5 Ways How Board Members Can Turn AI from a Threat Into an Opportunity
Artificial Intelligence (AI) is one of the defining megatrends of our time. But is it a threat, or an opportunity, that Swedish businesses cannot miss?
Peter Kurzwelly, a key figure in strategic partnerships at AI Sweden, offered deep insights into the trends, challenges, and future scenarios at our event d.executive summit 2024. Read about our learnings and see how corporate boards can turn AI's potential into reality.
Who is Peter Kurzwelly?
Peter Kurzwelly leads strategic partnerships at AI Sweden in Canada, an organization dedicated to accelerating the use of AI to benefit society, enhance competitiveness, and improve life in Sweden. Peter initiated a community for Swedish CEOs and CXOs to strengthen Swedish competitiveness. He also hosts the well-regarded podcasts "AI Sweden Podcast" and "The World We Are Building" together with Allison Cohen.
What is AI and What It Means for Executive Boards?
AI is the next wave of digital transformation after the introduction of computers, the Internet, and mobile devices. It is a technology capable of simulating our own intelligence but on a much bigger scale.
As businesses around the world strive to harness its potential, Swedish companies must also consider how to integrate AI into their operations to stay competitive. Peter highlighted crucial points for understanding and leveraging AI in business:
Understanding AI Competence and Technology
There is a significant lack of understanding about AI competence and technology. Many businesses do not fully grasp what AI entails or its potential applications. It’s one of the reasons why Sweden is falling behind countries like Denmark, Finland, Belgium, and the Netherlands in AI adoption and integration.
Misconceptions
AI is often viewed through the lens of risk, leading to a passive approach rather than recognizing it as a powerful tool for productivity enhancement. Beyond being a fun widget that answers trivial questions or creates nice-looking pictures, AI represents a tremendous technological opportunity that can significantly boost efficiency, such as supporting evidence-based decision-making. For Swedish businesses, this means the ability to faster and more accurately predict future trends based on historical data.
Swedish companies have clear opportunities to reshape their industries through AI. By proactively adopting AI technologies, they can gain a competitive edge, drive innovation, and influence the evolution of the AI market. Waiting for events to unfold deprives Swedish businesses of the chance to lead and shape the future of their industries. Embracing AI now allows them to set the pace and standards, ensuring they remain at the forefront of technological advancements
AI in Manufacturing
Sweden is losing ground to Europe and the rest of the world due to productivity challenges. However, there is a cultural hesitancy in manufacturing industries to invest in AI, despite its potential to significantly increase productivity with ROI within 10–20 months and five times ROI within 5 years (numbers from World Economic Forum's Global Lighthouses).
Unlike some hesitant industries, leading institutions like the World Economic Forum advocate for AI investments due to their substantial long-term returns.
Key Components of AI Implementation
Successful AI implementation requires a combination of:
Algorithmic Innovation
Data
Computational Power
People with the right competence
Strong Business Case
These elements together create value and drive business transformation.
Strategic Focus Areas
Data Strategies: Companies need to develop robust data strategies, invest in data extraction projects, and create new business models.
Domain Expertise: Understanding what is crucial for the business and investing in data that addresses those needs is essential.
Change Management: A significant part of AI adoption involves change management, including new processes and working methods.
As you can see, AI connected with innovative thinking and strong leadership can transform companies that choose to follow this path. Adoption of AI can boost simple efficiency, but furthermore, it can help reshape the company’s business model. However, looking for new ways of AI implementation within your business requires a well-thought plan that follows 5 steps.
The Path Forward: 5 Practical Steps for Board Members
Given the insights shared by Peter, here are practical steps that corporate boards can take to embrace AI:
1. Invest in Education and Understanding
Boards need to educate themselves about AI and its potential. Understanding the technology and its implications is the first step toward effective implementation. Only then, board members can work on effective AI strategies.
2. Develop a Clear AI Strategy
Formulate a clear strategy that outlines how AI will be integrated into the business. This should include identifying key areas where AI can add value and setting realistic goals for AI projects.
3. Foster a Culture of Innovation
The AI-powered transformation that meets the company’s strategy can happen only in an innovation-friendly environment. Encourage a culture that embraces change and innovation. This includes promoting a mindset that views AI as a tool for enhancing productivity rather than a risk.
4. Focus on Data
High-quality and relevant data is the key. Invest in data strategies and ensure that the organization has the necessary infrastructure to manage and utilize data effectively.
5. Collaborate and Build Partnerships
Common efforts bring more effects. Engage with AI experts and organizations like AI Sweden to gain insights and collaborate on AI projects.
Swedish Companies Can Lead the AI Transformation
AI creates a transformative opportunity for Swedish companies. To harness its potential, they need to consider how to integrate it into their operations. By understanding the trends and addressing the challenges mentioned above, businesses can enhance their competitiveness and drive significant value. People who don’t want to sit and wait to see what their industry will look like in ten years, need to adopt AI within their businesses now.
Board members should use proactive engagement, strategic investment, and the insights provided by Peter to strategically implement AI to ensure that Swedish companies remain at the forefront of technological innovation.
Thank you Peter for sharing your expertise and developing Swedish board work together with us.
