I stumbled across this article that highlights how companies are moving beyond the initial excitement around generative AI (gen AI) to focus on generating real business value. The key takeaway is that organizations need a well-structured operating model to scale gen AI successfully, with data playing a central role. This involves creating a framework that aligns technology, people, and processes to ensure AI solutions are impactful, not just experimental. It’s crucial for companies to avoid common traps, like investing in AI without a clear purpose or running disjointed pilot projects. Instead, they should focus on building adaptable AI components, creating cohesive teams, and ensuring risk and compliance management is integrated into the process. Additionally, many organizations are shifting from centralized AI teams to more decentralized models as they mature. This need for structure and organization directly aligns with industrial engineering, where the goal is to optimize systems by streamlining processes and improving efficiency. In the future, I aim to contribute by integrating AI and data analytics into continuous improvement strategies. I want to help design systems that not only leverage AI for innovation but also ensure that the technology is scalable, compliant, and aligned with business goals. #FutureOfWork #DataAnalytics
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After almost two years of excitement, companies are transitioning from the honeymoon phase of generative AI to scaling its real-world value. With 65% of companies already using generative AI regularly, the focus is now on building robust AI operating models that deliver measurable business results. But while many organizations have started integrating AI into their tech stacks, the challenge is: How do you scale AI to create lasting value? The key lies in effective data management, governance, and building a flexible operating model that evolves with the fast-paced world of AI. 🔑 Key insights include: Designing for Flexibility: Adopt a component-based model that allows quick updates without overhauling your tech stack. Decentralizing Development: Start with centralized teams, but plan for federated or decentralized AI teams as your capabilities mature. Data is the Backbone: Effective data management and governance are critical—especially when handling vast amounts of unstructured data. Risk & Compliance: Implement robust AI risk management to mitigate misinformation, hallucinations, and data leaks. If you're looking to implement scalable generative AI, this practical guide offers actionable steps, from team structures to compliance governance. 🔗 Dive into the full article to learn how your organization can build an AI operating model that drives success. #GenerativeAI #AIInnovation #DataGovernance #TechStrategy #DigitalTransformation #AIAdoption #FutureOfWork #McKinsey
A data leader’s operating guide to scaling gen AI
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💡 Working with DTC Brands across industries, AI Is Top of everyone's Mind! 💡 I’m frequently asked about AI implementation in their respective functions. According to the latest estimates from McKinsey, 65% of companies worldwide have implemented AI models—either in the pilot or production stages. 🌍🤖 But with a plethora of AI tools and platforms out there, businesses can feel overwhelmed. How do you choose the right solution for your functional and infrastructure use cases? 📝 This McKinsey report offers a great framework for CDOs and Chief AI Officers to scale GenAI successfully. Here are my key takeaways: 1️⃣ Operating Model: Develop a model that aligns people, processes, and technology to deliver the most value. In addition, build continuous Measure, Test, & Learn cycles. 2️⃣ Component-Based GenAI: Focus on critical components in the early phases—think APIs for data inputs, vector databases, Agents, Hallucination Checkers, and more. 3️⃣ Team Org Structure: Whether you choose a centralized or decentralized AI strategy depends on your organization’s structure and communication practices. 4️⃣ Risk & Compliance Management: Establish a baseline risk assessment and compliance framework, revising it as new risks are identified. check out the full report from McKinsey here: https://lnkd.in/gbnBYefR #AI #GenAI #DataScience #DigitalTransformation #McKinsey #Innovation #Leadership
A data leader’s operating guide to scaling gen AI
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Scaling Gen AI: A Guide for Data Leaders - Core Challenge: Companies often struggle to scale generative AI (gen AI) beyond pilots due to unclear operating models. - Operating Models: Successful gen AI scaling requires a structured model that integrates technology, data, and teams. - Common Pitfalls: Avoid “tech for tech’s sake” and uncoordinated trials. Focus on creating business value. - Team Structure: Choose between extending existing teams or forming distinct gen AI units. - Risk Management: Emphasize compliance, governance, and regular risk assessments. Read more: https://lnkd.in/gf3Rr7UN #GenerativeAI #DataLeadership #AIManagement
A data leader’s operating guide to scaling gen AI
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As gen #AI advances from experimentation to implementation, companies are urged to establish robust operating and technical models to steer deployments effectively. Central to these models is #data organization, allowing gen AI applications secure and scalable access. Data leaders play a pivotal role in orchestrating gen AI rollouts as genuine #digitaltransformations, ensuring clear #governance, objectives, and progress monitoring. By executing a well-coordinated strategy, companies can swiftly launch #genAI use cases from a centralized Center of Excellence (#CoE). This approach positions them for a gradual shift towards decentralized development, underpinned by shared technology infrastructure. This evolution enables #agile gen AI deployments, essential for competing in today's rapidly evolving AI landscape. Read more about scaling gen AI in the digital era: https://lnkd.in/dhwAjMQd
A data leader’s operating guide to scaling gen AI
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As companies transition from the honeymoon phase with generative AI to real-world application, the focus is shifting towards creating tangible value. Like it or not, AI is becoming an integral part of business strategy (looking at you, LinkedIn, for opting everyone in to their data being used to train their generative AI models...). How you embrace it into your strategy is the key to ensure measurable business outcomes. Many organizations are still in the pilot stage, but success hinges on aligning technology with strategic goals, avoiding pitfalls like tech-for-tech’s-sake and disjointed trial-and-error approaches. By fostering a well-defined operating model, businesses can truly harness the transformative power of gen AI for lasting impact. #IT #Business #GenAI #HolisticStrategy
Data leader's operating guide to scaling gen AI | McKinsey
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Ready to take #AI to the next level? As teams get better with #genAI, they can shift from #centralized to #decentralized models, letting each domain create its own custom tools. This means faster #innovation and more tailored solutions. Discover how:
A data leader’s operating guide to scaling gen AI
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Interesting posts from friends of our McKinsey members. Whether you’re a data leader looking to enhance your organization's AI strategy or an executive aiming to stay ahead in the digital transformation race, the guide offers valuable insights on: - Building a solid foundation for AI adoption: How to create an environment that fosters Gen AI implementation, from establishing the right infrastructure to nurturing a data-driven culture. - Identifying high-impact use cases: How to pinpoint the areas where Gen AI can deliver the most value, ensuring a focus on initiatives that align with business objectives. - Scaling AI capabilities effectively: Understanding the key elements for scaling AI initiatives across your organization, including talent, governance, and technology considerations. Article here: https://lnkd.in/gf3Rr7UN
A data leader’s operating guide to scaling gen AI
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Most companies have made steps to integrate AI into their tech stacks at some level. Yet a technical integration model is only part of what is necessary to generate lasting value from gen AI. Companies must also create gen AI operating models to ensure their technology implementations deliver measurable business results... #strategy #genai #growth #digitaltransformation
A data leader’s operating guide to scaling gen AI
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A brilliant piece of content by Alex Singla and the team McKinsey & Company and QuantumBlack, AI by McKinsey. Immediately, the phrase that catches my eye is "Honeymoon phase of AI," referring to leaders investing for productizing and monetizing Proof-of-concepts (POCs) and experiments. Centralized, Federated, and Decentralized is often a good question. I agree with some views here and my POV is that the measure of maturity of the next generation Data platforms will do it all with AI core. And as I always say, with this the next generation CompanyOSs will be born from the fundamental learnings of SaaS. #data #ai #saas #productmanagement
With many companies regularly using generative AI, we’ve recently found that only a fraction of them are reaping rewards from their investment. Is this because gen AI doesn’t live up to the hype or is there another reason? Our research shows that, more often than not, it's because some organizations simply don’t have a clear operating model - and this is critical. If you are struggling to move your gen AI program out of the piloting phase, you’re not alone, and there’s a lot that can be done to hit gold. This often involves designing a structured plan around how gen AI will be used, where it will be deployed, who will use it, and even what data will fuel it. I’m excited to share that our newest practical guide is a good blueprint for this. It has been great to collaborate with my colleagues and team to help bring it to life! A special thank you to Dr. Asin Tavakoli, Holger Harreis, Kayvaun Rowshankish, Klemens Hjartar, Gaspard Fouilland, and Olivier Fournier for the support and rich insights! https://lnkd.in/gnQ937Vg #QuantumBlack #AIbyMcKinsey #GenerativeAI #Innovation
A data leader’s operating guide to scaling gen AI
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Data leaders struggling with #GenAI integration are running into common traps like: * Tech for tech's sake: spending on tools without clear business goals * Trial and error: disjointed projects lacking coordination @McKinsey outlines how a cohesive operating model that integrates people, processes and technology can set organizations up for GenAI success. #AI #BusinessStrategy #datagovernance https://lnkd.in/gf3Rr7UN
A data leader’s operating guide to scaling gen AI
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