EDITOR ’ S QUESTION

Where does AI fit in the business ?

It is important to first understand the company ’ s readiness for the adoption of generative AI . Particularly , business leaders need to align on the risk appetite for using generative AI and how it fits into the wider business strategy . This will in turn enable the business to determine company-wide policies and guidelines . For other C-suite executives , AI isn ’ t about algorithms but tangible outcomes . To demonstrate this , commission an internal assessment on generative AI ’ s projected returnon-investment ( ROI ) for your business . For example , quick wins could focus on productivity improvements but what is the potential for revenue generation that can offset the adoption costs ? A Gartner research paper found that by 2028 , half of enterprises that have built large AI models from scratch will abandon their efforts due to costs , complexity and technical debt in their deployments . CIOs therefore need to carefully balance the need for generative AI and their companies ’ longterm business strategy .

To build or not to build ?

“ Should we buy or build ?” is a common decision CIOs have to make when it comes to developing generative AI capabilities . The fundamental rule holds true : a company should allocate resources based on where it can establish a distinctive advantage or maximize internal resources . Hence , what is also important is to determine if existing employee skillsets are aligned with the requirements . While there are many advantages to using off-the-shelf AI software , there are times when building software may make more sense due to domain expertise in niche industries or the team ’ s ability to create core AI tools that provide distinct differentiators from competitors . For example , at TDCX , we harnessed our current capabilities to create an AI-based solution and integrated it with our client ’ s system to monitor customer feedback . This enabled us to identify the causes of customer attrition and subscription cancellations , all while maintaining cost efficiency and creating further moats around our proprietary tech approach . In order to make the best decision for their companies , CIOs must understand the capabilities and limitations of their team and they should also consider the maintenance costs of supporting their AI tools . By carefully evaluating the different aspects and factors involved when choosing between buying or building AI tools , CIOs can arrive at an informed decision that aligns with the needs of their organization . Another useful point to consider for emerging technologies like generative AI is that they are evolving toward maturity – and the people supporting these emerging technologies must also continue to evolve with the technology and keep up with its progress .

Ownership of the generative AI strategy ?

The success of a generative AI strategy relies on having an empowered team that is accountable for delivering on the project . Having a dedicated generative AI team or a project manager within an agile team serves as a driving force on product development and roadmap alignment to achieve business goals . To get started , the team can begin by focusing on a limited set of high priority use cases and gradually broaden their scope as they develop reusable capabilities and gain insights into best practices .

By leveraging generative AI , companies can enhance their efficiency and capabilities in many areas , such as conducting in-depth customer data analysis , creating personalized CX journeys and targeted marketing strategies . Such initiatives will ultimately help in boosting customer loyalty and revenue . In doing so , CIOs can not only adapt to advances in AI but also differentiate themselves as a business leader . The fastchanging business landscape demands that CIOs go beyond the tech domain and into business use cases . With a clear business problem statement and tech strategy , CIOs are on a sure path to help companies drive cost savings , operational efficiency and deliver better experiences . p

BYRON FERNANDEZ , CIO AND EVP , TDCX

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