Start with the problem, not the technology: How to succeed with AI

"In my lifetime, I’ve seen two demonstrations of technology that struck me as revolutionary. The first time was in 1980, when I was introduced to a graphical user interface... The second big surprise came just last year... I knew I had just seen the most important advance in technology since the graphical user interface.”

The greatest technological advancement since the launch of the graphical user interface—such was Bill Gates' verdict when he and the rest of the world experienced ChatGPT for the first time in 2022. Since then, it’s been nearly impossible to attend a conference or open LinkedIn without hearing or reading about how artificial intelligence (AI) will transform nearly everything.

Economic analysis estimates that the use of AI and digital technology could increase Norway’s economic output by NOK 5,600 billion by 2040. AI undeniably has the power to create a wave of opportunities for most businesses, regardless of size or industry.

For this to become a reality, more Norwegian companies need to start harnessing the power of one of the most advanced technologies of our time to drive new innovation, new services, and digital solutions.

According to Forte Digital's latest survey, Forte Pulse 2024, many companies struggle with exactly this. The study, aptly named "AI Seeks a Market," reveals that only 42 percent use predictive analytics to anticipate market trends or customer behavior.

In other words, few companies manage to translate AI into business value. Artificial intelligence as a value driver thus remains on the sidelines in many organizations, lacking concrete applications for innovation and revenue generation.

The survey shows that the most mature organizations are those able to position AI technology within the context of customer and business value. They have a clear understanding of which business needs AI should address or improve and view AI as a cross-functional effort.

It’s hard not to be captivated by the weekly LinkedIn updates about generative AI. At times, it seems as if AI is thrown at nearly any problem, with the hope that it will solve every challenge. More should consider the opposite approach: start with the problem, and find the tools, processes, or technology needed to solve it.

“You've got to start with the customer experience and work backwards to the technology,” Steve Jobs said back in 1997. This issue is by no means new, but it’s a useful reminder, especially now as AI is advancing at a rapid pace.

Explore problems and customer needs, not just the technology. AI is not a magic box delivered by the tech department that will instantly create business value. For now, it’s "only" a powerful tool that allows companies to create customer and business value by solving problems faster, better, and in new ways.

Today, AI can be used for everything from automation and personalization to predictive analysis of customer behavior and content production. What your business can use AI for depends on its specific business needs.

In this way, AI imposes new demands on creativity and innovation. The technology has never been more accessible or easier to work with. Before jumping on the AI bandwagon, you should have a clear understanding of the business need or problem you aim to solve or improve. Applications are more about imagination and creativity than simply the technological possibilities.