A strategic approach to assessing your AI readiness

eing industries like retail, healthcare, financial services, and manufacturing increasingly use AI to drive innovation and efficiency. Yet many businesses are still in the process of developing their AI strategy. 

If you’ve read The AI Strategy Roadmap: Navigating the stages of value creation, you’re already familiar with the five drivers of AI value. This research paper and blog series explore what organizations need to succeed with AI, including establishing a clear strategy and securing senior leadership support. Our research found that AI success isn’t solely about technology—strategic, organizational, and cultural factors are equally critical.

We’ve heard from customers that it’s crucial to consider how prepared your organization is for this technological leap. In this blog post, we’ll share some learnings to help you gauge your AI readiness so you can plan how to move forward effectively.

Assess your AI readiness

When I meet with customers, they often share that they’re not sure where to start when it comes to assessing their readiness for large-scale AI transformation. It requires a strategic approach to understand your current capabilities, identify areas for improvement, and align these efforts with your business priorities to focus on the areas that will deliver the highest value. We’ve created a new AI Readiness Wizard to help you get started in evaluating your preparedness. Use the assessment to:

• Evaluate your current state. The assessment includes questions that help you determine how well your AI objectives align with your business priorities and the effectiveness of your current data access and security measures. Understanding your starting point is essential for identifying the right next steps.
• Identify gaps. By scoring your responses in the assessment, you can identify focus areas that may need more attention, such as business strategy, AI governance principles, or team expertise. This step helps prepare you for formulating a clear path forward and addressing specific areas for improvement.
• Plan your next steps. Based on your scores, the assessment categorizes your readiness into one of five stages: exploring, planning, implementing, scaling, or realizing. Each stage represents a different level of AI maturity and preparedness, guiding you on where to focus your efforts:
  • Exploring—At this stage, focus on building your AI strategy and experience. You might want to learn about key AI concepts and explore how AI is transforming the business landscape.
  • Planning—Here, you’ll concentrate on formalizing your business strategy. Look at the ways other organizations are driving value with AI and develop an informed plan for prioritizing AI projects.
  • Implementing—This stage involves focusing on leadership support and scaling AI expertise. Ensure you have the necessary resources and expertise to execute your AI initiatives effectively.
  • Scaling—At this level, you’ll aim to create an organization and culture of innovation. Scale your AI initiatives and begin analyzing the impact of AI in your organization.
  • Realizing—Focus on fostering continuous innovation within every team and the organization. Aim to embed AI technology in your operations and culture for sustained value creation.

Assessing your AI readiness requires a strategic approach to understand your current capabilities and identify areas for improvement.”

This assessment offers a structured way to reflect on your current practices and identify key areas to focus on as you develop your strategy for the future. You’ll also find resources for each stage to help you advance.

How AI is reshaping industries

Financial services

We’re seeing the financial services sector make rapid advancements in AI readiness, with 40% of organizations currently in the “implementing” stage. According to recent research, 70% of financial services organizations are using big data analytics in their operations, and 27% have piloted AI applications or AI-assisted solutions.

Additionally, more than half are allocating budgets for AI projects, providing AI-specific training, and fostering internal knowledge sharing. This commitment has enabled 27% of firms to reach the “scaling” and “realizing” stages, surpassing the 25% industry benchmark.

Healthcare

The healthcare industry shows a diverse mix of AI readiness, with 28% of organizations in the “scaling” and “realizing” stages, according to one study. Notably, 44% are actively laying the groundwork in the “exploring” and “planning” stages, focusing on learning and developing their AI strategies. The sector leads in overall maturity, but 14% of organizations report receiving no discernible value from AI, highlighting challenges in measuring the impact of AI investments within their broader business strategies.

Manufacturing

With 38% of organizations in the manufacturing industry still in the “exploring” and “planning” stages, many are focused on learning and developing AI strategies. Research shows that manufacturers actively deploy AI across operations, research and development (R&D), and supply chain management to address key business challenges. 25% believe they achieve significant value from AI implementation.

Manufacturing organizations also have a greater likelihood of appointing AI leadership, which we’re learning enables them to excel in fostering the operational and cultural factors that support value creation, resulting in more firms reaching the “realizing” and “scaling” stages.

Retail

We’ve seen a wide range of AI readiness in the retail sector. While some retailers use AI to enhance customer relationships and drive revenue, research shows that 43% are still in the “exploring” and “planning” stages. This divide is evident between those who adopted cloud technology early—about 25%—and those who have yet to embrace it, with 8% still not using cloud services. Notably, 21% of retailers have a chief AI officer, highlighting commitment among leadership to embed AI into their operations.

Map your AI journey

After assessing your readiness and gathering insights, you’ll want to outline a plan to address gaps and advance through the stages of AI maturity. Our findings at Microsoft have shown that crafting a strategic plan outlining how AI technology will fit into your organizational framework is a great place to start. The AI Strategy Roadmap: Navigating the stages of value creation is a valuable resource designed to guide you through this process.

As you define your AI strategy and roadmap, you might find our e-book, Building a Foundation for AI Success: A Leader’s Guide, helpful in identifying key focus areas for AI implementation.

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Source: Microsoft Industry Blog