Core Insights - Artificial intelligence (AI) is enhancing efficiency and insights for businesses but is simultaneously exacerbating departmental silos, leading to diminished overall organizational performance [1][3] - The key to overcoming these challenges lies in shifting from a "process-first" approach to a "goal-first" strategy, aligning strategic objectives and shared performance incentives to enable AI to connect organizations and drive value creation [1][3] Impact of AI on Organizations - AI is seen positively in boardrooms globally, with leaders recognizing its potential to streamline operations, improve decision-making, and significantly boost productivity [3] - However, the trend of increasing departmental silos is emerging, where departments operate independently with AI, making it difficult for organizations to achieve their strategic goals [3][4] Challenges Faced - The "technology-first" trap occurs when departments implement AI without first identifying the problems it should solve, leading to incompatible tools and a lack of cross-departmental collaboration [4] - Different departments using varied datasets and models can result in contradictory conclusions, threatening unified business strategies [7] - Many AI projects fail to scale after initial deployment due to their isolated implementation, which does not yield transformative effects [9] Solutions Proposed - Establishing an AI Center of Excellence (CoE) can balance centralized management with decentralized execution, bringing together top AI experts and resources to align AI projects with company goals [5] - Shifting the mindset from "process-first" to "goal-first" ensures that AI supports overarching organizational outcomes rather than just departmental efficiencies [7][10] - Implementing shared key performance indicators (KPIs) that reflect collective outcomes can encourage cross-functional collaboration in AI initiatives [10] Case Studies - An example of effective AI integration is seen in a large Australian online retailer, which focused on a unified goal of enhancing customer lifetime value, leading to a coherent customer experience across departments [8] - A multinational bank faced internal conflict due to differing AI assessments of the same customer group, highlighting the need for aligned strategies [7] - A retail chain achieved departmental successes with AI but failed to improve overall customer satisfaction, indicating the importance of cross-functional results [9]