Why the AI TOM is needed as CEOs ride the AI wave to their Operating Model’s Future.

AI is impacting everything and everywhere in the world. AI and automation trends are undoubtedly becoming a game changer for companies across all industries as they are currently disrupting the business operating models that enable companies to stay competitive in today’s fast changing technology landscape.

For decades, technology and AI’s interaction processes have been paving the way for the AI disruption. The evolution process of AI capabilities started as simple rule-based systems that included the integration of Machine Learning (ML) and Natural Language Processing (NLP). Both are a basic type of AI model capable of performing very specific tasks, improving the decision-making process, resolving problems and enabling users’ interactions.

But, over time, the AI systems and capabilities have evolved into more sophisticated and complex multimodal AI agents, to the extent that they have now become not only capable of understanding, processing and integrating multiple types of inputs and information such as text, images and audio simultaneously, but   have also developed advanced autonomy and real-time interaction capabilities. They can currently operate independently, rationalise and make independent and real-time decisions without any human intervention, enhancing their effectiveness and versatility.

According to Gartner’s recent report, “Top Strategic Predictions for 2025 and Beyond”, disruption is coming in the form of AI agents or agentic AI systems.

Why should CEOs pay attention? AI agents not only offer significant advantages in efficiencies, decision-making processes  and customer interactions, but these advanced AI capabilities are also becoming part of a major strategy implementation project and AI transformation that will drastically disrupt organisations’ operating models. Thus, those organisations that implement agentic AI strategies may gain competitive advantage by leveraging their advanced AI capabilities, disrupting their operating models, achieving cost-reduction and economies of scales. However, the consequences of senior executives missing the AI turn today may take a turn for the worse tomorrow as their business can become outpaced.

The AI agent system strategy has become a fundamental part of new and disruptive service delivery proposition, which will considerably  affect organisations’ operating models, cost structures and competitive dynamics. The new era of AI strongly indicates that all aspects of an organisation’s operating models and organisational structures will be disrupted. Therefore, CEOs must be ready to assess and embrace how much better or worse the AI strategies can make their organisation’s operating models.

What should CEOs do to survive the AI disruption? Organisations may need to adopt an AI-driven operating model that can allow them to keep AI strategies and capabilities aligned with the broader business goals, and to keep driving efficiency, innovation and competitive advantage. What’s more, when it comes to making the best of AI’s full potential and their own investments, CEOs may also need to ensure that their organisations have advanced their AI capability maturity enough to achieve AI transformation, superior growth and competitive edge.

In the process of achieving success, CEOs must fully be able to rely on a solid executive framework. The AI TOM can help them to ride the AI wave to their operating model’s future.

The AI TOM framework can be defined as a blueprint for how an organisation’s operating models should function in an AI-transformed future, outlining its ideal state of operations, technology, services, processes and organisational structures.

In the ever-evolving landscape of AI and automation, the AI TOM is necessarily emerging as a pivotal force in helping organisations to successfully implement AI transformation, innovation adoption, risk mitigation and scaling artificial intelligence.

The framework holistically depicts a detailed capabilities landscape and a roadmap for achieving a desired future state of an AI-driven operating model, where technologies and AI capabilities are seamlessly integrated to enhance efficiency, agility and customer experience.

Through the AI transformation, the AI TOM can help to successfully execute an organisation’s goals to create a significant competitive edge, whether through cost reduction, economy of scale, enhanced customer delivery or the creation of  complete new operating models.

In conclusion, the AI TOM plays a crucial role in helping organisations to ride the AI wave to their operating model’s future, while mitigating risks emerging from the AI disruption including data risk management, security and operational risks.

Whether AI transformation is executed well or not can spell the difference between substantial valuation of gain or loss and all would entirely depend upon whether organisations use the AI TOM to help them to successfully design and execute their artificial intelligence strategies for growth.

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