The development of Artificial Intelligence (AI) is having significant impact on the economy and society, increasingly influencing our lives. This presents tremendous opportunities, but at the same time raises questions about how the technology works and the reliability of its outcomes.
“We are drowning in data and starving for wisdom.” This well-known quote gets to the heart of the strategic challenge we are facing, at a time when AI taking the world by storm. Perhaps even more pertinent, though, is the continuation of the original quote, which states that “the world henceforth will be run by synthesizers, people able to put together the right information at the right time, think critically about it, and make important choices wisely.”
Connecting the dots
We believe that synthesizers will be the winners of tomorrow. They are the ones who know how to make connections. Between people and technology. Between data sources. Between organisations. Between specialists in different fields. Between legislation and society. They are therefore also the parties who do not reason from technology itself but from understanding how technology can be relevant to business and/or society.
Synthesizers are capable of connecting the dots. For KPMG, this is the central idea with which we help organisations anticipate a new reality. This is essential, especially because history shows that the arrival of new technology is often accompanied by opportunistic responses to new opportunities (with or without use cases). However valuable that approach may be in the embryo phase, exploiting its long-term potential requires a more thorough rethinking.
So, what dots are involved in the increasing adoption of AI? We see the following perspectives.
Trusted technology based on incisive choices
Machines are taking over tasks from humans – this fact is at the heart of the rise of AI – and this also means that decisions and actions, previously made and taken by a human, are being programmed into a machine. These include purely business decisions – such as pricing – but also ethical considerations, such as what is and is not morally acceptable. These decisions have traditionally been made by humans but are now increasingly being ‘hard’ programmed into systems. This can only be done responsibly if rigid standards (such as 'definition of success' and 'risk appetite') are defined extremely carefully. This requires, among other things, unerring insights the market and society, but also the ability to practically translate the choices made by the business to the developers of applications, so that they can develop 'trusted technology'.
Read more about AI and ethics & compliance
The work floor (partially) takes charge
IT has been democratizing for some time, with new AI tooling providing an unprecedented acceleration in this area, due in part to the great ease of use of a range of new applications. Employees can design their own work environment as they wish, without knowledge of programming languages (no-code/low-code). This not only leads to great creativity in optimising processes, but at the same time offers a solution to the shortages of programming skills in the labour market. The most fundamental consequence of this democratization is that it is the prelude to an organisational model in which decisions are made (much) more frequently on the shop floor.
Read more about AI and process optimization
Responding to AI requires flexibility and empathy
There is no such thing as an ‘AI organisational culture’. That is too narrow a vision. There does exist an organisational culture that can deal well with turbulent and rapidly changing environments with ever-evolving issues. People still make the difference here. With AI taking over (parts of) people's thinking, the distinction in the market is made through other competencies. Think of curiosity about technological developments, empathy for (new) ethical issues, being able to guide people through uncertainty, and the ability to make sense of a world which is in a state of constant flux due to technology. These aspects can be summarised as resilience.
Read more about AI and culture & change
Anticipating AI requires both quick wins and fundamental redesign
Every organisation can start working with use cases immediately with the currently available AI technology. These often deliver value from day one and have the nice by-product of stimulating the organisation to do more (from product-push to organisation-pull). Alongside this 'fast lane' that requires relatively little preparation, however, it is also necessary to go back to the drawing board to prepare the organisation for the more far-reaching consequences of the advance of AI. In a nutshell, executives need to pay attention not only to urgent but also important things. After all, the consequences of the rise of AI are particularly fundamental in the somewhat longer term, but it is precisely these long-term effects that are less immediately felt. However, proper preparation for this cannot wait until tomorrow, because this includes redesigning the operating model, IT architecture, data management, governance, capabilities, compliance and other issues. In terms of content, this preparation also involves leveraging as much as possible what we now know about (future) technology and experiences in other organisations.
Read more about AI and strategy
Tomorrow's winners bet on collaboration in ecosystems
Using a single data source often has limited value in data analysis. It is precisely the combination of data sources that makes it possible to create value (by increasing efficiency/effectiveness). For example, think about how we can greatly improve the care pathways of individual patients through the seamless use of data from the different organisations involved around the patient, or how we can make container flows in seaports more efficient, and numerous other domains. Therefore, the true value of AI – which needs data as ‘food’ to show its value – will often only come into its own in concepts where the analysis of multiple data sources is possible. This is precisely why federated ecosystems – with some autonomy of participants but clear agreements on collaboration – are so important. Parties must now have a strategic vision of the place they want to fulfil in such an ecosystem.
Read more about AI and ecosystems
Our insights
With the increasing use of artificial intelligence, as well as the complexity of the technology, it is not surprising that organisations are growing in need of knowledge, expertise and insight around how AI works. We have listed the key insights for you below.
AI and Process Optimization
IT was once synonymous with rigid, hard-to-adapt systems. With the advent of new generations of AI applications, however, a flexible world is emerging in which users can largely shape their processes themselves. The trick is, on the one hand, to make the most of that freedom so that users can realise their ideas immediately, and, on the other, to do so in the context of a collaboration that transcends departments and processes.
AI and Culture & Change
The success of AI is not about technology. It's about people who can extract value from this technology and, by extension, an organisation with sufficient resilience, curiosity and adaptability. And exactly at the point of building such an organisation, AI can provide valuable insights.
AI and Ethics & Compliance
Every new technology has a bright side and a not-so-bright side, and AI is no exception. This groundbreaking technology offers many organisations attractive strategic potential, but it also brings with it new issues of reliability and ethics, among others – and consequently, challenges in building trust in the technology.
AI and Privacy & Regulations
The landscape of laws and regulations surrounding Artificial Intelligence is evolving rapidly and posing challenges to organisations. Part of that challenge involves efficiency in complying with a plethora of regulations, but at least as important is responding adequately to societal expectations.
AI and Audit
Society cannot function without trust, and the accountant, as auditor, plays a key role in that trust. With Artificial Intelligence, the accountant's work can provide an entirely new level of assurance and thus respond to what society expects.
Generative AI
Artificial Intelligence is bringing about a total transformation of the organisation, and at the tipping point of that transformation, many traditional conventions are falling overboard. What doesn't change is that organisations still face the question of how to create value – now and in the longer term. That question must remain central to the deployment of AI.
Artificial Intelligence Events
KPMG helps you. With the right insights. Concrete actions. Genuine solutions. Also regarding the topic of Artificial Intelligence. Get inspired at one of our AI events.
Adding value with Artificial Intelligence
It is certain that there are still many questions and uncertainties about the future impact of AI on society. For example, what will the new cooperation between humans and machines look like in an era where AI takes a leading role? Will humans primarily train the AI models, and if so, how ethical is it that in doing so they may make themselves obsolete? And how can we ensure that AI continues to function responsibly?
KPMG explores these issues with clients, defines an agenda with them to confidently enter the transition, and prepares organisations for an era of AI. By continually starting from ‘connecting the dots’ of the aforementioned perspectives, we avoid an opportunistic and/or fragmented approach and arrive at a structural and holistic strategy. Get in touch with one of our experts or schedule an AI Workshop.
