How to use AI for innovation – tips from an expert

New technology initiatives fail more than 80% of the time. That is because the initiative lack vision, structure, governance and the correct buy in to scale. AI expert Danilo McGarry spoke about the key concepts surrounding innovation, particularly in the context of digital transformation and the integration of artificial intelligence (AI) into business practices.

McGarry defined innovation as the process of turning ideas into marketable products, emphasising the necessity for companies to adopt a forward-thinking approach amidst the Fourth Industrial Revolution, characterised by rapid technological advancements.

He also touched upon the anticipated emergence of Artificial General Intelligence (AGI) within the next few years and its potential to disrupt various professions. McGarry highlighted AI’s projected economic impact, which could generate trillions in value, urging companies to develop strategies that align innovation with their business objectives.

Moreover, he underscored the importance of starting innovation initiatives on a smaller scale, encouraging companies to promote a culture of agility and iterative development. Key action items were identified, including the need to embed AI into operations, explore AGI’s implications, and establish a framework for measuring innovation success.

Key takeaways

Understanding innovation

• McGarry’s past experiences in AI with Citigroup and UnitedHealth Group highlight the importance of AI in modern business.
• Focus on digital transformation and embedding technology into company culture.
• Consider how to embed AI into company culture and operations for innovation.

The Fourth Industrial Revolution

• Current advancements in AI and technology mark the Fourth Industrial Revolution.
• The speed of change is unprecedented, creating opportunities for innovation.
• Companies should leverage this wave of innovation for competitive advantage.

The rise of AGI

• AGI is expected to be available within the next four to five years.
• AGI will significantly impact various professions and industries.
• Concerns about AI capabilities and the unknown nature of AI development.

Economic impact of AI

• AI is projected to generate 7 to 15 trillion dollars in economic value over the next eight years.
• AI’s potential economic impact surpasses other technologies, including green initiatives.
• Companies must adapt to harness AI’s benefits for growth.

Implementing AI in business

• Companies need a clear strategy and governance for scaling innovation.
• Innovation should be a central pillar in company objectives.
• Utilising frameworks like OKR (Objectives and Key Results) can help align innovation with business goals.

Starting small with innovation

• Begin innovation initiatives on a small scale to test concepts.
• Implement a clear strategy for innovation within the company.
• Reinvest the benefits of successful projects into new initiatives.
• Foster a culture of agility and quick iteration in innovation.
• Create a framework for measuring the success of innovation initiatives.

AI expert Danilo McGarry spoke at the Tehnopol’s AI development program stars’ event in December. The summary of his presentation was made with the help of AI.