Expert Identifies Common AI Transformation Mistake
An experienced consultant warns that many executives err by focusing on superficial metrics rather than core business value when implementing AI.
Many companies aim to be perceived as AI leaders, a goal that has created a significant problem identified by Mikael P. Laaksonen, who has years of experience guiding companies through AI transformations. He terms this issue 'AI washing'.
AI washing occurs when organizations celebrate increased response times or new platform adoptions, while crucial outcomes like customer retention, employee experience, and decision-making quality decline. Laaksonen emphasizes that before approving any AI initiative, executives must be able to answer three questions: Will it improve the customer experience? Will it help employees do more meaningful work? Will it help leaders make better decisions?
If the answer to all three questions is not affirmative, the investment is producing activity, not value. According to the Entrepreneur article, such initiatives can lead to wasted resources and a deviation from strategic business objectives.
Laaksonen advises leaders to prioritize genuine business benefits when implementing AI, rather than focusing on short-term or superficial metrics. Creating real value requires strategic foresight and a clear understanding of how AI supports the company's core goals.