Habits, Stagnation, and Enterprise AI

Habits can lead to either positive or negative outcomes that define our identities as individuals, and this principle also applies to organizations.

Why it matters: When these habits restrict action, individuals or companies risk stagnation.

• The danger of stagnation is that while they remain unchanged, others around them continue to progress, leading them to fall further behind.

• Often, out of fear, lack of discipline, and a desire to maintain the status quo, both companies and individuals fail to act in their own best interest.

Between the lines: As the CEO of a financial AI company, I frequently engaged in discussions with executives from leading commercial banks and investment funds.

• The primary challenge was helping them break free from the belief that their current practices were sufficient.

• In many cases, it was only when I mentioned a competitor who had made a strategic change before them that they began to see the need for action.

Yes, but: Later, as I spoke with leaders from other industries, I realized that these financial giants were not alone in their mindset.

• Most corporate leaders struggle to balance their desire for growth with the implementation of the necessary changes to achieve it.

• This is understandable, considering that people often fear failure to the extent that it prevents them from making sound decisions.

Catch up quick: Economic indicators can change, market sentiments fluctuate, and it's common to feel tempted to "wait and see" before committing to transformative initiatives.

• However, this approach can be risky, especially in the context of digital transformation, as it fundamentally misrepresents the nature of economic cycles and the strategic importance of AI.

• AI should not be viewed as a discretionary expense to be put off during tough times; instead, it is a key driver of future resilience, efficiency, and competitive advantage.

• Companies that invest in Enterprise AI now, regardless of the current economic conditions, are positioning themselves for a much stronger future.

State of play: The truth is that there is no perfect moment to launch Enterprise AI or any organization-wide initiative.

• In a strong economy, AI can significantly boost growth by optimizing operations, speeding up product development, enhancing customer experiences, and identifying new market opportunities.

• Conversely, in a challenging economy, AI becomes a crucial tool for survival and recovery.

• It can lead to substantial cost reductions through automation, improve forecasting and risk management, and unlock efficiencies that would otherwise be unattainable.

Zoom in: Delaying AI adoption in hopes of better conditions is counterproductive.

• By the time the "ideal" moment arrives, competitors who invested in AI will have gained a significant advantage, making it harder to catch up.

• The benefits of AI do not increase linearly; they compound over time, giving early adopters a significant head start.

Yes, but: Executives who are still undecided about adopting AI need to shift their perspective from viewing it as a discretionary investment to recognizing it as a strategic necessity.

• By building strong AI capabilities now, companies can not only withstand future economic challenges but also emerge from them stronger, more agile, and more competitive.

Go deeper: Contact Todd Moses & Co for a free book on Enterprise AI adoption, and to learn more about AI Literacy training for your team.