Boards Journey with Generative AI Has Only Just Begun

In the face of digital disruption, boards of directors must act strategically to navigate the evolving landscape, which is now being profoundly shaped by generative AI (GenAI). Over the past two decades, industries such as tech, media, and telecommunications have demonstrated how early adoption of digital technologies can lead to significant growth and transformation. Organisations like Schibsted, Comcast, Egmont, Ericsson, Helsinki University Hospital, Securitas, BCG, and TietoEvry are  some of the trailblazers by leveraging technology to transform their businesses. However, the full potential of GenAI is still unfolding.

 

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As boards confront these shifts, they need to distinguish between short-term “storms” and fundamental changes akin to “climate change,” as well as time their investments wisely to avoid being either too early or too late. More than ever, the role of the board is to foster agility, embrace new business models, and form strategic partnerships. They must also align their organization’s risk appetite with that of management and shareholders, all while maintaining oversight to ensure the successful execution of strategic initiatives.

The Transformation Is Just Beginning

While digital transformation has long been a focus in tech and media, GenAI represents a new phase of disruption with broader implications. Schibsted’s pivot to digital classifieds in the 1990s was an early example of leveraging technology to create market leadership. However, this shift is now being dwarfed by the speed and scale at which GenAI is poised to reshape industries.

Take Ericsson as an example: the telecommunications leader uses AI to optimize network performance and predict maintenance needs, automating its 5G networks in real-time. In healthcare, Pfizer is utilizing GenAI to process large data sets quickly, accelerating drug development timelines. These examples underscore that the true potential of GenAI is still in its infancy, and boards must recognize the transformative opportunities ahead.

The Time to Act Is Now

Timing has always been critical in capitalizing on disruption, and this holds true for AI adoption. Companies that recognized digital waves early, such as Schibsted and Comcast, have thrived by making bold moves. Today, organizations that implement AI early stand to gain a competitive edge. Several companies integrate GenAI assistants powered by their own proprietary insights like Egmont with EgmontGPT, McKinsey’s Lilli, Klarna’s Kiki, and BCG’s Gene AI.

Research from MIT and BCG found that consultants using AI completed 12.2% more tasks and did so 25.1% faster. As sectors like healthcare and industrials begin to adopt GenAI, boards must push for swift, decisive action to avoid falling behind. For instance, Takeda’s use of GenAI to benchmark clinical trials has significantly sped up the process, illustrating the tangible benefits of early adoption. And Klarna that handled two-thirs of their customer service chats with AI already first month, with improved custoers satisfaction and profitability.

AI Unlocks Speed—Speed Is the New Competitive Advantage

Speed is emerging as a critical differentiator, and GenAI’s capacity to accelerate operations across industries is one of its most exciting benefits. From automating internal processes to improving customer service, AI is enabling faster execution and response times, which can define a company’s competitive standing.

Securitas, for example, employs AI for real-time threat detection, addressing risks before they escalate. Similarly, CMA CGM’s dynamic pricing powered by GenAI enables real-time pricing decisions, creating a level of operational speed previously unattainable with legacy systems. Boards must prioritize AI initiatives that enhance speed, positioning their organizations to capitalize on this new source of competitive advantage.

Partnerships Will Unlock AI’s Full Potential

Strategic partnerships are vital to unlocking the full potential of AI. Schibsted’s partnerships with companies like Telenor played a crucial role in its success, and as AI evolves, collaboration will be even more essential. No company can navigate this transformation alone.

Ericsson’s collaboration with AI providers to enhance network automation is one example. In the healthcare sector, Helsinki University Hospital (HUS) has partnered with TietoEvry to develop AI-driven solutions that address challenges like staff shortages and budget constraints. These partnerships have allowed HUS to accelerate rare disease diagnoses and improve patient care, showcasing the power of collaboration in scaling AI solutions.

The Risks of AI Adoption Are Real, but So Are the Rewards

 

While the rewards of GenAI are immense, they come with risks. AI systems can make errors, and the integration of AI into existing workflows can be complex. Boards must align with management to determine how much risk they are willing to tolerate in pursuit of AI-driven innovation.

CMA CGM’s dynamic pricing system, while transformative, carries the risk of incorrect pricing if the AI is not properly managed. Boards must support AI initiatives while ensuring that management has the right policies, frameworks and tools to mitigate errors and balance the sustainability ambitions. The upcoming EU AI Act adds another layer of complexity, with strict regulations requiring businesses to assess the risk levels of their AI systems and maintain transparency and accountability.

Despite these challenges, the potential for long-term rewards is significant. Companies that embrace AI will not only gain a competitive edge but also unlock new avenues for innovation and value creation.

AI-Driven Execution Will Define the Future

While setting a clear strategy is essential, success in the AI era depends on effective execution. Companies like McKinsey & Co. and Dick’s Sporting Goods are already leveraging AI to streamline operations and enhance marketing. For example, McKinsey’s automated knowledge tagging through GenAI has significantly boosted efficiency, providing real-time insights and improving decision-making.

The rapid pace of innovation is exemplified by tools like OpenAI’s Advanced Voice Mode (AVM) and Google’s NotebookLM, which transform complex content and insisghts into engaging, interactive dialogues. These innovations, paired with scalable AI-driven strategies, demonstrate how quickly adopting companies can continuously innovate and maintain a competitive edge. Boards must prioritize staying current with these advancements to ensure successful AI implementation and long-term growth.

Execution, not just strategy, will define leadership in the AI era, and companies that act swiftly to integrate AI at scale will be best positioned for future success.

 

Conclusion: The AI Revolution Has Only Just Begun —The Future is Yours to Shape

As boards navigate the rapidly evolving digital landscape, generative AI offers a unique opportunity to lead the next wave of transformation. Early adopters in media and tech have shown the way, but the real potential of GenAI lies ahead, particularly in sectors like healthcare and industrials.

Boards that act quickly, fostering agility, forming partnerships, and aligning risk with strategy, will position their companies as leaders in this new era. The message is clear: the GenAI revolution has just begun, and those who seize the moment will shape the future.

 

References and Further Reading :

Coping with Disruption by INSEAD Knowledge by Anet Aris and Kristin Skogen Lund

How Companies use GenAI to execute with Speed by MIT Sloan

From Potential to Profit with GenAI by BCG

AI powered HealthCare by TietoEvry

Egmont created an internal chat tool EgmontGPT by Mediawatch

Meet Lilli, our GenAI that is a researcher, time saver and inspiration by McKinsey

How GenAi can bost skilled workers productivity at MIT Sloan

Klarna AI assistant handles two-thirds of customer service chats in first month and

90% of Klarna Staff is using AI daily by Klarna

Navigating the impact of the EU AI Act by TietoEvry

How to use OpenAi Advanced Mode by CNBC

Googles NotebookLM enhances AI notetaking with Youtube, audiofile sources, sharable audio discussions by Tech Crunch

 

 

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About Digoshen

This blog post was originally shared at the blog of Digoshen  www.digoshen.com,  and the blog of the Digoshen founder www.liselotteengstam.com

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