Generative AI in global capability centres: Changing operations, innovation, and talent management
By Sameer Dhanrajani, CEO, AIQRATE & 3AI
Generative AI is upending the business strategy & operational models of the industries and In addition to executing well-defined tasks, Gen AI is starting to address broader, more ambiguous problems. It’s not implausible to imagine that one day a “Gen AI strategist in a box” could autonomously develop and execute a business strategy. GCCs, on the other side are embracing Gen AI in different hues and are leveraging Gen AI for operational excellence , innovation and talent management aspects.
During my multiple conversations with GCCs MDs & AI leaders who express such a vision — and they would like to embed Gen AI in processes and their operating models; here are few of the strategic areas wherein GCCs are deploying Gen AI and the ensuing impact of Gen AI on the operations , innovation & talent management:
Business Processes with Gen AI in GCCs – Increasing productivity by reducing disruptions
AI algorithms are not natively “intelligent.” They learn inductively by analysing data. Most GCC leaders are investing in AI talent and have built robust information infrastructures, Airbus started to ramp up production of its new A350 aircraft, the company faced a multibillion-euro challenge. The plan was to increase the production rate of that aircraft faster than ever before. To do that, they needed to address issues like responding quickly to disruptions in the factory. Because they will happen. Airbus turned to its GCC wherein AI teams came together , It combined data from past production programs, continuing input from the A350 program, fuzzy matching, and a self-learning algorithm to identify patterns in production problems. AI led to rectification of about 70% of the production disruptions for Airbus, by matching to solutions used previously in near real time. Just as it is enabling speed and efficiency at Airbus, AI capabilities in GCCs are leading directly to new, better processes and results at other pioneering organisations. Other large companies, such as BP, Wells Fargo, and Ping , an Insurance, are already solving important business problems with AI. Many others, however, have yet to get started.
Integrated Strategy Machine – The Innovation Scope of Gen AI @ scale
The integrated strategy machine is the AI analogy of what new factory designs were for electricity. In other words, the increasing intelligence of machines could be wasted unless businesses reshape the way they develop and execute their strategies. No matter how advanced technology is, it needs human partners to enhance competitive advantage. An integrated strategy machine is the collection of resources, both technological and human, that act in concert to develop and execute business strategies. It comprises a range of conceptual and analytical operations, including problem definition, signal processing, pattern recognition, abstraction and conceptualisation, analysis, and prediction. There lies the immense scope of putting Innovation at scale in GCCs Several GCCs are deploying state-of-the-art innovation strategies for their parent organisations in the business enabling functions w.r.t supply chain optimisation systems, inventory forecasting system, sales forecasting, profit optimisation and many others. Multiple Financial services & Insurance GCCs are putting innovation in improving customer service across its insurance and financial services portfolio by offering an online loan in three minutes, thanks in part to a customer scoring Gen AI tool that uses an internally developed face-recognition capability that is more accurate than humans.
Insights enabled Gen AI solution for Talent Management
GCCs are working on persona based Gen AI employee scorecards that determines the overall talent engagement and retention for the parent enterprise employees , the Gen AI solution factors in multiple parameters in the form of LLM’s – cultural nuances, organisation performance , employee work metrics etc to determine real time employee talent management and retention scenarios. Recommendation based Intelligence, emerging today, enables organisations and people to do things they couldn’t otherwise do. Unlike insights enabled intelligence, it fundamentally alters the nature of the task, and business models change accordingly. GCCs are creating employee specific recommendation based Intelligence to enable parent organisations strategise talent strategies they couldn’t otherwise do.
GCCs leaders and AI teams are creating multiple approaches to embed Gen AI solutions and capabilities to reimagine their business operations , innovation strategy and talent management to derive accentuated business performance.
