Navigating the path to AI-driven value creation

By Philipp Leutiger

As we look toward 2025, Artificial Intelligence (AI) has emerged as the cornerstone of technological advancement. AI's transformative potential is immense, promising to revolutionize industries and redefine operational paradigms. However, a closer examination reveals a stark reality: the implementation of AI is often fraught with challenges, including high costs and uncertain business cases. So, how can organizations effectively harness AI to drive value and achieve scale?

The High Stakes of AI Implementation

While AI promises innovation, organizations must be cautious in their approach. Initial forays into AI can quickly become costly, with many initiatives failing to deliver tangible returns. Therefore, it is crucial to avoid vanity projects that showcase creative or niche AI applications. Instead, companies should prioritize initiatives that align closely with profit and loss (P&L) lines or current strategic objectives.

Focus on High-Impact Opportunities

To maximize the potential of AI, organizations need to concentrate their efforts on areas that can yield significant results:

1. Explore Untapped Areas: Projects that have been the focus of attention for an extended period often reveal limited potential for innovation. In contrast, pursuing virgin ideas, such as routing optimizations, can uncover new avenues for improvement.
2. Address Business Continuity Challenges: While initiatives with substantial implications for business continuity may be difficult to implement, they can provide significant rewards. Engaging stakeholders and securing buy-in is essential for success in these high-stakes projects.
3. Automate Manual Processes: AI can effectively streamline significant manual processes. For example, replacing traditional sales-driven demand forecasting with AI-driven models can enhance accuracy and efficiency.
4. Analyze Previously Overlooked Processes: Utilizing AI to gain insights into customer behavior and other processes that were previously outside the analytical scope can unlock new growth opportunities.

Measuring Success Beyond Percentages

Organizations should focus on measuring percentage improvements and consider the process changes required to translate these improvements into tangible value. For instance, optimizing truck rolls to reduce waiting times by 20 minutes is only beneficial if it leads to additional truck rolls or reduced driver overtime costs.

Building Momentum Through Early Successes

The journey to AI implementation is not without its hurdles. To foster an innovation environment and encourage further investment in AI initiatives, it is vital to ensure that initial projects yield successful outcomes. These early wins can create momentum within the organization, inspiring confidence and encouraging broader adoption of AI technologies.

Charting a Strategic Path Forward

As we venture into the AI-driven landscape of 2025, organizations must adopt a strategic and pragmatic approach to implementation. By focusing on high-impact opportunities, measuring success through comprehensive value assessments, and ensuring early project successes, companies can navigate the complexities of AI and unlock its full potential. In this dynamic environment, pursuing scale is not just a goal but a necessity for sustainable growth and competitive advantage.

Contact Roland Berger's experts today to explore tailored strategies that can advance your AI initiatives and maximize value creation.