The world of artificial intelligence (AI) is multifaceted and will continue to expand with many new technologies coming to market. In reflecting back on the evolution of on-premise technologies and then later SaaS systems, we anticipate the rise of three predominant types of 3rd party AI applications: Purpose-built AI technology, Embedded AI, and AI Platforms. In general, each has its own benefits and drawbacks, providing businesses with tools to leverage AI's full potential. Understanding these types of technologies will help CFOs and IT leaders develop their AI strategies and plans. Let's delve into the specifics of these AI types, evaluating their benefits and drawbacks.
These AI tools are tailored for specific uses like digital marketing, accounting, or data analytics, streamlining tasks and boosting automation in areas that were traditionally manual or cumbersome.
These AI tools will allow companies to quickly adopt AI and start reaping the rewards at a reasonable cost. However, these tools may limit AI’s long-term value if companies adopt too many of these point solutions.
These AI tools are integrated into existing SaaS applications like Salesforce or NetSuite, enhancing their capabilities and streamlining operations.
These AI tools will allow companies to add AI to their existing tech stack and realize more value from their existing systems. They will also make the adoption of AI the easiest. However, it will likely take longer to get access to meaningful AI capabilities, and AI may be highly constrained as it will sit within the walls of pre-built systems with predefined uses.
These are versatile AI systems that come with many capabilities and without a predefined use. They can be molded to fit across various organizational functions and processes.
These AI tools will give companies the broadest and most expansive AI capabilities with the power to leverage the value of AI across the organization fully. However, these tools are some time away from being available and, when available, will likely require fairly large and complex programs to truly derive value from the capabilities offered.
AI's future landscape is bound to be rich and varied, with each of the three types catering to different business needs. As CFOs and IT leaders develop their AI strategy, they should consider the above to help determine the path they should take to avoid creating an environment rich with AI but poor in automation and value. Executives should also create plans that are adaptable so they can course correct as new AI technology becomes available.
In navigating the dynamic landscape of artificial intelligence, understanding the nuances of Purpose-built AI, Embedded AI, and AI Platforms is crucial for informed decision-making. Each of these AI types offers a unique set of advantages and challenges, empowering businesses in distinct ways. To embark on this transformative journey, we encourage CFOs and IT leaders to seek expertise and guidance from specialists well-versed in these AI domains. At Connor Group, our AI subject matter experts stand ready to collaborate with you, providing practical AI solutions tailored to your organization's needs. By leveraging their insights and expertise, you can not only stay ahead of the AI curve but also build a powerful technology strategy that maximizes automation and value. As AI continues to evolve, let's embark on this exciting journey together, adapting and thriving in a world of boundless possibilities.
If you're seeking to develop a strategy or explore AI's benefits, contact Connor Group. We'll share our experiences and help you create a practical AI and automation roadmap.
Managing Partner, Client Experience
Partner, Automation and Analytics Leader