The AI pyramid is a concept used to structure and prioritize the use and value creation of artificial intelligence (AI) within a company. This model helps to recognize how AI applications can create different types of value at different levels of the company.
Lower level: Supporting processes -> MUST-HAVE
At the lowest level of the AI pyramid are the supporting processes of a company. These include areas such as human resources (HR), finance, accounting and other administrative functions. In these areas, the use of AI can help to automate routine tasks, increase efficiency and reduce errors.
For example, AI-controlled chatbots in HR can answer frequently asked questions or AI systems in accounting can process invoices automatically.
Most companies are currently introducing AI at this level, as many best practices already exist here. This means: Here must a company must be active in order not to be left behind. In a few years, all competitors will have modernized these processes with AI.
Middle level: Central processes and functions
In the middle of the pyramid are the company's core processes and functions that contribute directly to sales and the core business. Here, the use of AI can help to increase productivity, improve decision-making processes and personalize the customer experience. Examples of this include AI-supported systems for optimizing the supply chain, predictive maintenance in production or personalized recommendation systems for customers.
Upper level: Strategic differentiation
This is where the music plays: At the top of the AI pyramid are applications that enable strategic differentiation and give the company a competitive advantage.
The aim here is to use AI to develop innovative products and services, create new business models or open up completely new markets. At this level, AI can help to fundamentally change the way a company creates value and secure sustainable competitive advantages.
This means that this is where the greatest potential lies to differentiate yourself from the competition in the long term with AI! Because this is core business.
Recommendation
The AI pyramid provides a framework for strategically planning and prioritizing the implementation of AI technologies in the company. It helps decision-makers to assess where the use of AI will provide the greatest benefit, from increasing efficiency in supporting processes to optimizing core functions and creating strategic advantages at the top.
My recommendation: Take care of the lower level at the beginning and learn from practical application. At the same time, start applying AI in the central value chain at an early stage. Use the lessons learned from the lower level to accelerate your core processes effectively with AI.
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