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The AI Transformation Mandate, Part I

Knownwell

AI transformation has emerged as a critical mandate for companies striving to remain competitive in today’s rapidly evolving business landscape. This is especially true in middle-market, PE-backed companies, where the economic pressure to drive operational excellence and meet aggressive growth targets is intense. And as anyone involved in these businesses knows, with significant change comes significant challenges.

In this special two-part episode of AI Knowhow from Knownwell, CEO David DeWolf and Chief Strategy Officer Pete Buer delve into what middle market companies must do to navigate the AI transformation successfully. And most importantly, they cover what Pete’s research shows about where companies are currently best—and least—equipped to handle the AI transformation.

Understanding the AI Transformation Mandate

Pete’s research includes an AI transformation readiness assessment that helps organizations understand their strengths and weaknesses across five key dimensions. As David and Pete discuss, the assessment and related advisory services form the foundation of a new company Pete is launching called NordLight.

More than a year’s worth of respondents from 50+ companies has yielded results that many executives may find interesting. CEOs, who regard AI as a top priority, are tasked with leading this charge, charting a new path that aligns with organizational goals while keeping the day-to-day operations of the business on track.

Yet, perhaps surprisingly, the function that must be most ready to meet the demands of the AI transformation is HR. The bad news? This is also the function that our research shows is the least ready of all.

The Role of HR in Steering AI Transformation

HR leaders, once far removed from technology decisions, now need to be included at the forefront of this transformation. The AI revolution necessitates not just technological shifts, but a significant transformation in workforce strategy.

Pete emphasizes the critical role HR plays in talent management, highlighting how AI transformation hinges on companies changing the way work is done and managed. The journey involves rethinking workflows, skill sets, and structures, ensuring that talent resources align with AI capabilities.

And, as Pete says, this reimagining of how work gets done isn’t something that companies can figure out in a few short months. “Getting people to fundamentally change the way they work, and learn new skills and work in new structures, and functions and processes is eighteen months of work, not eight weeks’ worth,” he says.

Companies must pivot from a passive approach to AI to actively investing in their team’s AI readiness, addressing skills gaps, and preparing for future workforce demands.

Guest Interview: Jon Evans from Impact Networking

For this week’s guest interview, Jon Evans, VP of Managed Digital Transformation at Impact Networking, shares practical insights into integrating AI into organizational processes. Highlighting the importance of education, Jon suggests starting with understanding what AI can do for a company and progressing to infrastructure readiness and use case prioritization. His framework provides a pragmatic approach to unraveling the complexity of AI transformation.

All too often, Jon says, companies start with the use cases where they want to deploy AI but then quickly find that they don’t have the data or infrastructure to support those use cases. “From education to infrastructure to use case prioritization, and then finally to the work of doing,” he says is the best approach to ensuring companies are getting the most out of their AI initiatives.

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Show Notes & Related Links

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