Transforming Business Models is Key to Harnessing AI’s Full Potential, Says IBM Senior VP

Unlocking the Full Potential of AI: Insights from IBM’s Ana Paula Assis

At the recent Fortune Global Forum in Riyadh, Ana Paula Assis, IBM’s Senior Vice President and Chair for EMEA and Growth Markets, shared critical insights on the transformative role of artificial intelligence (AI) in business. Emphasizing the need for companies to evolve their operating models, Assis argued that merely adopting AI technology is not enough; a comprehensive, organization-wide approach is essential to harness its full potential.

The Promise of AI in Productivity Enhancement

Assis pointed out that AI holds significant promise for boosting organizational productivity. According to IBM’s findings, two-thirds of executives across Europe, the Middle East, and Africa (EMEA) are already experiencing positive productivity impacts due to AI initiatives. Interestingly, leaders in Saudi Arabia noted the most substantial benefits, with 84% claiming AI has positively influenced their operations.

Yet, the conversation hints at a more complex reality: while many organizations are investing heavily in AI, a considerable number struggle to move beyond initial pilot programs. Despite the rapid increase in AI-powered workflows—now almost double what it was a year ago—an alarming 95% of organizations reportedly don’t see a clear return on their AI investments. This disconnect is often attributed to a "learning gap," suggesting that the challenge lies not in the technology itself but in how organizations understand and leverage it.

The Need for a Systemic Approach

During her address, Assis articulated the importance of adopting a systemic approach to AI. This involves pervasive implementation across different departments, bridging silos, and moving from isolated experiments to widespread business adoption. "Exploring the full potential of AI means embracing an integrated methodology," she stated, highlighting the need for companies to rethink their data and technology interactions holistically.

Data readiness is pivotal. Assis revealed that only about 1% of the data residing in corporate applications is currently accessed by AI systems. This statistic underlines a tremendous opportunity awaiting companies willing to expand their data utilization and integrate AI more effectively.

Navigating Complex Technological Environments

The complexity of current corporate structures presents additional challenges in AI integration. Assis emphasized that many businesses operate within intricate technological ecosystems, necessitating seamless coordination across various teams and systems. Successful adoption of AI requires not just technology but also a cultural shift within organizations towards openness, interoperability, and flexibility.

Companies are increasingly in search of partners and solution providers that can demonstrate their capability to scale AI responsibly and effectively. This move is crucial for building a foundation of trust, governance, and robust security that aligns with corporate guidelines and ethical principles.

Building Trust Through Governance

Trust remains a critical component in the successful adoption of AI technologies. Assis pointed out the growing demand for orchestration capabilities and security measures at the core of AI implementation. Businesses are looking for reliable frameworks that ensure compliance and ethical use of AI, establishing governance approaches that reflect their core values and principles.

The expectation is clear: organizations must encode their operational guidelines and ethical considerations into the workflows driven by AI. This not only safeguards against potential pitfalls but also fosters an environment of trust, enhancing collaboration across all levels of the business.

The Road Ahead for AI in Business

In conclusion, as articulated by Assis at the Fortune Global Forum, the journey toward successfully integrating AI into business is multifaceted and requires a shift in mindset. Companies must prioritize systemic changes that embrace data integration, promote organizational transparency, and build trust. The transition from pilot programs to enterprise-wide adoption is not merely a technical challenge—it is a strategic imperative that will define the future of business in an AI-driven world.

As organizations navigate the complexities of modern technology landscapes, the lessons shared by Assis underscore the critical importance of collaboration and careful planning in harnessing AI. With a strong focus on transforming operating models, businesses can unlock the transformative benefits of AI and build a foundation for sustained growth and innovation.