How AI Will Transform Business Practices

AI is the new Excel - except its impact on businesses will be 𝘰𝘳𝘥𝘦𝘳𝘴 𝘰𝘧 𝘮𝘢𝘨𝘯𝘪𝘵𝘶𝘥𝘦 𝘭𝘢𝘳𝘨𝘦𝘳. Here's why: Spreadsheets revolutionized how businesses work with data. AI is about to fundamentally change how we work with information, creativity, and knowledge. Its impact will reach far beyond Excel's domain of calculations and data analysis, touching every aspect of how we work and create. And just like Excel became an essential business skill, 𝘈𝘐 𝘱𝘳𝘰𝘧𝘪𝘤𝘪𝘦𝘯𝘤𝘺 will soon be 𝘯𝘰𝘯-𝘯𝘦𝘨𝘰𝘵𝘪𝘢𝘣𝘭𝘦 in the professional world. Here's where they 𝘴𝘪𝘮𝘪𝘭𝘢𝘳: → 𝐁𝐨𝐭𝐡 𝐚𝐫𝐞 𝐩𝐫𝐨𝐝𝐮𝐜𝐭𝐢𝐯𝐢𝐭𝐲 𝐦𝐮𝐥𝐭𝐢𝐩𝐥𝐢𝐞𝐫𝐬: transforming hours of work into minutes through automation and computation. → 𝐁𝐨𝐭𝐡 𝐛𝐫𝐞𝐚𝐤 𝐝𝐨𝐰𝐧 𝐜𝐨𝐦𝐩𝐥𝐞𝐱 𝐩𝐫𝐨𝐛𝐥𝐞𝐦𝐬 𝐢𝐧𝐭𝐨 𝐦𝐚𝐧𝐚𝐠𝐞𝐚𝐛𝐥𝐞 𝐩𝐢𝐞𝐜𝐞𝐬 - Excel through cells and formulas, AI through prompts and iterations - making sophisticated tasks accessible to everyone. → 𝐁𝐨𝐭𝐡 𝐬𝐞𝐫𝐯𝐞 𝐚𝐬 𝐢𝐧𝐭𝐞𝐫𝐟𝐚𝐜𝐞𝐬 𝐭𝐡𝐚𝐭 𝐛𝐫𝐢𝐝𝐠𝐞 𝐡𝐮𝐦𝐚𝐧𝐬 𝐰𝐢𝐭𝐡 𝐜𝐨𝐦𝐩𝐥𝐞𝐱 𝐩𝐫𝐨𝐜𝐞𝐬𝐬𝐞𝐬: Excel connects us to computational tasks, while AI links us to cognitive ones. → 𝐁𝐨𝐭𝐡 𝐟𝐨𝐥𝐥𝐨𝐰 𝐬𝐢𝐦𝐢𝐥𝐚𝐫 𝐚𝐝𝐨𝐩𝐭𝐢𝐨𝐧 𝐩𝐚𝐭𝐭𝐞𝐫𝐧𝐬, starting with a learning curve (formulas for Excel, prompting for AI). → 𝐁𝐨𝐭𝐡 𝐜𝐫𝐞𝐚𝐭𝐞𝐝 𝐜𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐯𝐞 𝐚𝐝𝐯𝐚𝐧𝐭𝐚𝐠𝐞𝐬 𝐟𝐨𝐫 𝐞𝐚𝐫𝐥𝐲 𝐚𝐝𝐨𝐩𝐭𝐞𝐫𝐬, driving rapid workplace adoption and fundamentally changing how work gets done. The key difference? While Excel revolutionized specific business functions, AI is transforming virtually every domain of human work and creativity, from writing and design to research and decision-making. A few reasons why we believe AI's impact will be 𝘮𝘰𝘳𝘦 𝘧𝘢𝘳-𝘳𝘦𝘢𝘤𝘩𝘪𝘯𝘨: → 𝐈𝐭𝐬 𝐢𝐧𝐭𝐞𝐫𝐟𝐚𝐜𝐞 𝐢𝐬 𝐧𝐚𝐭𝐮𝐫𝐚𝐥 𝐥𝐚𝐧𝐠𝐮𝐚𝐠𝐞: where Excel required learning a specific interface and formula language, AI can be engaged through natural language. That will make it accessible to everyone. → 𝐈𝐭 𝐬𝐡𝐢𝐧𝐞𝐬 𝐰𝐢𝐭𝐡 𝐮𝐧𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞𝐝 𝐝𝐚𝐭𝐚: the reality is complex and nuance is needed to approach it. AI’s ability to process unstructured data will make it stand out and outperform traditional software solutions. → 𝐈𝐭 𝐜𝐚𝐧 𝐭𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦 𝐚𝐥𝐥 𝐤𝐧𝐨𝐰𝐥𝐞𝐝𝐠𝐞 𝐰𝐨𝐫𝐤: Excel automated calculations; AI augments human thinking itself. AI will touch everything from creative writing to scientific research, from customer service to healthcare diagnostics. AI isn't just another business tool - it's the new way knowledge work will be done. The big question that remains is how fast individuals and companies will adapt to it. My guess is once we will see the first organizations truly going AI-first and reaping the benefits, the rest will follow very quickly.

Think AI is just about chatbots? The next wave of innovation will make you rethink everything. The real revolution in workplace AI is happening at the intersection of perception and action. We’re moving beyond simple text interactions to AI that can truly see, understand, and operate in our digital workspaces. Look at what Google DeepMind Gemini 2, OpenAI new Video Assistant and Anthropic Claude 3.5 are showing us—AI now understands complex visual contexts, follows nuanced instructions, and executes tasks across multiple applications. This isn’t just automation; it’s about creating a true digital knowledge worker. The implications are massive. Imagine an AI that can pull data from your analytics, cross-reference your CRM, draft strategy docs, and update systems—all while understanding the bigger business picture. End-to-end workflow automation isn’t just a dream; it’s here. And the best part? You don’t need to be an engineer or know how to code. If you can describe the tasks and triggers, Generative AI can handle the rest. This shift from simple task automation to comprehensive digital work is going to transform businesses. The real winners won’t just speed up existing processes—they’ll rethink what’s possible when AI becomes a true partner in knowledge work.

#AI isn't just changing how we work—it's redefining what growth mindset truly means in today's business landscape. At Philip Morris International, we're discovering that successful AI implementation depends less on algorithms and more on our collective ability to embrace continuous learning and adaptation. What's fascinating about our journey so far: • When we made AI tools available across the organization, the response wasn't fear—it was over 250 employee-generated use cases showing how technology could enhance their work • Our cross-functional teams identified five key areas where AI is creating most value: content creation, knowledge management, interactive assistants, innovation acceleration, and digital personas • The "AI Ready" pathway we've developed focuses on building both technical competence and psychological confidence—because both are essential for meaningful transformation The organizations that thrive in this new era won't be those with the most advanced AI, but those whose people are most adaptable and collaborative. Technology expertise can be acquired, but cultivating a culture where continuous learning is valued and where change is embraced—that's the real competitive advantage. As we look to the future, the focus remains firmly on our greatest asset: the human ingenuity that no algorithm can replace. The question isn't how AI will transform our business, but how we're transforming ourselves to make the most of these new possibilities. Read more about this here ➡️ https://lnkd.in/eHNXbMrF #GrowthMindset #BusinessTransformation #FutureOfWork Cc: Michael Voegele, Frederic Patitucci, Michele Carville, Milica Jovic, Miguel Coleta

Artificial intelligence is no longer just a tool for automation; it’s evolving into an intelligent ecosystem that is rewriting the rules of enterprise value creation. The real transformation isn’t about replacing tasks; it’s about architecting new business models, workflows, and decision systems that operate at the intersection of autonomy, context, and human judgment. We’re witnessing the rise of agent-based intelligence, distributed, adaptive, and capable of driving outcomes from the cloud all the way to the edge. These agents don’t just follow instructions; they interpret, collaborate, and learn across digital and physical systems. They are redefining how value chains operate, how knowledge flows, and how organizations respond to complexity at speed. But here’s the challenge: while capability accelerates, governance lags. Regulation is fracturing across jurisdictions, from California to India to the EU, each defining its own standards of transparency and trust. Hardware supply chains are being redrawn as compute power becomes a matter of national strategy. The human dimension, skills, ethics, and accountability are becoming the ultimate differentiator. This is the moment to reimagine the enterprise architecture, where AI agents become participants in strategy, operations, and innovation. Winning organizations will be those that build cohesive ecosystems combining human insight, digital agility, and agentic intelligence, all connected through responsible design and edge-to-cloud orchestration. AI will not simply automate what we do. It will redefine how we think, decide, and build. The question for every leader today is not whether AI fits into your business; it’s whether your business is ready to operate in an AI-native world. #AI #Innovation #Leadership #CIO #CTO #CFO #DigitalTransformation #Strategy

I recently wrote that AI is not just a technology shift – it's a work shift. So, how does that play out? First, AI changes how we do tasks. Next, it changes how we do our jobs. Then, it changes entire functions. The result? A brand new way of getting work done and thinking about growth. Step 1: AI transforms tasks: AI works with you. It helps you do what you’ve always done — just faster. A marketer drafts blog posts in minutes. A rep writes emails with higher personalization, less effort. A support leader summarizes tickets in seconds. This is where most teams are today: AI as a productivity booster. Step 2: AI transforms jobs. AI works for you. It starts delivering outcomes. A content agent spins one blog into a full campaign. A prospecting agent books qualified meetings without human touch. A customer agent handles most Tier 1 support tickets. The job itself starts to evolve. You spend less time doing — and more time creating, optimizing, and scaling. Step 3: AI transforms functions. As agents take on entire workflows, the structure of departments begins to shift: Support shifts from to proactive experience design. Marketing shifts to creative strategy. Sales shifts to high-impact closing. Role ratios change. Skillsets shift. We are not quite here but we can see the path. The result for scaling businesses? A whole new way of approaching work, structuring teams, and thinking about growth.

AI is dramatically reshaping business models. This framework is the foundation of my new LinkedIn Learning course "AI-Driven Business Model Innovation". See below for a brief summary of the 6 domains of AI’s impact on value creation, together with the major driving forces and the capabilities required as business models rapidly evolve. Link to the course - free for LinkedIn subscribers - in comments. DRIVING FORCES 🧠 Driving Forces of AI Evolution We’re at a structural shift in business. AI capabilities are accelerating, costs are falling, and data is becoming a strategic asset. These forces are reshaping the foundations of value creation — demanding that leaders rethink not just what their business does, but how it evolves. SIX DOMAINS OF AI-DRIVEN BUSINESS MODEL INNOVATION ⚙️ Scalable Efficiency AI enables organizations to operate at a new scale — automating tasks, streamlining decisions, and amplifying productivity. This isn’t just about cost-cutting and efficiency — it’s augmenting talent for higher-value work and building systems that continuously learn and improve. 🎁 Enhanced Value Propositions AI enhances what you offer — and how it’s experienced. From smart, adaptive products to deeply personalized services, it allows you to deliver more relevance, utility, and meaning to every customer. The frontier of value lies in customer responsiveness and learning at scale. 💞 Shifting Customer Relationships AI transforms how we engage with customers — not just improving service, but enabling co-creation, building trust, and responding to individual needs in real time. The most successful companies will be those that become embedded in customers’ lives through intelligent, trusted relationships. 🏗️ Redesigning Organizations Organizations must evolve from static hierarchies to adaptive systems that blend human and AI capabilities. This means rethinking workflows, decision-making, and structures to be more fluid, responsive, and innovation-driven. AI is not a bolt-on — it enables dramatic reconfiguration of value creation. 🧑💻 The AI Agent Economy AI agents are becoming participants in the economy — acting on behalf of users, negotiating, coordinating, and executing tasks. This shift calls for new strategies, where businesses design for agents as well as humans, and where trust and interoperability become core to competitive advantage. 🌐 AI in Platforms and Ecosystems The most powerful business models today are built around data-rich ecosystems. AI turns data into action, unlocking new platform value and shared innovation. Success increasingly depends on how well you participate in — or build — dynamic, intelligent ecosystems. CAPABILITIES 🚀 Capabilities for AI Evolution Thriving in this landscape requires more than tools. It demands vision, adaptability, experimentation, and the ability to work across boundaries — human, organizational, and technical. These capabilities are the foundation of tomorrow's business models and success.

I've seen AI transform businesses. AI's biggest value for your business lies in automation, enhanced data analytics, and improved decision-making. Here’s how AI can revolutionize your operations: 1) AI Automation • Automate repetitive tasks like checking emails, inputting data, and generating reports. • Save time, boost productivity, and reduce human error. • Engage your team by allowing them to focus on meaningful work. A 2024 survey by Duke University and the Federal Reserve Banks found that 40% of businesses used AI tools to automate tasks in the past year, and 54% plan to do so in the next year. 2) Enhanced Data Analytics • AI and machine learning analyze vast amounts of data quickly. • Identify patterns and trends that humans might miss. • Predict outcomes based on historical data. Research from Wavestone shows that 62% of senior data leaders prioritize generative AI, with nearly 90% increasing investment in 2024. AI can predict customer churn, flag fraud, and project revenue trends. 3) Improved Decision-Making • Use AI insights to identify new business opportunities. • Flag operational roadblocks and personalize offerings. • Prepare for potential challenges. Airlines use predictive AI to optimize ticket prices by analyzing demand patterns, consumer behavior, and competition in real-time. AI offers significant benefits, but human expertise is essential to ensure accuracy and credibility. Embrace AI to transform your business functions and stay ahead in the competitive landscape.

AI is transforming the landscape of work by reducing the costs associated with “known work” and emphasizing the importance of cross-disciplinary sense-making, customer focus, and the swift development of next practices. - Automation acts as a catalyst for elevation: as “known work” becomes automated, the emphasis shifts to designing “next practices” rather than merely optimizing existing best practices. - Breadth is becoming the new depth: individuals who connect and integrate knowledge across various domains are outperforming specialists as machines take over siloed expertise. - Strategic approach: prioritize customer needs and leverage AI for proactive growth and new offerings, rather than solely focusing on cost reduction and risk management. - Talent development: prioritize skills associated with the humanities, such as framing, synthesis, and the ability to ask insightful questions; prompt engineering is a form of applied rhetoric. - IT operating model: transition from being an “order taker” managing legacy systems to a “change maker” who understands the potential of innovation, possesses financial acumen, and has a strong grasp of business models. By shifting your teams from order-taking to change-making, you will not only keep pace but also lead the way in how value is created in the future.

McKinsey's comprehensive analysis reveals a transformative shift in AI technology that's reshaping business operations across industries. The past year has seen remarkable advances in generative AI, evolving from knowledge-based tools to AI-enabled "agents" capable of executing complex, multistep workflows across the digital landscape. Key developments include: ⇨ AI agents that can plan actions, use online tools, and learn to improve performance autonomously ⇨ Natural language capabilities enabling seamless human-agent interaction ⇨ Potential for agents to act as skilled virtual coworkers across various sectors The market opportunity is significant, with AI agents poised to automate a wide range of enterprise processes. McKinsey's research indicates that 60 to 70 percent of work hours in today's global economy could theoretically be automated using existing technology capabilities, including generative AI. McKinsey identifies three critical use cases that showcase the transformative power of AI agents: 1. Loan underwriting: Streamlining credit-risk assessment processes 2. Code documentation and modernization: Facilitating legacy software updates 3. Customer service optimization: Improving issue resolution and reducing handling times The key to success in this space, according to McKinsey, lies in: ⇨ Investing in strong AI trust and risk management practices ⇨ Developing platforms for managing and monitoring agent-based systems ⇨ Thoughtful integration of AI tools with human capabilities All in all, generative AI agents are set to revolutionize business operations, potentially increasing productivity by 5 to 15 percent in functions like marketing and delivering breakthrough value in modernizing legacy technology. The future of work isn't about AI replacing humans, but about humans and AI creating capabilities neither could achieve alone.

Artificial Intelligence (AI) Isn’t “the Future of Business.” It’s the New Operating System of Business. Companies using Artificial Intelligence (AI) to streamline operations report a 20–30% boost in efficiency and major gains in customer satisfaction. (PwC AI Predictions Report) Across every industry, Artificial Intelligence (AI) is transforming operations from slow, reactive, and manual—to fast, predictive, and customer-centric. This isn’t about automation for efficiency. It’s about intelligence for effectiveness. When operations get smarter, customers get happier. And when customers get happier, revenue rises. Here’s what Artificial Intelligence (AI) is changing right now: 1. AI eliminates operational friction before customers feel it. Predictive analytics identifies delays, bottlenecks, stockouts, and service failures early. Fixing problems upstream protects trust downstream. 2. AI speeds up decisions that used to slow teams down. With real-time insights, associates make better choices faster. No more “let me check” moments. Confidence improves. Service improves. 3. AI converts customer signals into operational strategy. Every complaint, delay, return, and question becomes meaningful data. AI turns that data into patterns leadership can act on—instantly. This is where companies stop guessing and start operating with clarity. 4. AI improves workflow accuracy and consistency. Whether it’s demand forecasting, scheduling, routing, or quality checks, AI removes human error and creates reliability customers can feel. 5. AI makes frontline teams more human, not less. When AI handles repetitive tasks, associates finally focus on what customers value most—listening, serving, and solving. The result? Operational excellence becomes customer-experience excellence. And customer-experience excellence becomes revenue. The businesses that win in the next decade won’t be the ones with the biggest marketing budgets. They’ll be the ones that use Artificial Intelligence (AI) to run smoother operations, deliver better experiences, and create trust at every touchpoint. AI isn’t replacing people. It’s replacing friction. 80% of companies now say AI has become essential to running efficient, reliable operations. (McKinsey State of AI Report 2024) And every business that embraces it will run faster, smarter, and far more effectively—while making customers genuinely happy.