McKinsey reports that 60% of organizations that have adopted artificial intelligence (AI) are already using generative AI. Moreover, 75% of their respondents expect generative AI to cause “significant or disruptive change” to the competitive landscape in their industry in the next three years.

Effectively harnessing the power of AI will be key in remaining competitive. However, there are risks to jumping in without a plan. We’ve outlined the three steps to applying AI strategically across your organization.

Step 1. Prepare Your Data

AI relies heavily on high-quality data. You cannot begin to leverage AI in your organization unless you have a robust data strategy in place. That strategy must be reviewed often and adapted as your organization’s needs evolve.

The framework for any data strategy starts with an assessment. This systematic evaluation of your data assets, infrastructure, and practices provides the opportunity to make informed decisions about data initiatives, prioritize improvements, and establish a data roadmap. In assessing your data landscape, you’ll identify what data you have, where it’s stored, how it’s collected, and who uses it. You’ll also evaluate the quality of your data.

The information garnered from the assessment lays the groundwork for your strategy, which includes five key components: data governance, data architecture, data analytics and insights, data lifecycle, and technology and tools.

Step 2. Define Clear Business Objectives

Identify specific business objectives and goals that AI can help address. These objectives should be aligned with your organization’s overall strategy and should contribute to improved efficiency, customer satisfaction, revenue growth, or other key performance indicators. It’s crucial to understand what problems or opportunities AI can solve for your organization before you start applying it.

When AI initiatives are not aligned with clear business objectives, there is a risk of pursuing technology for technology’s sake. This misalignment can lead to a lack of meaningful outcomes and wasted resources. It becomes challenging to measure the impact and value that AI brings to the organization.

Step 3. Develop a Plan for Change Management

Successful integration of AI into your processes and culture is dependent on user adoption and a carefully thought-out approach to change management, including:

1. Clear Communication and Training: Effective communication is essential to inform employees about the purpose of AI, its benefits, and how it will impact their roles.
2. Engagement and Involvement: Actively involve employees by seeking their feedback and addressing any concerns.
3. Demonstrating Value and Measuring Success: Show the value and benefits of AI by providing examples and success stories.

Creating a supportive and inclusive environment where employees understand the value of AI, are equipped with the necessary skills, and actively participate in the adoption process is vital.

Define Your Digital Future

An advisor can help you develop a clear roadmap for applying AI strategically across your organization. If you’re not sure where to start, we’ve created a readiness assessment to help you gauge whether your organization is ready to start exploring AI’s capabilities.

A version of this article first appeared on EideBailly.com.

Eide Bailly is a nationally recognized certified public accounting and business advisory firm committed to helping clients grow, thrive, and embrace opportunities for innovation. With over 3,300 dedicated staff members, including CPAs and business advisors, the firm helps clients gain a new perspective of what’s possible and make that vision a reality through inspired ideas and solutions.