How to use AI to reach operational maturity

Just like the Industrial Revolution or the dot-com boom, AI is shaping the future of how we work and what we do. The massive shifts we are witnessing in technology, consumer preferences and climate change are redefining how the world operates. We are only just beginning to see the full potential of AI and its unique value to each industry, including the public sector. As this technology evolves at pace, government agencies and the public sector need to move quickly, but also with caution, to develop an AI strategy or they risk falling behind and not delivering to citizen expectations. Such extraordinary times call for an unprecedented response and a reinvention of the way the sector operates. But while some organisations in the public sector are rising to this challenge, we’re witnessing a widening gap between AI adoption and effective utilisation.

Addressing the gap of operational resilience

AI operational maturity is the evolution and development of an organisation’s capabilities and processes to effectively integrate and utilise artificial intelligence in day-to-day operations. This could involve stages or levels of maturity that organisations progress through, and we can split this across six capability measures: data, analytics and automation; artificial intelligence; leading practices; business-tech collaboration; talent strategies; and stakeholder experience.

The benefits of lifting AI operational resilience across these six capabilities include outcomes such as being 34% better at reducing energy consumption and greenhouse gas emissions and 25% more effective at delivering equality of opportunity, as well as in the private sector, delivering 2.2x the shareholder return.

The issue is, while many organisations in Australia’s public and private sectors are already using AI to bolster their operational resilience, only 2% are using it effectively. And with AI counting as a business digital investment priority, the biggest challenge leaders face today is optimising output.

Juggling these demands means keeping the big picture in mind — and not just focusing on financial measures. Enterprises, government agencies and vendors need to take a fresh approach to unlocking their internal talent and committing to business goals. Sustained growth is rooted in strategic transformation and AI maturity comes from mastering a more balanced approach across integrating the six capability measures — not only in data and AI, but also in organisational strategy, talent and culture.

Decision-making needs to be driven from the top, backed by senior leadership. By clearly outlining the organisation’s goals and objectives for adopting AI, operational reinventors ensure that AI execution aligns with overall business strategy. Reinventors invest in their workforce, to educate and train them about AI technologies, benefits and potential use cases. An organisation is only as good as its people; therefore, they must be empowered with the knowledge and skills needed to effectively use AI tools, which would then foster a willingness to embrace AI-driven solutions across all levels.

This landscape is fast-paced and highly competitive, and each facet of daily operations must be transformed, with new ways of working and engaging with the public and new opportunities for growth. By connecting people and assets to the appropriate technologies, the synergy between human expertise and AI capabilities can lead to exponential growth in operational efficiency. But is this just easier said than done?

Laying the groundwork for sustained success

To embark on the path towards AI adoption, it’s crucial to start with a strong foundation. This entails a comprehensive assessment of capabilities, technology infrastructure and data readiness. Areas need to be pinpointed where AI can make a meaningful impact, and those areas need to align with the government department or agency’s overall strategy. A clear understanding of the starting point is necessary to create a roadmap that ensures a seamless integration of AI initiatives into existing operations.

Effective adoption and utilisation of AI at scale across an organisation is an ongoing process that requires continuous learning, adaptation and refinement. It is necessary to regularly assess the performance of AI models, monitor their impact and make adjustments. It’s essential for governments and the public sector to align AI initiatives with their unique context and long-term growth strategy.

While the public sector has different rules and regulations to adhere to, it can also take insights from the experiences of private companies to improve and transform its own operations and growth strategy. A great example is a large Australian telco that deployed AI to quantify the effectiveness of its individual marketing initiatives. The organisation was able to accurately and rapidly measure thousands of different marketing metrics to create a world-class marketing performance insights capability that can be applied across the business. These insights enabled them to optimise the allocation of marketing spend, messaging and media, resulting in quick, easy gains. Once the foundations are in place, the ability to scale across the business is far more attainable.

AI isn’t just a buzzword…

It’s a strategic imperative that will drive profound shifts in how government entities operate and deliver value. And in this current landscape, it’s certainly one that forward-thinking public service leaders cannot afford to overlook. By seamlessly integrating AI-driven insights into decision-making, the public sector can unlock unprecedented efficiencies, harness untapped opportunities, and elevate customer experiences, with a resounding impact on profitability and sustainable growth.

Image credit: iStock.com/metamorworks