Artificial intelligence (AI) is transforming industries and businesses across the globe, but there’s a common mistake many organisations make when trying to implement AI: they start with the solution, not the problem. Somebody recently asked me for advice on whether they should hire an AI consultant to help improve their business. My immediate reaction was that they were approaching it the wrong way. That’s like choosing a tool—AI in this case—and then wandering around the business looking for a problem to apply it to.
It’s tempting to adopt the latest technology because it’s new, exciting, and promises efficiency, but this approach is backwards. Imagine having a hammer and viewing everything as a nail just because it’s the tool you have. AI can be a powerful asset, but it’s not a one-size-fits-all solution, and it shouldn’t be the starting point for business improvements.
Understanding Your Business’s Needs
The first and most important step for any business leader or decision-maker is to thoroughly understand the “levers and pulleys” in your business that impact critical factors like profit, revenue, and customer satisfaction. These are the core drivers of your business’s success, and every business has unique factors that influence them.
Think about these factors like parts of a machine. You wouldn’t start fixing the machine by choosing a random tool and hoping it will work on something. Instead, you first diagnose which part of the machine isn’t functioning properly and then select the tool that is best suited to fix it. The same logic applies when it comes to solving business problems with technology like AI.
Identify the Problem Before the Solution
Before jumping into AI (or any technology for that matter), ask yourself: what are the key problems your business needs to solve? Is it an issue with profitability? Are your revenue streams inconsistent? Do you need to improve customer satisfaction or retention? Are there inefficiencies in your operations that could be streamlined?
Once you’ve clearly identified the specific problem, the next step is to evaluate what factors in your business are contributing to it. Are there processes that are slowing things down? Are your resources being used effectively? Do you have access to the right data to make informed decisions?
At this point, you’ll have a clear understanding of what the issue is and what needs to change. Only then is it time to consider the tools and solutions that can help you address the problem.
Finding the Right Solution: Is AI the Answer?
When you know what the problem is, and what levers in your business affect it, then you can evaluate if AI is the right tool to help you solve it. AI is fantastic for certain types of tasks—such as automating repetitive processes, analyzing large amounts of data quickly, and making predictions based on past patterns. However, not every business problem requires AI.
For example, if your issue is customer dissatisfaction, you might look at data to see where in the customer journey things are going wrong. AI can help here by analyzing customer feedback, tracking sentiment on social media, or even predicting future churn. However, if the issue is more about internal inefficiencies or a lack of alignment in your team, the solution might involve more straightforward process improvements or organisational changes—without the need for advanced AI tools.
This careful evaluation ensures that you’re not just using AI because it’s trendy but because it’s the most effective way to address your specific needs.
The Risk of Using AI Without a Clear Purpose
Approaching AI without a clear purpose can lead to wasted time, money, and effort. Implementing AI technology is a significant investment—not just in terms of finances but also in terms of the time needed for integration and training. Without a clear goal in mind, you risk implementing a solution that doesn’t solve the real problem and creates unnecessary complexity within your operations.
Businesses that rush into AI without understanding the problem they’re trying to solve often end up with systems that are overly complicated, misaligned with their business needs, or underutilized by their teams. This can lead to frustration, inefficiency, and even more problems down the line.
Practical Steps to Avoid Missteps
To avoid falling into the trap of choosing a solution before understanding the problem, here are some practical steps you can follow:
- Map Out Your Business Drivers: Identify the key metrics that drive your business—profit, revenue, customer satisfaction, etc. Then, dig into the factors that influence these metrics.
- Pinpoint Specific Problems: Are there recurring issues affecting these metrics? Whether it’s declining sales, customer complaints, or inefficiencies in your operations, clearly define the problems you need to solve.
- Evaluate Potential Solutions: Once you understand the problem and the factors affecting it, explore the range of tools and strategies that could help. AI may be one solution, but don’t limit yourself—there could be simpler, more cost-effective approaches.
- Consider AI as a Tool, Not the Goal: If you determine that AI is the right tool for the job, approach it with a clear plan. Know exactly what you want to achieve, and ensure you have the infrastructure and skills to implement it effectively.
Conclusion: The Right Approach to AI
AI is an incredibly powerful tool, but it’s just that—a tool. It’s not a catch-all solution for every business problem. By starting with a clear understanding of your business’s needs and challenges, and only then considering AI as a potential solution, you’ll set yourself up for success. Remember, the key is not to let the technology drive your decisions, but to let your business goals dictate the tools you choose.
Contact evince Consulting today to see how we can help you.
