Artificial intelligence and generative AI (gen AI) are set to bring about a significant transformation in economic growth and productivity. A recent McKinsey survey highlights how organizations aiming to make operational changes through this technology stand to gain the most.

Key to Realizing AI Benefits

For organizations to harness the advantages of AI, it is essential that the underlying models and their usage are secure, safe, and trustworthy. Implementing robust data governance, model-risk, security, and individual-rights management forms the crux of responsible AI governance. These pillars collectively lay a solid foundation for future digital transformation and digital trust. McKinsey research indicates that trusted organizations enjoy higher margins and better valuations compared to their less-trusted counterparts. Moreover, a small group of companies is dedicated to delivering this digital trust. Organizations with a strong position in building digital trust are more likely to witness annual growth rates of at least 10 percent on both their top and bottom lines.

Impact on Organizational Operations

Organizations that embrace AI in their operations can experience enhanced efficiency and streamlined processes. By leveraging gen AI, tasks that were previously time-consuming and labor-intensive can now be automated, freeing up valuable resources. This leads to increased productivity and the ability to focus on more strategic initiatives. For example, in customer service, gen AI can handle routine inquiries and provide quick responses, improving customer satisfaction. In manufacturing, AI can optimize production processes, reducing errors and increasing output. The potential applications of AI in organizational operations are vast and hold the promise of significant growth.

Building Digital Trust

Establishing digital trust is crucial in the era of AI. Organizations need to ensure that their AI systems are transparent and explainable to gain the trust of their stakeholders. This involves clearly communicating how the AI works and the decisions it makes. Additionally, implementing strict security measures to protect sensitive data is essential. By doing so, organizations can build a reputation for reliability and integrity. Companies that prioritize digital trust are more likely to attract customers and partners who value these qualities. It also helps in complying with regulatory requirements and avoiding potential legal issues.

Future Digital Transformation

The foundation laid by secure and trusted AI will pave the way for future digital transformation. As organizations continue to integrate AI into their operations, they will be able to unlock new opportunities and drive innovation. Digital trust will be a key factor in this transformation, enabling seamless collaboration and data sharing across different departments and stakeholders. It will also facilitate the adoption of emerging technologies such as the Internet of Things (IoT) and blockchain. With a solid digital trust framework in place, organizations will be better equipped to navigate the challenges and uncertainties of the digital age and achieve sustainable growth.To read the full article, download the PDF here.