The business case for GenAI

Welcome to the latest edition of the IT Strategy Matters newsletter. I hope you are all off to a great start in 2025. This month's focus is on one of the most transformative technologies of our time: Generative AI (GenAI). We’ll look at the value that Generative AI assistants can add to an organisation, and how Agentic AI can leverage the same underlying technology to deliver even more. As we navigate the ever-evolving landscape of technology, it's crucial to understand how these innovations can bring tangible value to your organisation and the practical steps to realise that potential.

The Rise of Generative AI

Generative AI, particularly in the form of assistants like Microsoft 365 Copilot, has been making waves across industries. Since the launch of Chat GPT by OpenAI on 30th November 2022, the capabilities of Generative AI have grown exponentially, promising to revolutionise the way we work, create, and innovate.

Generative AI is not just a buzzword; it's a game-changer. These AI assistants can summarise vast documents, take meeting minutes, manipulate data, and even create text, images, or videos. They offer unprecedented efficiency and creativity, enabling tasks that were previously unimaginable.

However, despite its transformative potential, many companies are struggling to see the value from their GenAI investments. Why? The answer often lies in how these tools are used, or rather, how they are not used. Let's delve into the business case for Generative AI and explore how to unlock its full potential.

Understanding the Value

Generative AI assistants like Microsoft 365 Copilot can significantly enhance productivity and efficiency. Here are some key benefits:

Increased Efficiency: GenAI can automate repetitive tasks, freeing up valuable time for employees to focus on more strategic work.

Improved Decision-Making: By analysing large datasets and providing actionable insights, GenAI helps in making informed decisions quickly. This is particularly true now that we have models such as OpenAI’s o1 or o3 models which use an agentic approach to leverage advanced reasoning.

Enhanced Creativity: From generating content to designing visuals, GenAI can augment human creativity, producing high-quality outputs rapidly.

Cost Savings: Automation of routine tasks reduces operational costs, streamlining workflows and minimising errors.

Real-World Examples

Consider a marketing team using GenAI to create personalised content for campaigns. By leveraging AI, the team can generate tailored messages for different customer segments, increasing engagement and conversion rates. In another instance, a financial firm might use GenAI to analyse market trends and generate predictive models, enabling more accurate investment decisions.

Realising the Potential

Despite these advantages, the key to unlocking GenAI's value lies in its proper usage. I work with lots of customers to help them to understand and realise the value of GenAI, and those that don’t have three common traits:

Their users have not yet learned how to prompt and use the GenAI assistant to its true capacity.

Users have not changed their ways of working and so cannot realise the value that the GenAI assistant can offer.

They have not automated the right processes with Agentic AI.

Here are some steps to ensure your organisation reaps the benefits of Generative AI:

Training and Education: Ensure that your users are well-trained in prompting and using GenAI tools. Regular training sessions and workshops can help employees become proficient in leveraging these tools effectively.

Change Management: Encourage a shift in working habits. Employees should be open to integrating AI into their daily workflows and adapting to new ways of working.

Management Support: Leadership buy-in is crucial. Managers should champion the use of GenAI and demonstrate its value through their own actions and endorsements.

Continuous Improvement: Regularly assess and refine how GenAI is used within the organisation. Collect feedback from users and make necessary adjustments to maximise its impact.

The Emergence of Agentic AI

As discussed in last month's newsletter, we are now witnessing the rise of Agentic AI. These intelligent agents go beyond the capabilities of GenAI assistants by offering advanced reasoning and the ability to operate autonomously. This shift represents a new era of AI, one that holds even greater potential for businesses.

What is Agentic AI?

Agentic AI combines the power of Generative AI with autonomous decision-making and specialised expertise. Unlike generalist AI assistants, Agentic AI models like OpenAI's GPT-o1 can break down complex problems into specialist areas, leveraging a combination of agents to deliver precise and reliable solutions. Agents can also be created which act independently of the human being, either at that human’s request, or triggered by some other event in an IT system.

Value Proposition

The value of Agentic AI is multifaceted:

Specialisation: Agentic AI can be trained to excel in specific domains, providing deep insights and highly accurate outputs in areas like finance, healthcare, and legal research.

Autonomy: These agents can operate independently, making decisions and taking actions without constant human intervention. They can handle complex tasks, such as strategic planning and coding support, with minimal oversight.

Efficiency and Scalability: By automating specialised tasks, Agentic AI can significantly enhance efficiency and scalability, allowing businesses to achieve more with fewer resources.

Adaptability: Agentic AI models can continuously learn and adapt to new information, improving their performance over time and staying relevant in dynamic environments.

Examples of Agentic AI in Action

Take the example of a healthcare organisation using an Agentic AI model to analyse patient data and suggest personalised treatment plans. The AI can operate autonomously, processing vast amounts of information to provide accurate and timely recommendations, ultimately improving patient outcomes.

In the financial sector, Agentic AI can assist in risk assessment and management by analysing market trends and predicting potential risks. This proactive approach enables businesses to mitigate threats and seize opportunities effectively.

Maximising the Benefits

To fully harness the potential of Agentic AI, consider the following strategies:

Integration: Seamlessly integrate Agentic AI into your existing workflows and systems. Ensure that these agents can access relevant data and operate within your organisational framework.

Customisation: Tailor the AI models to suit your specific needs. Focus on training the agents in specialised areas that align with your business objectives.

Monitoring and Evaluation: Regularly monitor the performance of Agentic AI and evaluate its impact on your business. Use this feedback to make continuous improvements and adapt to changing requirements.

Collaboration: Foster a collaborative environment where human employees and AI agents work together harmoniously. Encourage knowledge-sharing and coordination to maximise the benefits of both human expertise and AI capabilities.

Conclusion

Generative AI and Agentic AI represent the future of business technology. While the initial adoption of these tools might present challenges, the long-term benefits are undeniable. By investing in training, promoting change management, and integrating these technologies effectively, your organisation can unlock new levels of efficiency, creativity, and innovation.

As we continue to explore the potential of AI, it's crucial to stay informed and proactive. Embrace these advancements, and you will find that the possibilities for growth and success are limitless.

Thank you for reading this edition of IT Strategy Matters. I hope you found it useful and informative. Please feel free to share it with your colleagues and friends who might benefit from it.

Until next time, remember: IT strategy matters!

Dan – The IT Strategy Coach

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IT Strategy Matters: The Business Case for Generative AI and Agentic AI