Unlocking AI’s Transformative Potential for Competitive Edge

An AI face in profile against a digital background.
(Image credit: Shutterstock / Ryzhi)

AI isn’t just another technological wave - it’s the electricity of our era, set to power the next industrial revolution. Just as businesses that failed to embrace electrification were left in the dark, those that hesitate to integrate AI risk becoming obsolete as their competitors benefit from its efficiency and innovation.

I don’t think we can say any businesses are not considering how to weave AI tools into their organization. Instead, the conversation most heard today is how to do so in a way that ensures sustainable growth and maximized impact.

Paulo Pereira

VP, Systems Engineering, EMEA, Nutanix.

Data: The Cornerstone of AI

At the heart of AI lies data. Without high-quality, well-structured data, even the most advanced AI models will fail to deliver meaningful insights. Organizations must prioritize data readiness by ensuring it is appropriately structured, labelled, and protected from biases. Failing to do so risks compromising IT integrity, breaking existing security protocols, and reinforcing incorrect assumptions within AI-driven decision-making.

Data accessibility must be carefully controlled. AI thrives on information, but not all data should be universally available. Proper governance ensures that sensitive data remains protected while enabling AI models to function effectively. Companies that get data preparation right will unlock AI’s full potential, turning information into actionable intelligence.

Challenges in Scaling AI

Despite AI’s promise, scaling its implementation presents a series of complex challenges that businesses cannot afford to overlook. AI is a voracious consumer of computational power, demanding infrastructure that can keep up without sacrificing performance or usability. Without careful planning, organizations risk creating systems that are either too slow to be effective or too costly to sustain.

Beyond the technical demands, AI exists within an evolving regulatory landscape, particularly in highly governed industries where compliance is non-negotiable. The legal, ethical, and operational implications of AI adoption must be carefully scrutinized to ensure businesses remain within the bounds of regulation while still leveraging AI’s full potential.

Compounding these challenges is the reality that many organizations are still in the experimental phase, cautiously testing AI applications while trying to understand how best to integrate them into existing workflows. Finding feasible use cases, ensuring they deliver real value, and scaling them without causing operational disruptions requires a measured, strategic approach. Without it, AI risks becoming a costly experiment.

Building AI-Ready Infrastructure

Although IT infrastructure may not be the first consideration in an AI strategy, it plays a crucial supporting role. Organizations must assess where their data resides - on-premises, in the cloud, or at the edge. And ensure their networks can handle the high-volume data transfers required for AI workloads. Inference points must also be sufficiently equipped to process information efficiently.

The goal should be to select the smallest, most efficient models that meet business requirements. Overengineering AI infrastructure leads to unnecessary costs and complexity, diverting resources from where they are most needed.

In so far as navigating the “where AI lives” question. A hybrid cloud approach offers the best of both worlds: the flexibility and scalability of public cloud environments alongside the control and security of private infrastructure. Sensitive data often necessitates on-premises deployment, while AI-driven customer-facing applications may benefit from cloud-based scalability. A unified development environment supporting private and public infrastructures enables seamless integration and optimal performance.

AI as a Tool for Productivity Gains

AI’s primary role is to enhance productivity across an organization. From automating repetitive tasks to personalizing customer interactions, AI is already demonstrating its ability to drive efficiency. Practical applications include:

  • AI-generated personalized marketing emails tailored to individual customer preferences.
  • Speech-to-text technology that streamlines email drafting and communication.
  • Automated sales processes, such as generating quotes and proposals faster and more accurately.
  • AI-powered forecasting for supply chain optimization, reducing operational inefficiencies.
  • AI-driven anomaly detection to strengthen cybersecurity defenses.
  • Intelligent document management processing to streamline financial and legal workflows.

Incremental improvements in these areas collectively contribute to significant efficiency gains, allowing businesses to focus on strategic priorities rather than routine administrative burdens.

The Urgency of AI Adoption

Where to start? Companies should take a phased approach, moving from exploration to full-scale implementation with careful planning. The journey begins by identifying a practical AI use case with a clear return on investment that solves a real business challenge rather than being implemented for AI’s sake. Once a use case is defined, organizations must assess their data readiness, ensuring that information is structured, accessible, and secure while considering regulatory and ethical implications.

With the groundwork in place, the next step is to pilot AI projects within a controlled environment, testing them with small teams before rolling them out more broadly. This allows for refinement, addressing unforeseen challenges before they become costly missteps. Finally, optimizing AI models and continuously refining processes ensures long-term success. AI is not a static investment; it evolves, and organizations must monitor its impact, fine-tune its applications, and uphold ethical considerations to maximize its transformative potential.

A Transformative Power

Businesses can effectively harness AI's transformative potential by focusing on tangible, achievable goals and ensuring a robust data and infrastructure foundation. However, success lies in a strategic, well-planned approach prioritizing data integrity, infrastructure scalability, and AI’s role as an enabler of productivity and growth.

AI will soon become as indispensable as electricity, and organizations that fail to integrate it effectively will struggle to remain competitive.

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This article was produced as part of TechRadarPro's Expert Insights channel where we feature the best and brightest minds in the technology industry today. The views expressed here are those of the author and are not necessarily those of TechRadarPro or Future plc. If you are interested in contributing find out more here: https://www.techradar.com/news/submit-your-story-to-techradar-pro

VP, Systems Engineering, EMEA, Nutanix.

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