Getting AI to work for a company is not an easy or cheap task

20 August 13:48

The use of artificial intelligence tools by company employees and its “implementation” at the level of the company itself are very different things, which, accordingly, cost differently. Alexander Krakovetsky, AI expert and author of the course “Getting Started with ChatGPT”, wrote about this on his Facebook page.

In the post, the author polemizes in absentia with Vladislav Rashkovan, who in a recent publication wrote about “a team of advisors from Steve Jobs, Nelson Mandela, Oprah Winfrey and Ilon Musk”, which the president of the American SaaS company FliptRx, Vipin Gupta, created for himself for $20.

Cost of innovation: from $20 to millions

Alexander Krakovetsky expresses doubts about the stated cost of $20 per month, but generally supports the idea of virtual advisors.

“I don’t agree that it will be only $20, but even if it is 100 times more, for a company operating millions or billions of dollars – it is a drop in the ocean,”

– notes Krakowiecki. He emphasizes that the real value of such solutions is not in their cheapness, but in their potential effectiveness for big business.

The gap between personal and corporate use

Krakovetsky pays particular attention to the data cited in Rashkivan’s publication. As noted in the Forbes article, a study of INSEAD Business School professors in 2024 found a significant discrepancy: most directors regularly use AI in their personal endeavors, but almost never use the technology in their professional activities on boards.

“While top corporate executives cite increased use of AI as their number one priority, according to the Deloitte study, experiments like those conducted by Gupta remain rare in the corporate world.”

– krakowiecki quoted an excerpt from Rashkivan’s publication.

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Two key challenges to AI adoption

According to Alexander Krakovetsky, hidden in this data are two critical theses that he constantly emphasizes during various meetings and speeches.

The first problem: personal performance vs. corporate performance

“Personal performance does not equal corporate performance, and individual use of ChatGPT is not an ‘AI implementation’. Getting AI to work at the corporate level is not an easy task. And not cheap.”

– krakovetsky states categorically.

To illustrate the complexity of such projects, the AI expert gives a few examples from his own practice:

“In 2019, we made a CV-Job tagging algorithm by one person in a team and even achieved modest, but results. However, at the same time, a similar startup raised $29 million to solve this problem.”

Another example concerns legal-technology:

“Another project is trying to automate one of the legal scenarios. The company received $60 million in investment and hasn’t even reached 70% accuracy.”

A case study from Italy is particularly impressive:

“An Italian city wanted to analyze satellite imagery and look for undeclared swimming pools. The cost of implementation was more than 20 million dollars,” says the expert.

The expert also recalls another European experience of financing AI projects:

“Only for hypothesis testing a few years ago, the state fund of one European country gave 200 thousand euros. Without any requirements on the quality of the solution”.

The second problem: lack of real interest on the part of business

The second thesis concerns the practical perception of innovation by the corporate sector.

“There was not a single company, at which I told about multi-persona agents for strategic sessions and foresights (which, in fact, the publication is about), which would have been really interested in this approach”,

– krakovetsky shares his experience.

Alexander Krakovetsky notes that multi-persona agents are not the only approach among the available solutions.

“But all of them remain part of a beautiful powerpoint presentation”,

– states the specialist with some disappointment.

Balance between caution and innovation

The expert admits that critics may say “don’t push the horses” and will be right in a certain sense. However, he is convinced that it is bold steps that lead to real breakthroughs.

“True innovation is born on the edge of courage and knowledge.”

– sums up his position, emphasizing the importance of finding a balance between reasonable caution and willingness to experiment.

Conclusions

The case of FliptRx and virtual boards of directors demonstrates both the potential and challenges of the current state of AI technology implementation in business. On the one hand, technological capabilities already enable the creation of fairly sophisticated solutions at relatively low cost. On the other hand, the gap between personal use of AI and its corporate implementation remains significant.

According to the expert, successful implementation of artificial intelligence at the corporate level requires not only technological readiness, but also cultural changes in the organization, significant investments and willingness to experiment with uncertain results.

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Остафійчук Ярослав
Editor

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