Leaders are grappling with managing it all. It’s time for businesses to centralize control under a seasoned executive, right?
Wrong.
Whenever a new technology comes along, large companies think you need
to appoint a designated senior leader — a “czar,” in popular parlance —
and it will get taken care of. In recent years, we’ve seen how this
applies to the
metaverse,
blockchain, and
now AI.
At many enterprises, the decision to appoint a senior point person to
oversee the adoption of a new technology is practically an automatic at
this point. It’s also often a big mistake.
The
process, as I’ve observed it, usually starts when the board hears about
a hot new technology. Teams are pitching leadership on wildly
optimistic and conflicting use cases, and the board, excited but unsure
how to proceed, puts some poor, unsuspecting soul in charge of the whole
thing. It very rarely works out. After struggling with the technology
for a few years, with minimal results, the leader who had been charged
with charting this bold new course often departs the business. While
this is often greeted with great surprise within the company, it
shouldn’t be. When these leaders fail, it’s because they don’t have any
idea how the company runs on the frontlines, and at the level where the
ideas are actually put into practice.
So, what should companies do instead?
Lead from the Frontlines
In
developing applied technologies like AI, leaders must identify
opportunities within workflows. In other words, to find a use for a new
piece of tech, you need to understand how stuff gets done. Czars rarely
figure that out, because they are sitting too far away from the supply
line of information where the work happens.
There’s
a better way: instead of decisions coming down the chain from above,
leaders should let innovation happen on the frontline and support it
with a center of excellence that supplies platforms, data engineering,
and governance. Instead of hand-picking an expert leader, companies
should give teams ownership of the process. Importantly, this structure
lets you bring operational expertise to bear in applying technology to
your business, responsibly and at scale and speed.
That’s
how we do it at Verizon. Instead of a centralized top-down structure,
AI implementation is owned by teams close to the work, which can mean a
broad set of stakeholders providing real-time feedback.
For
example, I want my supply chain person to figure out the best use
cases. They have insights that a czar — who is typically focused on
strategy and revenue and growth— simply doesn’t. People at the
functional level recognize the challenges of getting things done
efficiently and effectively. They can quickly spot the tools that work
best. These frontline groups, which own the budget and the service level
agreements, must live with the end result. They will often focus their
attention on projects that can benefit both these metrics, which means
you get use cases that drive measurable outcomes.
Harness AI
Right
now, Verizon is partnering with outside companies to fine tune our
models as we apply AI in three areas: 1) In operations, on large
language models to help with cognitive and computational tasks, 2) for
the network, on using AI in buildout design, capacity prediction, and
power amplification to help automate and speed up network response, and
3) in customer care and sales, to help with marketing and
personalization.
We’ve been at this a while and have learned from our mistakes.
For
example, for the last decade plus, we had a centralized, catchall way
of solving customer service issues. But as we learned from our frontline
workers, information of all kinds — like how to work a specific device,
redeem a promotion, address a specific billing concern, answer a
question about network builds, etc. — can be hard to find and overly
complicated, which adds to the already heavy burden on our service
representatives. We have hundreds of different devices we support,
roughly 100 different promotions going at any given time, and our
customer care teams are expected to know all of it.
That’s where we’ve turned to AI to relieve some of that cognitive load.
Consider
an example: Let’s say that a customer calls in with a question about
their mobile promo and wants to better understand what options may be
available to them for internet service, too. The representative would
likely search for, and pull up, multiple documents across many screens
outlining all available promos and configurations for home internet.
Now, imagine having 10,000 of these documents and a single AI search bot
— a co-pilot, really — that can tell you what you need to know
instantly, personalized for that customer. That’s what we’re testing
now.
Another
example: Previously, the product development cycle was a series of
steps: develop requirements, build software, and release it. Then, take
feedback and update in the next IT release. Now, AI is constantly
learning and updating in near real time as we go so the turnaround is
much quicker. Today, AI gets trained based on our agents’ interactions.
We get real time feedback, so the evolution of AI is in sync with the
use of AI on the frontlines
We
are investing only in areas where we’ve measured progress and AI not
only informs us in real time, but it also improves our KPIs.
Sharpen Performance
Our
results are improving. Using the AI search bot, our answer accuracy
rate is on par with our human accuracy rate, but we believe we can bring
it to 99% accuracy. And it continues to improve every day, but the best
measure of success will be improving our net promoter scores, which is
our goal this year.
Similarly
with sales, we’ve already started to implement an AI tool to help us
anticipate what the customer might want and proactively provide them
with options. We capture a significant number of data points to help us
better serve our customers and based on that, we’re able to make over
100 different predictions that help us give them a far more personalized
experience — like the best network and content options based on their
interests, or a prompt on a promotion that’s unique to them based on
their tenure. When we can accurately and proactively identify what a
customer needs or wants, we can resolve questions on the first call.
This
type of proactive work has already helped us increase our sales
conversion rate by over 6%. That’s everything from new subscriber
signups to adding exclusive benefits and upgrades to higher-tiered
plans. AI is letting humans do what humans do best, by letting machines
do what machines do best.
And,
to punctuate my point, we’ve empowered our frontline teams to guide us
on how AI is best used to help them reduce cognitive load and provide
efficiencies in the way we serve our customers, so that they can focus
on human interaction, empathy, and exceeding the customer’s
expectations. There’s no czar in that customer transaction. There are
only decisions at the point of contact using the expertise of our
frontline employees. The performance results are then sent up the chain
so the whole organization can assess the process and fine tune across
the enterprise. We’ve decentralized the decision process in a quest to
find the best results.
Artificial
intelligence reminds me of the internet era in the early 2000s.
Everyone had a dotcom they stood up; but not all did really well. It
took more than adding an internet SVP position and a .com to your name.
Today, every company wants to use AI, but for long term success, it’s
going to take more than just putting an executive in charge. At Verizon,
the success and the failure of AI is owned not by a czar but by an
empowered set of stakeholders who can see results and customer
engagement and feedback as it comes in. Yes, as some have advocated
here
recently, organizations should have a clear vision for AI — and we do —
but as history has shown us, companies that harness the talent of their
frontline employees to create an operational edge win the day. This
time, with AI, it will be no different.
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