Momentum Swings: Cooling Market Won’t Cool Appetite for AI
-
September 10, 2024
-
Investors may have recently grown slightly more cautious on AI, if a recent stock-market slump is any indication.
But there is a saying that short-term stock market behavior does not always capture longer-term trends. Based on my gleanings from the Reuters Momentum AI conference in San Jose, that axiom is true with AI as well.
I attended more than 15 sessions and panel discussions over two days in mid-July and came away more convinced that AI is one of the biggest revolutions in our lifetimes. While there is a long way to go, the technology could kickstart growth and opportunities and transform the way we work and live.
As Chief Growth Officer at FTI Consulting, these are a few of the questions I have been asking:
- How do we use our existing AI expertise to come up with new, unique solutions for clients?
- What guidelines and governance are needed around the use of AI?
- What data is being used to train the AI, and how diverse and representative is it?
- How do we attract the next generation of AI talent?
Although the conference did not answer every question — nor would I have expected it to — here are a few insights and learnings that may apply to your organization.
Embrace Exploration
Exploration and innovation were common themes I heard throughout the conference. In multiple discussions, panelists remarked that not every use case can be connected to an immediate return on investment. Companies should be willing to explore and invest in AI technologies.
Exploration means there may be failures along the way. These should be embraced. This is an approach we are taking at FTI Consulting: testing new use cases for our people and our clients, learning what works and, to borrow a term from the tech and startup worlds, “failing fast” or pivoting when something doesn’t work.
The 80/20 Rule Applies to AI, Too
As my colleague Sumeet Gupta wisely pointed out during his panel, 80% of the effort on AI — or any digital transformation, for that matter — should focus on non-technical aspects. You need to spend time on managing risk, regulatory compliance and, most important, user adoption and change management.
Focus on the user journey. How will the change impact users? What do they need to know? How will AI help them do their jobs more effectively?
AI, Governance and Regulation
With innovation often comes the need for regulation. Listening to Rep. Anna Eshoo of California, co-chair of the Congressional Artificial Intelligence Caucus, I could see that there will be regulation of AI in the United States.
The question is: how much, and what form will it take?
Global regulation is diverging, with Europe taking a more active role at the moment compared to the United States. Proper regulation balanced with innovation can provide stability and increase public trust in AI, which remains a mystery to many, as Congresswoman Eshoo said.
Bias is one area of concern. The models are only as good as the data we feed into them. Business leaders must be on guard for potential bias, which could quickly lead to a reputational crisis for an organization.
Concerns also exist that AI may become controlled by a few large companies. To address this, Congress is working on legislation called the CREATE AI Act, which seeks to democratize AI. This act aims to provide AI tools and resources to smaller companies and researchers, ensuring broader access across various sectors.
Where Do We Go From Here?
We have experts at FTI Consulting who have been working with AI since before it was a new buzzword, and we continue to look for new ways that we can harness its ability to improve our organization and help our clients.
The way I see it, AI will not replace real-world, hands-on experience. It will enable us to unlock value — even if the markets have temporarily cooled on the AI hype.
Related Insights
Published
September 10, 2024
Key Contacts
Global Co-Leader of Corporate Finance & Restructuring, Chief Growth Officer of FTI Consulting