GenAI is ushering in a new era of digital transformation. For tech companies, the effect is double-edged. Many are already far along in their digital transformation journeys, and leaders will need to reassess and pivot their ongoing digital strategies to ensure that AI takes a central role. Transformation efforts that were designed and implemented before GenAI’s emergence are rapidly becoming outdated, and the early leaders could lose ground to competitors who prioritize new capabilities.
By contrast, tech companies that fell behind in earlier stages of digital transformation have a clear opportunity: by putting AI at the center of their strategies, they could leapfrog competitors who were previously well ahead. AI will enable them to not only speed up their transformation journeys, but also to reposition their operations to capitalize on rapidly emerging technologies and business models.
Faced with this balance of risks and opportunities, tech companies that are looking to retain or achieve industry leadership in digital transformation should establish an AI control tower — a dedicated steering group comprising a mix of business unit heads and other key executives, such as chief digital or data officers. This group can formulate an overarching vision for the business’s GenAI-infused digital transformation, identify and strategize for key opportunities, optimize talent strategies and ensure that AI is deployed in a responsible manner.
Crucially, an AI control tower will ensure that humans remain at the center of digital transformation. It will also position leaders to support safe, trusted and ethical AI deployments by driving appropriate policies and procedures, governance and accountability strategies, and training and awareness campaigns.
GenAI is not the only emerging technology driving new innovation for tech companies. Edge, cloud and quantum technologies, among others, can also play key roles in digital transformation. Rather than treating GenAI as an isolated technology, companies that integrate GenAI into a broader technology transformation will be better placed to create sustained value.