GenAI + HI: How Do They Fit Into the Future of Your Company?

Generative AI (GenAI) and human intelligence (HI) differ fundamentally in their strengths: GenAI excels at processing vast amounts of data, automating repetitive tasks, and generating predictive insights at unparalleled speed. However, it lacks the creativity, emotional intelligence, and ethical reasoning inherent to HI. Human intelligence brings critical thinking, judgment, and contextual understanding to decision-making, areas where AI falls short. The future of their coexistence lies in their complementary roles. A 2023 PwC report suggests that businesses effectively combining AI with human oversight can improve productivity by 40%, highlighting a future where AI augments human capabilities, enabling more informed and efficient decisions. This hybrid approach, where AI amplifies human strengths rather than replaces them, will drive innovation and growth in increasingly AI-driven economies.

GenAI has captured the imagination of the business world, promising transformative impacts. When organizations start experimenting with generative AI, they often disregard its transformative nature, and the operationalization challenges it involves.

The correct view and execution are that your generative AI pilots should not be about just proving that the technology works, but about learning how generative AI fits into the future of your company.

The most successful pilots focus on proving business capability, not on technical feasibility. Organizations tend to run technical pilots that simply prove that it is possible to build something with generative AI, leading to only incremental improvements and ignoring the transformative potential of this technology.

GenAI Is a Marathon, not a Sprint

Like all new technology, understanding where GenAI lies in the Gartner Hype Cycle and Technology Adoption Lifecycle is critical to deploying it effectively and to manage expectations. Equally important is acknowledging how AI and HI differ, and how their integration can shape future business strategies.

Generative AI probably will transition from the "Peak of Inflated Expectations" to the "Trough of Disillusionment" in Gartner’s Hype Cycle in a couple of years. This is generally because corporations fail to define the appropriate organizational structure, governance and resources allocation, leading to failure in execution.

In parallel, GenAI has already reached the "Early Adopters" phase in the Technology Adoption Lifecycle. Early-stage businesses, particularly in tech-savvy sectors like e-commerce, finance, and healthcare, have begun realizing its potential, while mainstream industries remain cautious, losing speed in their competitive capabilities.

Real Business Impact: Internal Processes vs. Sales

GenAI primarily impacts internal processes, from automating customer support via AI chatbots to optimizing supply chains using predictive analytics. For example, JP Morgan introduced an AI-driven trading algorithm that enhanced internal decision-making, reportedly improving its overall trading revenue by 20% in 2022. This shows how GenAI optimizes operational efficiencies, driving profitability behind the scenes.

However, the effect of GenAI on sales and customer-facing services is growing. Companies like H&M have utilized AI-powered virtual assistants to enhance the online shopping experience, resulting in a 12% uplift in conversion rates. While GenAI can positively influence sales, its true potential lies in transforming internal workflows, helping businesses scale and innovate from within.

Working With AI to Achieve ROI and Competitive Advantages

To achieve meaningful ROI from GenAI, companies must integrate it into their broader digital strategy. This requires understanding its role in automation, data processing, and decision-making. For example, Microsoft’s Azure AI services helped Lufthansa Technik automate the inspection of airplane engines, cutting manual labor costs by 30%, and yielding a clear ROI. Success stories like this underline the importance of aligning AI capabilities with measurable business goals.

Generative AI offers competitive advantages in personalization, speed, and efficiency. Retail giants like Amazon are leading by leveraging AI to offer personalized shopping experiences, improving customer retention. In manufacturing, AI-powered predictive maintenance solutions can prevent equipment failures, cutting downtime by up to 40%, according to a report by PwC.

Key Challenges in Adopting Generative AI

One of the primary challenges businesses face in adopting GenAI is centralized data. AI models require vast amounts of high-quality data to function effectively, and many organizations struggle with data silos or poor data hygiene. Additionally, concerns around data privacy and compliance can delay or limit AI implementations, especially in heavily regulated industries like finance or healthcare.

Another major challenge is workforce readiness. A Deloitte study revealed that 63% of executives cited a lack of skilled AI talent as a significant barrier. Companies need to invest in upskilling employees to work alongside AI systems, ensuring they understand both the technology and how to interpret AI-generated insights.

Finally, resistance to change can be a major hurdle. In some companies, decision-makers may be hesitant to adopt GenAI due to concerns over job displacement, costs, or skepticism regarding its real-world applications. Overcoming these barriers requires a shift in mindset, emphasizing collaboration between AI and human employees rather than competition.

Short-, Medium-, and Long-Term Strategies for GenAI Adoption

• Short-term (1-2 years): Focus on small, high-impact AI projects that streamline internal processes, such as customer service automation or supply chain optimization. Early adopters like Ocado have integrated AI into logistics, reducing waste and boosting profitability within months.

• Medium-term (3-5 years): Expand AI across departments, improving data integration and workforce readiness. Companies should also develop an AI governance framework, ensuring compliance and ethical use.

• Long-term (5+ years): Move toward full AI-augmented business models. AI will become ubiquitous across all operations, from HR to R&D. Companies that adopt a holistic AI strategy today, like IBM, which leverages AI for IT automation, will lead in innovation and efficiency.

Eliminate Data Silos: Steps to Integrate GenAI

1. Assess readiness: Conduct a digital audit to evaluate data quality, data infrastructure, and employee skills.

2. Start small: Implement AI in limited, high-priority areas to minimize risk while building expertise.

3. Train workforce: Invest in AI education for employees to foster an AI-friendly culture.

4. Ensure governance: Centralize data, develop AI ethics guidelines to manage data privacy and mitigate risks.

5. Measure progress: Regularly track AI project KPIs to demonstrate ROI and refine strategies.

A Top-Down Strategy

Let's be clear: this is a top-down strategy for the longevity, scalability and competitiveness of your company. 

For leaders considering GenAI adoption, managing expectations is key. The technology holds transformative potential, but it requires strategic planning and realistic timelines. Invest in data infrastructure, focus on workforce readiness, and prioritize internal processes before scaling AI for customer-facing services. 

Leaders should see GenAI as a tool for augmenting human creativity and decision-making rather than as a replacement. Collaboration between AI and HI will be crucial in creating a future-proof organization, delivering sustained value over time.

By taking a measured approach, organizations can navigate the hype cycle, overcome adoption challenges, and unlock the competitive advantages of GenAI.

Keep in mind: It is crucial for the C-level to understand that AI is not a tool, it is an agent. What does this mean? With a tool, humans make the decisions. As an agent, AI will eventually make decisions on its own. This is why human oversight, ethics and regulation are so important 

This is a one-way ticket. Embrace it with intelligence.