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Ceridian 2024 Predictions: AI as an Indispensable Teammate Across Company Functions

vmblog-predictions-2024 

Industry executives and experts share their predictions for 2024.  Read them in this 16th annual VMblog.com series exclusive.

AI as an Indispensable Teammate Across Company Functions

By David Lloyd, Chief Data Officer, Ceridian

As organizations increasingly embrace AI as an integral part of their operations, discussions among data managers, CIOs, people leaders, and chief data officers will center on balancing the speed of innovation with proper controls and processes. At the core will be people.

In our 2023 Executive Survey, 79% of executives surveyed believe they have the right talent and skills to leverage AI throughout their organizations. Success in the coming year will depend on the time taken to formulate a deliberate and responsible approach while building a portfolio of both short- and long-term projects. 

Organizations Aren't Prepared to Fail Fast in Their AI Project Portfolios

In a recent Gartner poll, 70% of executives said that their organization is in investigation and exploration mode with generative AI, while 19% are in pilot or production mode. What this means to organizations is that planning what to invest in should be a priority. The application of AI to different opportunities and problems is not a guarantee of success. Establish a multi-disciplined team to assess different opportunities, asking yourself five key questions:

  1. Does the project truly require AI or are other options to solve it more viable?
  2. Do you actually have the quality, consistency, diversity and breadth of data needed?
  3. Are there any limitations at the governmental or regulatory level impacting use?
  4. What is the business outcome you expect to achieve and who is impacted?
  5. Do you have the skills in place with experience to fast fail and succeed?

Prediction: Many organizations will jump quickly into the opportunity to use AI but could become disillusioned due to a lack of alignment around the project portfolio goals and promise.

Navigating the Regulatory Maze

One of the central challenges on the horizon is the regulatory environment surrounding AI. AI will be dragged through a messy regulatory maze, with regulations raining down from all corners of the world. This complex landscape is expected to vary not only on a national level but could also differ on a state-by-state or even a city-by-city basis, mirroring the current variations in tax laws.

Within the United States, businesses will grapple with the need to address a patchwork of regulatory AI frameworks. The key question organizations will face is, "Should AI be enabled here, and if so, how?" Understanding and complying with these regulatory nuances will require business leaders to swiftly become well-versed in AI compliance or seek assistance from third-party experts to ensure their organizations remain both compliant and secure.

Prediction: Compliance needs will continue to grow, impacting the business through the use of AI. 

Data Management and Ethical Concerns

According to a recent Harris Poll survey commissioned by Ceridian, nearly three quarters of American employees (72%) hope AI will allow them to do more of the work they enjoy by automating the tasks that they do not.

As AI becomes an integral part of company functions, questions surrounding data privacy, security, and ethics will take center stage. The focus will shift from merely possessing data to understanding how AI utilizes it. With existing data regulations like GDPR and the California Consumer Privacy Act, organizations must navigate an increasingly complex landscape. How different AI solutions may introduce bias will be another concern. Just as organizations worry about compliance within their payroll functions, the theme of compliance will continue to expand across the use of AI.

To address these concerns, organizations will need to implement proper training and establish clear boundaries for employees using generative AI tools like ChatGPT and Bard, as well as non-generative AI models that make predictions. Factors including data privacy, transparency and explainability will all come into play. Without proper education, there's a risk of a "leaky boat," with employees unintentionally sharing sensitive information. Organizations must invest in training programs and guidelines to ensure employees understand how to use AI solutions without compromising proprietary information. These organizations must be able to explain how a prediction was made and interpreted.

Prediction: In the end, AI is based on data. Organizations will realize that their corporate data is not as complete, impacting the AI projects they wish to tackle. 

Opportunities Ahead for the Data-Driven Enterprise

Amidst the challenges, opportunities for data-driven enterprises in 2024 are promising.

AI-driven tools are set to transform how organizations understand and leverage their data, empowering employees to excel in their roles. A key consideration in achieving maximum value is to not only introduce AI but consider how the business process changes with its introduction. Studies by the Wharton School of Business have shown that there is a material impact in the use of AI to transform when the underlying business processes encompassing it are adapted.

For example, Ceridian's Human Capital Management Platform, Dayforce, includes Dayforce Career Explorer, an AI-powered solution that helps improve engagement and retention by empowering employees to manage their careers. Powered by the Dayforce Skills Engine, Dayforce Career Explorer provides employees with access to unique, data-driven career pathing, opportunities for learning and development, and job notifications for open roles that match their skills and interests. Businesses should consider how they would remap their processes related to career development with this powerful type of AI in place.

Prediction: Businesses will pursue AI without considering additional positive impacts of how the introduction can truly transform their business processes, driving greater ROI.

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ABOUT THE AUTHOR

David Lloyd 

As Chief Data Officer at Ceridian, David Lloyd drives data strategy and execution related to analytics, intelligence and prediction including products that enable Ceridian's customers to leverage the richness of data and drive quantifiable value. Prior to joining Ceridian, David served as the CEO of companies that successfully leveraged data science and intelligence to create amazing customer experiences, while simultaneously building award-winning cultures and SaaS platforms loved by customers. His motto: Never stop learning.

Published Wednesday, December 06, 2023 7:35 AM by David Marshall
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