By For a lot of businesses, achieving successful digital transformation is still a challenge, especially with the growing number of channels and a customer base that’s more demanding and less loyal. A recent study by VML Enterprise Solutions revealed that 37% of digital transformation initiatives fail, highlighting the struggle many face. AI is at the forefront of re-evaluating these transformation strategies, but it comes with its own set of hurdles.
The report shows that 60% of those surveyed view AI as a crucial element in their digital transformation efforts. This is largely because AI presents exciting opportunities to enhance and expand digital changes. In fact, 78% of those involved in transformation believe that AI will boost their ability to effectively implement and manage digital projects.
Additionally, 77% of these transformation leaders acknowledge that the rise of AI has prompted them to reassess their strategies.
On another note, 79% agree that generative AI is significantly influencing their transformation processes, impacting how they manage people and technology. However, the rapid pace of AI advancements is creating challenges for many, with 64% stating that the speed of AI development complicates their long-term transformation planning.
Furthermore, the report indicates that various aspects of digital transformation are being tested by AI’s capabilities. This is particularly evident in data systems and technology infrastructure, where 61% of respondents feel their current setups are insufficient to support their AI goals.
Budgets are feeling the strain, with 73% of respondents indicating they’ve had to reevaluate their digital transformation budgets to make room for AI projects. Additionally, 66% of employees feel that their ability to leverage AI’s transformative potential is hindered by colleagues who are having difficulty adjusting to AI-driven workflows.
On another note, 60% of employees acknowledge that they lack the necessary internal expertise to effectively integrate AI into their transformation efforts.
Steps to Tackle Challenges
To address these issues, organizations need to take a fresh look at their transformation strategies through the lens of AI and conduct a thorough review of their current transformation plans with an AI focus. It’s essential to upgrade existing infrastructures to ensure they are ready for AI, as the report suggests that the technical groundwork should be evaluated and improved before embarking on AI initiatives. Attention should also be given to data processing and storage capabilities.
Moreover, companies should allocate specific budgets for AI and set up dedicated funding sources for AI projects while safeguarding their main transformation budgets.
Creating adaptable AI implementation strategies and developing phased approaches that balance innovation with realistic adoption rates is also crucial, according to the report.
Most companies can’t handle digital transformation on their own and often turn to external partners with specialized knowledge. With 81% of businesses relying on outside help for their transformation efforts, expertise in AI has become a top priority.
A LinkedIn report from March this year highlighted that AI literacy is the fastest-growing skill among professionals, with a staggering 240% increase in hiring for AI-related positions over the past eight years. However, soft skills such as strategic thinking, adaptability, and conflict resolution are also becoming vital in the changing job landscape.
In fact, LinkedIn forecasts that by 2030, 70% of job skills will evolve due to the swift adoption of AI across various sectors and the changing political and economic environment, increased return-to-office mandates and growing demand for cross-functional and problem-solving skills.
Drop your thoughts in the comments or reach out to us for more info!
