Ben Ellencweig’s Post

The potential economic impact of generative AI is significant, requiring strategic investment and collaboration. - Strategic alliances with gen AI providers are crucial and need deeper collaboration. - Focus on scalability, interoperability, and reusability is essential. - Companies must maintain control over outcomes for success. - Building trust through cocreation, joint planning, and risk sharing is key. - Tying compensation to outcomes is important for motivation and accountability. - Providers must be chosen based on scalability, reusability, and interoperability. - Establishing flexible infrastructure and monitoring model performance are necessary steps. - Setting clear intellectual property (IP) boundaries ensures protection and clarity. #GenerativeAI #strategicalliances #aiinnovation

🤝 Building strategic alliances for generative AI is essential for unlocking its full potential. McKinsey & Company outlines three key elements of successful partnerships: deeper collaboration, focusing on scalability, interoperability, and reusability, and maintaining control over the strategic direction. Effective partnerships require transparency, joint planning, and risk-sharing to navigate gen AI’s complexities. By fostering strong alliances, companies can harness gen AI’s transformative power and drive significant business value. How do you approach strategic alliances with gen AI? Read more: https://lnkd.in/g7sihZpb #AI #generativeAI #alliances

Building trust and fostering collaboration are just as important as choosing the right technology. Organizations should start small, learn fast, and iterate often to ensure that they are well on their way to unlocking the full potential of gen AI.

The unique challenges of working with gen AI—from the lack of experience that many have in using the technology to gen AI’s instability and risk to the technology’s rapid pace of change—have made collaborations increasingly vital. While many companies are already working to some degree with gen AI providers, outdated notions of what to look for in a provider and how strategic alliances should function are putting these efforts at risk. To make the most of strategic alliances, companies should focus on three areas: 1. Go deeper on collaboration. Working with providers on gen AI programs requires a greater degree of trust and collaboration than has been necessary with traditional vendors, with thoughtful transparency, frequent communications, and explicit alignment across planning, development, and ongoing management. 2. Zero in on providers who provide scalability, interoperability, and reusability. No single provider can offer companies everything they need. Achieving scale with a range of providers means understanding not only how well providers can scale but also how well their solutions will work with other components in a company’s gen AI ecosystem. 3. Stay in control of your destiny. It is important to strike a balance between building on a provider’s capabilities and becoming overly dependent on them. That means investing in a flexible infrastructure, monitoring provider performance continually, and tying compensation to outcomes while being clear about intellectual property (IP) boundaries. #genai #artificialintelligence #digital #CIO #technology #ai https://lnkd.in/gGPvcZ3i

🌐✨ Unlocking the Potential of Generative AI with Strategic Alliances Navigating the realm of generative AI requires more than just technological know-how—it demands the right partners. Strategic alliances are pivotal not just for leveraging cutting-edge technology but also for integrating it seamlessly into your business processes. This McKinsey article sheds light on why traditional vendor approaches don't suffice and how to cultivate partnerships that truly enhance your capabilities and competitive edge. From selecting the right allies to deepening collaboration, every step is a stride towards transformation. Ready to transform how you integrate AI into your strategy? Dive into the full article for valuable insights on building effective gen AI alliances  #StrategicAlliances #GenerativeAI #DigitalTransformation #Innovation #BusinessStrategy

Generative AI's (gen AI) transformative potential is poised to revolutionize business, driving up to $4.4 trillion in annual economic impact. The unprecedented adoption rates and substantial private investments from various industries highlight the immense possibilities this technology offers. To capture the full value of gen AI, companies must go beyond mere experimentation and rewire their operations. Strategic alliances with gen AI providers are crucial in navigating the challenges associated with the technology's novelty, instability, and rapid evolution. Despite the increasing collaboration between companies and gen AI providers, outdated perceptions of provider selection and alliance dynamics pose risks to these partnerships. It's essential for organizations to adapt to the evolving landscape and optimize their engagement with gen AI to unlock its full potential.... #AI #Technology #BusinessTransformation #Innovation #Collaboration

A single provider that can provide all the best components for an effective gen AI solution doesn’t exist, at least not yet. The variety of components and models needed to work together across the tech stack means that companies will need to team up with a curated network of specialized tech providers. In developing an ecosystem of providers that can scale, the component parts working together are more important than the parts individually. Companies need to weigh those criteria that enable the overall gen AI system to work most effectively. Building trust and fostering collaboration are just as important as choosing the right technology. Companies should start small, learn fast, and iterate often to ensure that they are well on their way to unlocking the full potential of gen AI.

#strategicalliances are a must for companies looking to build #value from #generativeai. But approaching them like traditional vendor arrangements won’t work. Generative AI’s (gen AI) transformative potential promises to revolutionize #business and propel up to $4.4 trillion in economic impact annually. Unprecedented adoption rates from companies across industries and sectors, as well as significant private investment, underscore this potential. Building #trust and fostering #collaboration are just as important as choosing the right #technology. Companies should start small, learn fast, and iterate often to ensure that they are well on their way to unlocking the full potential of gen AI. #csuite #executivedirectors #culturetransformation #strategytoexecution #nonexecutivedirectors #ceos #businessgrowth #values #trust #innovation #strategyplanning #strategicleadership #strategicgrowth #jointventures #businesstransformation #globalbusiness #trustbuilding #investment #productinnovation #peopleandculture #innovationculture #partnerships https://lnkd.in/eJE5HFUR

Strategic Alliances in Generative AI: Unlocking New Potentials Together In the rapidly evolving field of generative AI, strategic alliances are more than just beneficial; they're essential. Partnering with the right gen AI providers can dramatically enhance our capabilities, from personalized product recommendations to sophisticated customer service solutions. Here's why strategic alliances in gen AI are crucial: 🤝 Shared Expertise | Collaborating with gen AI providers enriches our projects with domain-specific data, essential for high-accuracy AI models tailored to nuanced customer needs. 🔄 Joint Planning | Aligning product roadmaps with our partners ensures that technological advancements meet evolving business requirements, enabling forward-thinking solutions. 💼 Risk Sharing | Forming alliances means not just sharing innovations but also risks, distributing responsibilities that pave the way for groundbreaking projects in generative AI. An example of success in this domain is a luxury retail company that teamed up with a gen AI provider to significantly enhance product recommendation systems, leading to a marked increase in conversion rates. https://lnkd.in/eTrVRHGi These strategic alliances are crucial for leveraging collective strengths and driving innovation in the dynamic landscape of generative AI. 📩 Interested in building generative AI capabilities through strategic partnerships? DM me to explore how we can achieve technological breakthroughs together! 🔗 Learn more about the power of strategic alliances in gen AI: Read More #DigitalTransformation #AI #GenerativeAI #Partnerships #Innovation

McKinsey's piece highlights the importance of building effective strategic alliances with generative AI providers that focus on scalability, interoperability, and maintaining control over the partnership's direction. Of these, the most important is maintaining control over the partnership.   When building strategic alliances with generative AI providers, maintaining control is crucial for directing the collaboration, mitigating risks, and ensuring alignment and accountability.   To establish control, it is important to: - Establish clear IP boundaries, including ownership of pre-existing and jointly developed IP - Implement robust confidentiality agreements - Define terms for terminating the partnership, including management of jointly developed IP and handling of shared data   These measures will help safeguard your firm if the partnership sours, but maintaining an effective alliance means avoiding the most common pitfall - misaligned objectives.   Avoid misalignment by having in-depth discussions, drafting detailed agreements, and scheduling regular check-ins.   By proactively addressing alignment, companies can forge successful partnerships that drive generative AI initiatives forward while safeguarding their strategic interests.   #GenerativeAI #IPManagement #SuccessfulPartnerships