Artificial Intelligence Here and Now: Managing Through Hype and Reality

Abstract

What tangible use does artificial intelligence (AI) have in a typical business setting? In this fictional case, Viviana Valenty, chief technology officer of e-commerce company Corellia, must decide how to incorporate AI in Corellia's business model to satisfy its main investor. She considers potential use cases for AI in each of Corellia's five departments: finance, customer service, marketing, operations and warehouse, and content. Each department's needs and opportunities are unique, and she must weigh how feasible it is to implement AI-based solutions in each case and how they will affect Corellia's stakeholders, including investors and workers. In which department should she recommend Corellia implement AI? How much funding should she request? Finally, should Corellia implement the AI initiative in-house or through outsourcing? Excerpt UVA-OM-1724 Mar. 16, 2021 Artificial Intelligence Here and Now: Managing through Hype and Reality The playing field is poised to become a lot more competitive, and businesses that don't deploy AI and data to help them innovate in everything they do will be at a disadvantage. Paul Daugherty, Chief Technology and Innovation Officer, Accenture It was an overcast, foggy Friday afternoon in Boston, typical for the time of year but not helpful to Viviana Valenty as she faced difficult decisions. Valenty was the chief technology officer (CTO) of Corellia, an e-commerce and logistics furniture, clothing, and electronics company. During the board meeting the week before, Corellia's main investor, Creant Capital (Creant), had informed the management team that Creant would not participate in the new round of funding unless Corellia found a way to employ artificial intelligence (AI) in its business operations. Although a report by the Boston Consulting Group in late 2020 had indicated that only 11% of companies were reaping significant rewards from AI in their operations, Creant was adamant that its portfolio companies challenge themselves to find a way to incorporate AI into their business models. Having a long-standing major investor not participate in a new round of financing would be a major blow to a company's valuation and could even be a death sentence. . . .