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Leading the AI-driven future

by August 10, 2025
August 10, 2025

IN BRIEF:

• Organizations should consider the integration of artificial intelligence (AI) technologies to transform their operations, requiring a comprehensive redesign of business processes to emphasize agility and innovation.

• Investing in employee training and upskilling is crucial to address the growing demand for AI skills, enabling companies to enhance their workforce capabilities and maintain a competitive edge.

• A balanced approach to AI investment — combining ready-made solutions with custom development — allows organizations to leverage existing technologies while tailoring solutions to meet specific business needs.

As artificial intelligence (AI) becomes a pivotal force in business transformation, companies are increasingly recognizing its potential to fundamentally reshape their operations. Strategic deployment of AI is vital for organizations seeking to evolve into intelligent operations powered by AI. This evolution transcends mere task automation; it requires a comprehensive redesign of business processes to prioritize AI integration. By embracing this transformation, companies can innovate and strengthen their positions in the evolving landscape of AI.

Despite a general understanding of AI among business leaders, many remain reluctant to implement it actively. To bridge this gap, leaders should engage with AI in several impactful ways.

ENVISIONING FUTURE BUSINESS LANDSCAPES
The potential for disruption in business models lies in the combination of traditional AI, generative AI (GenAI), and other emerging technologies, including mobile applications, the Internet of Things (IoT), and blockchain. The integration of these technologies can provide advantages that exceed the capabilities of any single technology, creating a synergy that fundamentally redefines legacy business models.

In various sectors, including agriculture, retail, and business process outsourcing (BPO), there are significant opportunities for AI integration. For instance, AI can enhance agricultural productivity through precision farming techniques that utilize data analytics and IoT devices to optimize crop yields. In the retail sector, AI-driven analytics can provide insights into consumer behavior, enabling businesses to develop personalized marketing strategies that resonate with local preferences. AI in retail is also used for personalized product recommendations, inventory management, predictive analytics, customer service, and enhancing in-store experiences with tools like virtual try-ons, chatbots, and smart mirrors.

An effective strategy for navigating this disruption is to engage in future-back planning, which involves envisioning the future state of the industry and developing a roadmap to build the necessary competencies for success.

BUILDING A ROBUST DATA FOUNDATION
A strong data infrastructure is essential for organizations looking to leverage data effectively. This infrastructure encompasses the systems, technologies, and processes that support data collection, storage, and management. As organizations invest in AI, establishing a solid data foundation becomes increasingly important.

With the growing volume of data, the infrastructure must scale efficiently to handle increased storage and processing needs. A well-structured data infrastructure enables seamless integration of diverse data sources, promoting interoperability among data systems and AI tools. This can help accelerate AI adoption and enhance collaboration across teams.

ADDRESSING TALENT AND TECHNOLOGY GAPS
The need for skilled AI professionals in the workforce is becoming increasingly urgent. According to the EY AI Anxiety in Business Survey, many employees express a desire for more training and upskilling opportunities related to AI, yet there is a prevailing concern that existing opportunities may not be sufficient. This highlights the importance of investing in employee development to cultivate AI skills within the organization. By enhancing the capabilities of their current workforce, companies can accelerate AI adoption and gain a significant competitive edge.

Moreover, organizations must prioritize attracting and nurturing talent proficient in AI technologies. This focus enables operations to be driven by professionals who can fully leverage AI’s capabilities, positioning the business at the forefront of technological advancement. On the technology side, companies often face the dilemma of whether to build, buy, or adopt a hybrid approach to AI solutions. Thoughtful planning and discussion are essential to navigate this decision. While some organizations may hesitate to invest in generative AI applications, believing their existing systems will eventually incorporate these functionalities, pursuing customized AI tools tailored to specific needs can yield substantial benefits.

In the EY AI Pulse Survey, 95% of senior leaders in the US reported that their organizations are currently investing in AI, emphasizing the necessity of a diversified investment strategy. This strategy should balance the acquisition of ready-made AI products with custom development, allowing for tailored solutions where necessary while also leveraging the speed and cost-efficiency of pre-built technologies.

EMBRACING AGENTIC AI FOR SIGNIFICANT ADVANCEMENTS
Agentic AI is characterized by its ability to autonomously perform tasks, make decisions, and interact with users and systems. This technology leverages large language models to adaptively plan and achieve desired outcomes. Unlike traditional AI, which primarily executes predefined tasks, agentic AI can analyze situations and make informed choices.

As organizations integrate intelligent agents into their operations, they are witnessing significant improvements in customer engagement and operational efficiency. For example, an inventory optimization agent in the retail sector can adjust strategies based on real-time data, enhancing customer satisfaction while achieving operational goals.

In the future, collaboration between agents and humans is expected to become more prevalent, with agents gaining greater autonomy. This shift will mark a transition toward a model where AI plays a central role in business operations.

Embracing AI across all facets of the enterprise is essential for organizations aiming to thrive in a rapidly changing landscape. By fostering a culture of innovation and experimentation, companies can empower their teams to adopt new technologies and methodologies.

PURSUING ONGOING GROWTH
Achieving strategic AI maturity allows organizations to become agile entities characterized by seamless decision-making and a relentless pursuit of innovation. By leveraging digital advancements, these organizations can respond swiftly to market changes, enhance processes, and drive sustained growth, positioning themselves for success in the evolving business landscape.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the author and do not necessarily represent the views of SGV & Co.

 

Ryan Gilbert K. Chua is the consulting leader of SGV & Co.

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