Importance of AI Leadership for ROI

𝗕𝗲𝘆𝗼𝗻𝗱 𝗠𝗟 𝗜𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻: 𝗛𝗼𝘄 𝗧𝗿𝘂𝗲 𝗔𝗜 𝗟𝗲𝗮𝗱𝗲𝗿𝘀𝗵𝗶𝗽 𝗖𝗿𝗲𝗮𝘁𝗲𝘀 𝗠𝗮𝗿𝗸𝗲𝘁 𝗗𝗼𝗺𝗶𝗻𝗮𝗻𝗰𝗲 Two years ago, I witnessed a pivotal moment. Two competitors in the same industry launched AI initiatives with nearly identical budgets. Today, one has transformed its market position while the other quietly disbanded its AI team. The difference wasn't talent, technology, or timing. It was the presence of true AI leadership. After guiding AI transformations across multiple sectors, I've observed a clear pattern: organizations conflate technical implementation with strategic leadership — a costly misconception in the algorithmic age. 𝗧𝗵𝗲 𝗔𝗜 𝗟𝗲𝗮𝗱𝗲𝗿𝘀𝗵𝗶𝗽 𝗗𝗶𝘃𝗲𝗿𝗴𝗲𝗻𝗰𝗲 Most executives approach AI through a traditional technology lens: selecting vendors, implementing solutions, and measuring ROI. However, organizations creating asymmetric returns operate from a fundamentally different framework. When I joined a life sciences company's transformation, they had invested $15M in ML capabilities with minimal impact. Within 18 months of shifting to an AI leadership approach, those same technical assets drove a 28% market share increase in their core business line. 𝗧𝗵𝗲 𝗧𝗵𝗿𝗲𝗲 𝗗𝗶𝗺𝗲𝗻𝘀𝗶𝗼𝗻𝘀 𝗼𝗳 𝗔𝗜 𝗟𝗲𝗮𝗱𝗲𝗿𝘀𝗵𝗶𝗽 True AI dominance emerges at the intersection of three capabilities most organizations develop in isolation: 𝟭. 𝗔𝗹𝗴𝗼𝗿𝗶𝘁𝗵𝗺𝗶𝗰 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗔𝗿𝗰𝗵𝗶𝘁𝗲𝗰𝘁𝘂𝗿𝗲: Redesigning core business processes around algorithmic decision-making, not just augmenting existing workflows. One healthcare organization restructured its entire patient journey based on predictive insights, creating a competitive moat its technology-focused competitors couldn't replicate. 𝟮. 𝗗𝗮𝘁𝗮 𝗦𝗼𝗽𝗵𝗶𝘀𝘁𝗶𝗰𝗮𝘁𝗶𝗼𝗻: Moving beyond data volume to data uniqueness. The market leaders I've worked with systematically identify and capture proprietary data assets that create algorithmic advantages that are impossible for competitors to match, regardless of their AI investment. 𝟯. 𝗗𝗲𝗰𝗶𝘀𝗶𝗼𝗻 𝗩𝗲𝗹𝗼𝗰𝗶𝘁𝘆: Implementing governance models built for algorithmic speed. One financial services firm reduced model deployment from months to days, allowing them to capture temporary market inefficiencies before competitors could respond. The organizations achieving market dominance are those with leadership capable of orchestrating these dimensions simultaneously. Have you observed this leadership gap in your industry? 𝘋𝘪𝘴𝘤𝘭𝘢𝘪𝘮𝘦𝘳: 𝘛𝘩𝘦 𝘷𝘪𝘦𝘸𝘴 𝘦𝘹𝘱𝘳𝘦𝘴𝘴𝘦𝘥 𝘢𝘳𝘦 𝘮𝘺 𝘱𝘦𝘳𝘴𝘰𝘯𝘢𝘭 𝘪𝘯𝘴𝘪𝘨𝘩𝘵𝘴 𝘢𝘯𝘥 𝘥𝘰𝘯'𝘵 𝘳𝘦𝘱𝘳𝘦𝘴𝘦𝘯𝘵 𝘵𝘩𝘰𝘴𝘦 𝘰𝘧 𝘮𝘺 𝘤𝘶𝘳𝘳𝘦𝘯𝘵 𝘰𝘳 𝘱𝘢𝘴𝘵 𝘦𝘮𝘱𝘭𝘰𝘺𝘦𝘳𝘴 𝘰𝘳 𝘳𝘦𝘭𝘢𝘵𝘦𝘥 𝘦𝘯𝘵𝘪𝘵𝘪𝘦𝘴. 𝘌𝘹𝘢𝘮𝘱𝘭𝘦𝘴 𝘥𝘳𝘢𝘸𝘯 𝘧𝘳𝘰𝘮 𝘮𝘺 𝘦𝘹𝘱𝘦𝘳𝘪𝘦𝘯𝘤𝘦 𝘩𝘢𝘷𝘦 𝘣𝘦𝘦𝘯 𝘢𝘯𝘰𝘯𝘺𝘮𝘪𝘻𝘦𝘥 𝘢𝘯𝘥 𝘨𝘦𝘯𝘦𝘳𝘢𝘭𝘪𝘻𝘦𝘥 𝘵𝘰 𝘱𝘳𝘰𝘵𝘦𝘤𝘵 𝘤𝘰𝘯𝘧𝘪𝘥𝘦𝘯𝘵𝘪𝘢𝘭 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯.

Breaking Executive Trend Alert: The C-Suite is Evolving! Chief AI Officers (CAIO) are becoming the new must-have executives in the corporate world. Companies like Mastercard and Nike are leading the charge, embedding AI into their core strategies. Here’s why this matters for CPG brands: 1. AI is helping CPG brands streamline operations, from supply chain optimization to demand forecasting, reducing costs and increasing speed to market. 2. Brands are using AI to create more personalized experiences for consumers, enhancing engagement and driving loyalty through tailored content, product recommendations, and promotions. 3. AI enables real-time dynamic pricing, allowing CPG companies to adjust their prices based on demand fluctuations, competitor strategies, and market trends, ensuring maximum profitability. 4. AI accelerates product development cycles, helping companies test new ideas quickly, predict consumer preferences, and create products that better meet market demand. 5. Competitive Advantage: As AI technology continues to evolve, companies that invest in AI leadership will have a significant edge, being better equipped to adapt to rapid market changes and consumer demands. 🟢 Nike appointed Ratnakar Lavu as their first Global Chief Digital Information Officer, pioneering AI-driven digital transformation. 🟢 Mastercard named Greg Ulrich Chief AI and Data Officer, aligning AI with global operations to enhance customer experiences. 🟢 Unilever is investing in AI-powered supply chain optimization to streamline efficiency and boost profits. The stakes? McKinsey & Company reports companies effectively deploying AI are experiencing 20-25% EBIT growth. Yet, many companies lag behind in formalizing AI leadership. For my CPG network, The early movers are already leveraging AI to: -Revolutionize demand forecasting. -Dynamically optimize pricing strategies. -Personalize consumer experiences at scale. -Transform product innovation cycles. The reality: Only a fraction of companies have dedicated AI leadership roles today. Those who don’t adapt risk losing their edge in a rapidly transforming market. The companies investing in AI leadership roles, like CAIOs, now will dominate their categories tomorrow. The talent war for experienced AI executives is heating up—and securing the right leaders has never been more critical. Are you seeing this shift in your organization? How is your company approaching AI leadership? #ExecutiveSearch #Leadership #CPG #AI #FutureOfWork #CxOHiring #DigitalTransformation

In preparing for a upcoming keynote speech on #genai and the impact on #work; I found these Insights global study by Google #Cloud and National Research Group some of the best I have seen. As a management consulting leader, I'm struck by the clear imperative for organizations to educate themselves on gen AI today. Here are some key takeaways: 1) 74% of enterprises using gen AI report ROI within the first year - faster than most #software deployments 2) 86% of organizations seeing revenue growth estimate a 6%+ increase in annual revenue (real revenue growth!) 3) 84% can move a gen AI use case from idea to production in under 6 months (once again, speed WINS) 4) 45% of organizations report employee productivity has doubled or more due to gen AI (maybe some technology to make our lives easier!) The message is clear: gen AI is not just another tech trend, but a key driver of business transformation and competitive advantage. The study also reveals a "gen AI #leadership gap" - only 16% of organizations are truly leading in this space. These leaders are seeing outsized gains in revenue, productivity, and innovation. To close this gap, organizations must prioritize gen AI education at all levels. This means: 1) Building unified C-suite support and vision for gen AI initiatives 2) Focusing gen AI efforts on core business functions 3) Investing in AI talent development across the organization 4) Prioritizing data quality and infrastructure to support gen AI It is more clear to me than ever that the time to act is now. Those who invest in understanding and strategically implementing gen #AI today will be best positioned to thrive in the AI-driven future of business. Link to the complete study if interested - https://lnkd.in/gmn-yAwE #GenerativeAI #BusinessStrategy #Innovation #Leadership Mercer Ravin Jesuthasan, CFA, FRSA JESS VON BANK #google Adriana O'Kain Ryan Malkes

Despite AI’s rapid rise since the launch of ChatGPT, only 1 in 4 companies report real business value from Generative AI. Even fewer are ready for what comes next: AI agents that work toward goals instead of following explicit instructions. In my latest article, published in the American Management Association's quarterly journal, I outline a systematic approach to AI implementation that highlights three critical leadership dimensions: 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆: Leaders need to align AI efforts with business goals and KPIs. Start by identifying measurable value drivers, like customer conversion or cost reduction, and assess how AI can support them. 𝗣𝗿𝗼𝗱𝘂𝗰𝘁 𝗠𝗶𝗻𝗱𝘀𝗲𝘁: AI adoption isn’t a traditional IT rollout. Success requires experimentation, iteration, and tight collaboration between business and tech teams. A clear idea funnel and review checkpoints help avoid sunk costs. 𝗖𝘂𝗹𝘁𝘂𝗿𝗲: AI adoption depends on trust and transparency. Employees often hesitate to admit they use AI tools, fearing judgment. Leaders must set guardrails, encourage experimentation, and design workflows that balance human oversight with AI autonomy. Agentic AI introduces teams of autonomous agents capable of collaborating across departments and even across companies. But realizing this vision takes more than technology. It requires true leadership. How are you preparing yourself to lead as you bring AI into your workplace? Read the full article: https://lnkd.in/dcwsd98h #ArtificialIntelligence #Leadership #IntelligenceBriefing