Evolving C-Suite: How to Lead in the Era of Gen AI
Discover how visionary leaders and strategic partnerships drive success in the age of GenAI.
Monish Darda, CTO of Icertis, delves into leaders’ role in seismic shifts reshaping industries as AI becomes pivotal in driving strategic initiatives and operational efficiencies.
In its groundbreaking debut last year, AI-driven ChatGPT ignited political discussions about regulation, intensified competition among businesses capitalizing on the AI gold rush, and simultaneously sparked apprehension and innovation in a volatile economic environment.
AI has been around for decades; 2023 was the year of a transformative surge, with senior business leaders increasingly aware of its potential to impact their bottom line. A recent Icertis survey found that nearly half of C-suite leaders agree that 2024 is a pivotal year for this technology as it begins to deliver tangible outcomes across critical functions such as legal, finance, and procurement.
Microsoft was one of the first global companies to recognize its potential, as evidenced by its multi-billion-dollar investment in OpenAI starting in 2019, which has since swelled to $13 billion. Additionally, the launch of ChatGPT competitors like Google’s AI and Gemini (formerly known as Bard) underscores the industry’s recognition of OpenAI’s pioneering work and AI’s potential to transform our lives.
The hyperscale evolution of gen AI is changing how enterprises operate from the top down and warrants a strategic reevaluation of resource allocation within organizations. This includes shifting investments toward the use of AI in digital transformation initiatives and corporate strategy. Businesses today are facing an unprecedented demand for innovation and efficiency, which means strategic decision-making around AI investments is now fundamental to remain competitive.
How AI Impacts Leadership?
One of the most dramatic examples of pivotal transformation in the 21st century continues to be Microsoft, a company once perceived as faltering and having missed the biggest tech waves, including mobile and search, consumer social networking, and even following from behind on the cloud. Yet, with a unique foresight, the company embarked on a trajectory of relevance propelled by AI.
CEO of Microsoft, Satya Nadella, saw the vision of AI clearly and understood the power of what the technology could do for people and businesses. He proceeded to execute the vision so well that he changed the course of the company’s history! Reuters reported that Nadella’s leadership in the AI age catapulted the company’s valuation from $300 billion to over $3 trillion, rivaling Apple as the world’s most valuable company.
Why is that worth mentioning?
In the coming decade, CEOs must emulate such transformative leadership to thrive in the era of generative AI. This includes not just adapting but fundamentally redefining business practices. Business leaders must anticipate unforeseen threats, seize developing opportunities, and execute with unwavering commitment. Overall, the concept of leadership is changing rapidly – it is not AI that will take over the world; it is a new way of leading that will. Don’t just think about how to run your business more efficiently; think about how to run your business differently.
See More: The IT Leaders’ Guide to Building an Innovative Organization
What Can Leaders Do Differently?
Being a leader means being open to learning and embracing innovation. I’ve learned that AI (especially GenAI) empowers people to accomplish things they could never do. Small tasks reserved for a specialist, such as designing a professional brochure, creating an image classified as art, designing a logo for a new product, tailoring communications in an email, and even drafting a non-compete clause in a commercial agreement, are now accessible to the masses, opening a realm of untapped potential. What Satya and other visionary leaders are doing is finding opportunity in these little things that can make big things work better – so much better that they transform their business.
For example, Gen AI is used to discover new drugs and enhance existing ones. Consider the possibility of a groundbreaking pharmaceutical discovery emerging from a two-person startup whose founders are geniuses in prompt engineering. Envision an innovative new hat material that offers unrivaled performance in snowy and rainy conditions. Or imagine the creation of a supercar designed to achieve the lowest air resistance ever recorded, setting new standards in automotive efficiency and performance.
Believe this is far-fetched? It’s time to reconsider – this is the future. Putting together new solutions by correlating vast amounts of data and being a creative instructor to the machine is the greatest force that humankind has known to date.
This signifies that leaders must make new assumptions and look at the world differently to maintain a competitive advantage and financial success. Here’s how:
Make partnerships critical to your business
Most C-suite leaders believe the demand for enterprise AI solutions will continue to surge in 2024 as companies recognize the immediate financial impact. As AI becomes deeply embedded in strategic initiatives and investments, decision-makers should lean on strategic partners to expand AI capabilities and meet the demand for AI solutions.
Differentiation lies in operational efficiencies, such as optimized infrastructure, workflows, and distribution networks, as well as in global partners’ creative and innovative contributions! Rapid integration with new partners and the mutual value derived from these collaborations will become increasingly important. Organizations that forge strategic alliances and lean on their partners to innovate, co-create, and expand on AI capabilities will be at the forefront of driving innovation forward.
Evolve financial models
Icertis’ The Future of Generative AI survey report uncovered that more than 80 percent of executives expect generative AI to affect their bottom line within the next five years. More immediately, the influence of AI on financial performance this year is anticipated to reach a pivotal turning point for companies across all industries, as more than 50 percent prioritize AI use cases with an immediate impact on revenue or cost.
This underscores the necessity for innovative financial models, such as revenue sharing and outcome-based pricing. Additionally, in a business landscape increasingly influenced by AI, adopting flexible and creative just-in-time pricing strategies will be crucial to remaining competitive.
Companies must be able to adjust their pricing models quickly in response to market changes, customer demands, and competitive pressures. Generative AI will make it easier to implement pricing models that are too complex for humans to manage. Business leaders who use AI to develop complex pricing models will ensure their company thrives.
AI is transforming the C-suite, and the imperative for leaders to embrace, adapt, and innovate in the era of AI is clearer than ever. In this transformative period, the role of the C-suite demands a visionary outlook that can harness the disruptive power of AI to reshape strategic initiatives, operational efficiencies, and market positioning. Are you ready to lead in the age of AI?
How can leaders consider running their businesses differently with the assistance of AI? What steps are you taking to achieve success? Let us know on Facebook, X, and LinkedIn. We’d love to hear from you!
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