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:
- Does
the project truly require AI or are other options to solve it more viable?
- Do
you actually have the quality, consistency, diversity and breadth of data
needed?
- Are
there any limitations at the governmental or regulatory level impacting
use?
- What
is the business outcome you expect to achieve and who is impacted?
- 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
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.