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As organizations navigate the complexities of digital transformation, one question repeatedly arises:

“How do we shift from functional design to horizontal design when designing our Operating Model?”

Traditionally, functions like Finance, Procurement, Operations, and Marketing operate within their own silos, each developing its own operating model. However, to drive efficiency and enhance customer experience, organisations must transition to a horizontal, customer-centric design that integrates all functions seamlessly.

This transition is particularly critical as organizations incorporate AI into their end-to-end processes. AI’s potential can only be fully realized if it is embedded in a structure that fosters cross-functional collaboration, data-driven decision-making, and seamless process integration.

 

Key Strategies for a Horizontal Operating Model

 

1. Establish Common Design Principles

Even if different teams work independently, aligning on a shared set of design principles ensures consistency across the organization. This alignment fosters interoperability, clarity in decision-making, and a uniform approach to AI-driven transformation.

 

2. Develop an Operating Model Blueprint

To break down silos, organizations need a high-level Operating Model Blueprint—a single-page visual representation of how various functions interact. This helps teams drill down into their specific designs while maintaining a unified, enterprise-wide perspective.

 

3. Define End-to-End Processes & Value Streams

End-to-end processes like Source-to-Pay (S2P) or Order-to-Cash (O2C) serve as the foundation for horizontal design. They ensure visibility across functions, clarify handoffs, and eliminate inefficiencies in workflows spanning multiple departments. This approach forces an organization-wide mindset, promoting AI’s role in optimizing these processes.

 

4. Identify Shared and Unique Business Capabilities

Understanding the organization’s core business capabilities—both shared and function-specific—prevents redundant efforts and encourages resource optimization. A well-defined capability model helps leaders identify synergies across teams, ensuring AI investments deliver enterprise-wide benefits.

 

5. Implement Cross-Functional Governance

Governance should be an enabler, not a bottleneck. Establishing a governance framework ensures alignment between teams, facilitates collaboration, and prevents duplication of AI-powered initiatives. It also creates clear communication channels to sustain horizontal integration.

 

6. Establish a Convergence Point in Delivery

At some stage, all functions must come together—whether at the start of detailed design or during execution. Convergence helps prioritise initiatives based on enterprise-wide value, rather than individual departmental gains. AI implementation particularly benefits from this approach, ensuring resources and technologies are deployed strategically.

 

7. Build on Existing Work, Not Against It

Transformational change is most effective when it complements ongoing efforts. Instead of disrupting current initiatives, organizations should focus on enhancing existing processes and integrating AI solutions where they add the most value. This collaborative mindset fosters a smoother transition to a horizontal model.

 

Why This Matters Now

The shift to a horizontal design is not just a structural change—it’s a strategic necessity in today’s AI-driven world. Organizations that successfully transition can achieve:

With AI at the core, organizations must ensure their operating models evolve to support digital transformation, intelligent automation, and business process optimization. A siloed approach will only limit AI’s impact, while a horizontal, integrated structure will enable long-term, scalable success.

 

Final Thoughts

Transitioning from a functional to a horizontal operating model is challenging, particularly in large, complex organizations. However, businesses that embrace a cross-functional, AI-integrated approach will be better positioned to drive operational excellence and unlock future growth.

The Power of AI in Process Optimisation

Organisations are increasingly recognising AI's potential to enhance operational efficiency. However, many implementations deliver only marginal gains because AI is often treated as an auxiliary tool rather than a core enabler. A more transformative approach involves embedding AI at the heart of process design, enabling a fundamental shift in efficiency and effectiveness.

A Three-Step Approach to AI-Enabled Process Redesign

 

1. Build AI Literacy as a Foundation

The first step is developing a strong understanding of AI and automation technologies, including:

By establishing this knowledge base, organisations can identify high-impact opportunities and redefine processes with AI at their core.

 

2. Reimagine Processes with AI at the Centre

Rather than layering AI onto existing workflows, companies should rethink processes from the ground up, focusing on:

 

3. Implement AI in Phases for Maximum Value

A phased implementation ensures smoother transitions and continuous value realisation. This includes:

 

Real-World AI Integration Examples

AI in Employee Onboarding

Traditional onboarding involves manual data entry and fragmented communication. AI can streamline this by:

AI in Meeting Management

Meetings often suffer from inefficiencies in scheduling, note-taking, and follow-ups. AI can enhance productivity through:

 

Key Considerations for Effective AI Integration

To achieve meaningful efficiency gains, organisations must:

 

Conclusion

Organisations looking to achieve breakthrough efficiency should prioritise AI-driven process design. By embedding AI as a foundational element, adopting a structured methodology, and iterating based on real-world insights, companies can unlock significant operational advantages and drive sustainable growth.

The procurement landscape is rapidly evolving, with increasing pressure on organisations to reduce costs, streamline processes, and make smarter purchasing decisions. As traditional procurement methods struggle to keep up with growing complexities, AI and automation are emerging as powerful tools that can transform the way procurement operates.

AI in procurement offers more than just cost savings—it brings a new level of insight and efficiency. From predicting demand to automating supplier management, AI-driven tools allow procurement teams to focus on strategic activities while leaving repetitive tasks to intelligent systems.

This white paper explores how AI and automation can help procurement teams achieve their goals. We delve into specific use cases, such as predictive analytics for spend forecasting, automating supplier onboarding, and AI-driven decision-making in sourcing. Additionally, we outline the critical success factors for implementing AI solutions and provide a roadmap to realising the full benefits of these technologies.

As organisations navigate economic uncertainty and increasing global competition, AI in procurement provides a clear path to optimising processes, reducing risks, and driving long-term value.

 

The employability sector faces growing challenges in meeting the demands of participants, providers, and funders alike. With increasing administrative burdens, tighter budgets, and the pressure to deliver better outcomes, organisations are seeking innovative solutions to optimise their processes and enhance participant engagement.

AI and automation present a powerful opportunity to transform the employability landscape. By integrating these technologies, providers can streamline administrative tasks, personalise participant support, and make data-driven decisions that improve overall outcomes.

This white paper explores how AI and automation can help employability providers reduce admin, increase participant engagement, and improve job outcomes. It outlines key use cases, including automating participant communications, predictive tools to identify high-impact factors for job success, and optimising case management. Additionally, we examine the critical success factors necessary for a smooth AI implementation and provide actionable insights for realising the full benefits of these technologies.

How AI and Automation Can Help Optimise Costs in Higher Education

Higher education institutions in the UK are facing unprecedented challenges. With Brexit making it more difficult to attract international students—who often contribute significantly to university revenues—the sector is feeling the strain. Adding to this pressure, the government has made it clear that it won’t be offering financial bailouts to universities, forcing institutions to take decisive action to manage their costs. As a result, cuts must be made, and universities are under increasing pressure to streamline their operations without compromising on the quality of education.

The Slow Road of Traditional Cost-Cutting Measures

In response to financial strain, many universities are resorting to organisational redesigns, such as restructuring departments and cutting underperforming courses. While these measures can lead to cost reductions, they often take a long time to materialise. Courses may need to be wound down over several years, leading to a delayed realisation of benefits and return on investment (ROI).

Given the urgency of the current situation, relying solely on traditional approaches may not be sufficient to safeguard the financial sustainability of universities.

The Fast-Track Solution: AI and Automation

This is where AI and automation come into play. By integrating these technologies into university operations, institutions can accelerate cost-saving measures while unlocking long-term value. AI and automation provide immediate relief by reducing the administrative burden, freeing up staff capacity to focus on higher-impact work, and improving operational efficiency.

The key benefits of implementing AI and automation include:

  1. Reduction in Administrative Workload
    University staff often spend significant time on repetitive, manual tasks, such as data entry, managing timetables, or processing student applications. AI-driven tools can handle these tasks with greater speed and accuracy, freeing up time for staff to engage in more meaningful work, such as student support or research.
  2. Optimisation of Student Services
    Automation can enhance the student journey by streamlining processes like enrolment, course registration, and grading. By automating these functions, universities can provide a smoother and more personalised student experience, improving satisfaction while reducing operational costs.
  3. Data-Driven Decision Making
    AI can also help institutions make smarter decisions by analysing large datasets related to student performance, retention, and course demand. Predictive analytics tools can identify trends and potential issues, allowing universities to proactively adjust their strategies and resources for better outcomes.

Critical Success Factors for AI Implementation

While AI and automation present exciting opportunities, their success hinges on certain critical factors:

  1. Leadership Buy-In
    For any AI initiative to succeed, it’s crucial to have support from senior leadership. University leaders must understand the potential of AI and automation, not only as a cost-saving tool but also as a means of enhancing the student experience.
  2. Clear Objectives and Metrics
    Universities need to define clear goals and success metrics before implementing AI solutions. Whether the aim is to reduce costs, improve student retention, or enhance administrative efficiency, having measurable outcomes will ensure that the implementation delivers tangible benefits.
  3. Training and Upskilling Staff
    While AI can take over many administrative tasks, the human element remains essential. Universities must invest in training and upskilling their staff to work alongside AI tools, ensuring they can maximise the benefits of the technology while maintaining a high level of student engagement and support.
  4. Ongoing Evaluation and Adaptation
    Implementing AI is not a one-time exercise. Institutions need to continuously evaluate the effectiveness of their AI tools and adapt them to meet changing needs. By regularly reviewing performance and gathering feedback, universities can fine-tune their AI strategies to achieve the best results.

Conclusion: The Way Forward

With Brexit-related challenges and limited government support, it is a critical time for UK universities to rethink their cost structures. While organisational redesigns and course reductions are traditional approaches, they may take too long to deliver the necessary impact. AI and automation offer a faster, more sustainable solution, providing immediate cost relief and enabling universities to focus on what they do best—delivering high-quality education.

By embracing AI and automation, universities can streamline their operations, enhance student experiences, and unlock long-term savings, all while positioning themselves for a successful future in an increasingly competitive landscape.

In this post, we’ll explore how AI and automation are transforming the future of procurement and sourcing.

AI-Driven Sourcing & Supplier Selection

Imagine starting your sourcing process with AI analysing vast amounts of data to find the best suppliers. Machine Learning, analyses key factors like cost, quality, risk, and sustainability to recommend the most suitable suppliers. It continuously learns from past decisions, refining its recommendations over time.

Autonomous Negotiation and Contract Management

AI Agents manage routine supplier outreach and basic negotiations, while complex issues are escalated for human intervention.

Generative AI adds further value in contract management. It can draft standard contracts, extract key information such as payment terms, and track contract performance. AI tools can automatically monitor contract details, flagging potential risks like overspend or missed deadlines before they become problems, ensuring full visibility and control without the need for constant manual oversight.

Predictive Pricing and Spend Management

Machine Learning and AI-powered analytics are driving predictive pricing and spend management. By analysing historical data, market trends, and supplier performance, AI can forecast future price fluctuations. This gives procurement teams a heads-up on upcoming changes, allowing them to act early, lock in favourable prices, and avoid unexpected cost hikes.

Much like monitoring stock prices for the best time to buy, AI keeps a close watch on market conditions and alerts businesses when the optimal moment to make purchasing decisions arises. AI also runs simulations to show how changes in suppliers or consolidating spend could impact overall costs, providing data-driven insights for better decision-making.

A Day-In-The-Life-Of a Category Manager: Picturing the Category Manager’s Role with AI

Morning: Reviewing AI-Generated Insights

As you start your day, AI tools have already processed supplier data, market trends, and internal performance metrics. The system flags a potential price increase for a key material and suggests an alternative supplier. With just a few clicks, you can assess the AI’s recommendations and make an informed decision quickly.

Midday: Automating Supplier Negotiations

By midday, an AI agent is handling basic supplier negotiations, while AI tracks contract details, allowing you to step in only for complex discussions. This frees up time for you to focus on building deeper relationships with key suppliers and identifying further opportunities for cost optimisation.

Afternoon: Predictive Spend and Strategic Optimisation

In the afternoon, AI flags procurement categories that could benefit from cost-saving measures. You use AI tools to run simulations and scenario analyses, evaluating the potential outcomes of switching suppliers or renegotiating contracts. AI gives you clear, data-driven insights, helping you make confident, proactive decisions that enhance overall procurement efficiency.

End of Day: Planning Ahead with AI Insights

As your day winds down, AI alerts you to upcoming contract renewals or potential supply chain risks. Armed with this real-time information, you begin planning future procurement strategies, confident that AI will continue to support you in making smarter decisions.

Conclusion: The Future of Procurement is Here

AI and automation are revolutionising procurement and sourcing. From supplier selection to contract management, predictive pricing, and spend optimisation, tools like Machine Learning and Generative AI are enabling businesses to work more efficiently and make smarter decisions.

For Category Managers, AI shifts the focus from routine, time-consuming tasks to high-level strategic work. AI empowers you to make informed, proactive decisions that lead to better supplier relationships, cost savings, and improved overall procurement performance. The future of procurement is here, and businesses that adopt AI-driven technologies will stay ahead in this rapidly evolving space.

Introduction

Delivering successful change initiatives, particularly when integrating AI, requires more than just deploying technology. Organisations that thrive in transformation understand that principles such as clarity, leadership, and strategy alignment are critical for both traditional change and AI-driven transformation. In this blog, we’ll explore the key principles that underpin effective change and how these same fundamentals are essential to AI transformation.

The Challenge

Many businesses struggle to implement change initiatives effectively, often due to a lack of clear direction, inadequate leadership, or insufficient relevance to the workforce. Similarly, AI transformations are often derailed by excitement over technology rather than a structured approach. Without a strong foundation, AI projects can fail to deliver value, becoming just another underutilised tool.

Below, we outline the principles that ensure successful change initiatives and how they also apply to AI transformation.

1. Clarity of Vision

For any transformation, clarity is the first step to success. A well-defined vision provides direction and purpose, especially in AI projects where the complexity of the technology can overwhelm teams. Your AI transformation must begin with a clear understanding of the business challenge you're addressing and how AI will deliver tangible value. Without this, teams may lack focus, and the project risks veering off course.

2. Strong Foundation in Process and Data

Even the most advanced AI technologies require solid foundations to succeed. This means your organisation must have strong processes and reliable, well-organised data. Before embarking on an AI initiative, ensure that your data infrastructure and operational processes are capable of supporting the new technologies. AI must build upon solid processes and accurate data to drive meaningful outcomes.

3. Adequate Time and Resources

Successful change isn’t achieved on the sidelines, and neither is AI transformation. Both require dedicated resources, including skilled personnel and sufficient time for implementation. Organisations often underestimate the time and investment needed for successful AI deployment, treating it as a secondary task. For AI to deliver real value, it requires focus, budget allocation, and ongoing support.

4. Strategic Investment

Investment goes beyond financial support. Strategic investment in AI transformation means allocating not only money but also human capital and infrastructure. Your AI initiatives should be integrated into the broader business strategy, with investments directed toward long-term sustainability, including future-proofing, upgrades, and continuous improvements.

5. Shared Accountability Across Leadership and Teams

Change initiatives work best when both leadership and teams share responsibility. The same applies to AI projects, where shared accountability between AI developers, business units, and leadership is crucial. Leaders must remain engaged throughout the project lifecycle, driving alignment with the business’s strategic goals. A lack of leadership involvement can result in misalignment and missed opportunities for optimisation.

6. Stakeholder Relevance

Successful change occurs when stakeholders understand the personal and professional relevance of the transformation. AI transformation must not only be seen as a business imperative but also show individual benefits—whether it’s reducing repetitive tasks or improving decision-making accuracy. Clear communication about how AI impacts various teams ensures greater buy-in and adoption.

7. Leadership to Drive Transformation

Effective leadership is critical for any transformation initiative. Whether for business change or AI deployment, leaders are the driving force that ensures the project maintains momentum and stays on track. Leadership must communicate the vision, resolve challenges, and ensure that AI initiatives deliver the desired outcomes. Strong leadership creates confidence in both the technology and the process.

8. Focus on Solving Real Business Problems

Both change and AI must address real, tangible business problems. Implementing AI for its own sake risks wasted resources and frustration. Instead, AI should be a tool to solve operational challenges, automate mundane tasks, or extract new insights from data. By focusing on solving real problems, AI delivers value that is directly tied to business outcomes.

9. Alignment with Overall Strategy

AI transformation, like any change initiative, must be fully aligned with the company’s broader business strategy. AI adoption should not be driven by external hype but by how it supports long-term objectives. Ensuring strategic alignment from the outset allows AI to become a core enabler of the business rather than a standalone experiment.

10. Sustaining the Change Over Time

A successful AI transformation doesn’t end with deployment—it requires ongoing governance and support. Without sustainability measures in place, the value of AI solutions diminishes over time. Establishing clear ownership, ensuring regular updates, and maintaining the system are key to delivering long-term success. This step is crucial to keeping the transformation relevant and valuable.

11. Clear, Measurable Benefits

AI transformation, like any successful change initiative, must deliver measurable outcomes. Whether it’s cost savings, efficiency gains, or improved customer experiences, the benefits of AI need to be clearly defined, measured, and communicated. Organisations should track these outcomes closely to ensure continued investment in AI delivers ongoing value.

12. Action-Oriented Approach

Effective transformation requires action, not just planning. AI projects should focus on delivering tangible results early on, avoiding the common trap of over-analysis. Quick wins build momentum, demonstrate value, and help maintain organisational support. By staying action-oriented, organisations can move from concept to reality more efficiently.

Conclusion

The principles of effective change are universal, and they apply equally to AI transformation. By focusing on clarity, strong leadership, alignment with strategy, and delivering measurable outcomes, organisations can navigate the complexities of AI and ensure it becomes a sustainable driver of business value. When AI transformation is approached with these core principles in mind, it delivers not just technological change but lasting business impact.

 

FAQs

Microsoft Co-Pilot vs. Google Gemini vs. ChatGPT: Which AI Assistant is Right for Your Business?

Generative AI chatbots are becoming essential tools for businesses, enabling automation, increasing productivity, and fostering creativity. With top players like Microsoft Co-Pilot, Google Gemini, and ChatGPT, the challenge is selecting the right AI solution for your business. In this detailed comparison, we’ll explore their key features, help you evaluate which fits your needs best, and even discuss when building a custom AI digital assistant might be the smarter choice.

What is Microsoft Co-Pilot?

Microsoft Co-Pilot is a generative AI assistant designed to work within the Microsoft 365 ecosystem, integrating with Word, Excel, PowerPoint, and Outlook. Released in 2023, Co-Pilot leverages OpenAI’s GPT-4 to automate repetitive tasks, provide data insights, and streamline document creation.

Key Features of Microsoft Co-Pilot:

What is Google Gemini?

Google Gemini is Google’s generative AI chatbot, launched to integrate into Google Workspace tools such as Docs, Gmail, Sheets, and Slides. It replaced Google Bard and offers powerful text generation and image creation capabilities. However, full integration with Google Workspace is still underway.

Key Features of Google Gemini:

Google Gemini

What is ChatGPT?

ChatGPT, created by OpenAI, is a widely popular conversational AI solution. Available in a free version powered by GPT-3.5 and a Plus version with GPT-4, ChatGPT is known for its versatility, handling tasks from content creation and coding assistance to customer service.

Key Features of ChatGPT:

Chat GPT

Evaluation Criteria for Choosing the Right AI Assistant

Choosing between Microsoft Co-Pilot, Google Gemini, and ChatGPT depends on several factors. Below are the top seven evaluation criteria to help guide your decision:

1. Cost

Microsoft Co-Pilot and Google Gemini charge approximately £20-30 per user/month, while ChatGPT offers a free version and ChatGPT Plus at £20/month, making it more flexible for budget-conscious businesses.

2. Cloud Integration

Microsoft Co-Pilot integrates with Microsoft 365, making it ideal for businesses already using Microsoft tools. Google Gemini works best with Google Workspace, while ChatGPT is cloud-agnostic but may require custom integration depending on your setup.

3. Use Case

Microsoft Co-Pilot is ideal for automating business productivity tasks within Microsoft 365 apps. Google Gemini excels in creative tasks like writing and brainstorming in Google Docs. ChatGPT is versatile across many use cases, including content creation, coding, and customer service.

4. Security and Compliance

Microsoft Co-Pilot offers enterprise-grade security, suitable for industries with strict data protection requirements such as GDPR and HIPAA compliance. Google Gemini and ChatGPT also offer security features, but it’s important to verify if they meet your specific data privacy needs.

5. Ease of Use

Google Gemini is the easiest to navigate with a clean interface, while Microsoft Co-Pilot offers more comprehensive features that can feel cluttered. ChatGPT is user-friendly and works well across platforms.

6. Scalability

ChatGPT is known for its scalability, with flexible API integration options. Both Microsoft Co-Pilot and Google Gemini offer structured but scalable solutions that can grow with your business.

7. AI Performance

Microsoft Co-Pilot excels in business and data-related tasks with a focus on accuracy. Google Gemini is great for creative outputs, though it may require more fact-checking in technical tasks. ChatGPT strikes a balance, excelling in conversation-based tasks, content creation, and problem-solving.

When to Consider Building a Custom AI Digital Assistant

While off-the-shelf AI solutions like Microsoft Co-Pilot, Google Gemini, and ChatGPT provide excellent functionality, there are cases where building a custom AI digital assistant might be the smarter choice. Here are scenarios where custom AI development could be beneficial:

1. Highly Specific Business Needs

If your business has specialised workflows or unique requirements, a custom AI solution can offer features that off-the-shelf AI tools can’t. For example, businesses in healthcare or finance may need AI tailored to meet industry-specific regulations.

2. Full Control Over Features

A custom AI solution provides complete control over features and integrations. You can tailor the AI to work seamlessly with your existing systems and processes, ensuring it aligns perfectly with your business needs.

3. Enhanced Security and Compliance

For industries with strict security protocols, like government or financial services, a custom AI solution can be designed with specific compliance and security measures in place. This allows for greater control over data handling, privacy, and adherence to regulations.

4. Long-Term Cost Efficiency

While a custom AI solution may require a higher upfront investment, it can offer long-term savings by being designed specifically for your business. Over time, a custom AI assistant can reduce inefficiencies and deliver a better return on investment (ROI) than a generic tool.

Conclusion: Which AI Assistant is Best for Your Business?

Choosing between Microsoft Co-Pilot, Google Gemini, and ChatGPT depends on your business’s unique needs, technology infrastructure, and budget.

If your business has specific requirements that off-the-shelf AI solutions can’t meet, building a custom AI digital assistant could provide the tailored features, security, and long-term scalability you need.

By carefully considering the evaluation criteria outlined in this article, you can make an informed decision that will help your business maximise productivity and innovation using the right AI assistant.

7 Common Reasons Your AI Digital Assistant Will Fail (And How to Fix Them)

Building an AI digital assistant sounds like an exciting venture. Whether it’s for a specific function or general knowledge base tasks, the promise of automation and efficiency is hard to resist. From building custom AI  chatbot to integrating Microsoft Co-Pilot or using models like OpenAI’s ChatGPT, the appeal of AI-driven automation is undeniable. But here’s the reality: your AI digital assistant will likely face challenges at first. Knowing what to expect and how to address potential pitfalls is key to success.

This doesn’t mean you shouldn’t build one, but you need to know what to expect and how to mitigate potential issues. Here are seven common reasons your AI digital assistant may fail and how to fix them.

1. It Will Cost More Than You Think

When developing an assistant, costs often escalate, especially if you're using advanced models like GPT-4. As usage grows, so do expenses for processing power and storage. The more your assistant interacts with users, the higher the cost of managing and scaling your system.

How to overcome it:
When planning your AI digital assistant, factor in scaling costs upfront. Evaluate the most suitable AI models for your business needs, and explore cost-effective alternatives for basic tasks to avoid over-reliance on expensive models.

2. Hallucinations in AI Digital Assistants

Large Language Models (LLMs) like GPT-4 can produce "hallucinations," where the model generates incorrect or unsupported information. This is a serious problem when using an AI digital assistant for business-critical tasks or customer interactions.

How to avoid this:
Implement fact-checking mechanisms and design your AI digital assistant to pull from verified data sources. Proper development and training can significantly reduce the chances of hallucinations.

3. Your Data Will Likely Be a Mess

Your AI digital assistant will only be as good as the data it’s trained on. Many businesses try to point their assistant at unstructured, incomplete, or inaccurate data, leading to poor results and frustrated users.

Solution:
Clean and structure your data before using it to train your AI digital assistant. Ensuring that your data is accurate and well-organized will lead to better and more reliable performance.

4. Inconsistent or Poor Responses

An AI digital assistant won’t automatically produce perfect results. Without proper development and continuous learning, responses can be inconsistent or even irrelevant, which will frustrate users and reduce the assistant’s effectiveness.

How to fix it:
Work with experienced AI developers who understand the nuances of AI system development. Additionally, ensure your team is trained to ask the right questions for more accurate responses from the assistant.

5. People Will Be Disappointed

Initial expectations for AI digital assistants are often unrealistically high. People expect seamless interaction and flawless automation, but your AI digital assistant will likely require iterations and improvements over time.

How to manage this:
Set realistic expectations with your users from the outset. Be transparent about the assistant's development and emphasize that improvements will occur over time. Clear communication can help users appreciate the long-term benefits and avoid frustration in the early stages.

6. You’ll Need Proper AI Developers

Many businesses assume that building an AI digital assistant is easy with no-code platforms. However, successful AI development requires experienced developers who understand API integration and the broader infrastructure required to make everything work.

Action:
Invest in AI developers with the right expertise. Having the right team ensures that your AI digital assistant functions smoothly and integrates effectively into your existing systems.

7. People Won’t Use It Without Process Change

Even the most advanced AI digital assistants won’t succeed if the underlying business processes aren’t adjusted. Your assistant needs to fit seamlessly into your team’s workflows.

What to do:
Redesign your workflows to incorporate the capabilities of the AI digital assistant. Clearly communicate the benefits, such as time savings or improved accuracy. Without proper process adjustments, your AI assistant may be underutilized or ignored altogether.

 

Key Takeaway: Prepare for a Journey, Not a Quick Fix

Building a successful AI digital assistant is not an overnight process. Expect challenges such as cost overruns, data cleanup, and user adoption hurdles. However, with proper planning, expert development, and realistic expectations, your AI digital assistant can become a valuable asset to your business.

FAQs

Q: What’s the best way to avoid high costs with GPT-4 or similar models?
A: Use a hybrid approach where complex tasks are handled by LLMs like GPT-4, and simpler tasks are managed by more cost-effective tools. Plan for long-term costs when designing your AI project.

Q: How can I avoid hallucinations in my AI digital assistant’s responses?
A: Use retrieval-augmented generation and integrate fact-checking mechanisms into your assistant’s design. Additionally, ensure the model is trained on clean, accurate data sources.

Q: How do I make sure people actually use the AI digital assistant?
A: Focus on process redesign and clearly communicate the assistant’s benefits. AI for process automation only works when users understand how it fits into their daily workflows.

 

A Guide to Large Language Model Selection: Selecting the Right One for Your Business

In recent years, Large Language Models (LLMs) have rapidly evolved, becoming a cornerstone of artificial intelligence applications in businesses. The release of tools like ChatGPT has brought LLMs into the spotlight, showcasing the potential of Generative AI for automating tasks, creating content, and transforming customer experiences. But how do LLMs work, and how do you choose the right one for your organisation?

What Are Large Language Models?

LLMs are AI models trained on vast amounts of text data, enabling them to predict the next word or sentence, similar to a more advanced version of auto-complete. Early models, such as GPT-1, were limited in their output, often producing incoherent text. However, modern models like GPT-4 have significantly advanced, capable of generating thousands of meaningful words with context, coherence, and insight.

LLMs break down text into smaller units called tokens, which are then processed using mathematical models. These tokens form the foundation for neural networks, which are composed of layers that work together to predict text. The more layers and nodes a model has, the more complex and sophisticated its output becomes.

Key Terms You Should Know

Before diving into use cases and selecting an LLM, let’s clarify some essential terms:

How LLMs Are Transforming Business

LLMs are revolutionising business operations by improving productivity, automating tasks, and enhancing customer interactions. Here are some key areas where LLMs are making an impact:

1. Customer Interaction and Support

LLMs streamline customer interactions and automate routine tasks:

2. Content Creation and Summarisation

LLMs enable businesses to automate content generation:

3. Translation and Language Processing

LLMs help break down language barriers:

4. Productivity and Automation

LLMs automate repetitive tasks and improve efficiency:

5. Legal and Compliance

LLMs support legal teams in document review and compliance monitoring:

Popular Tools That Leverage Large Language Models

Tools like Microsoft CoPilot and ChatGPT are powered by LLMs. Microsoft CoPilot integrates LLMs into Word and Excel, automating tasks like document drafting and data analysis. ChatGPT provides conversational AI, responding to queries in real time.

How to Select the Right Large Language Model for Your Business

Selecting the right LLM can be challenging. Consider the following factors:

A Comparison of 20 Popular Large Language Models

LLM Name Context Window Full Multimodal Support Latency Developer Volume (Tokens per second)
GPT-4 128K tokens Yes Low OpenAI 37.5
Claude 3 200K tokens No Medium Anthropic 57.3
Gemini 1.5 Pro 1M tokens Yes Low Google 89.5
Gemini 1.5 Flash 1M tokens Yes Low Google 207.9
Mistral 7B 33K tokens No Medium Mistral 106.8
LLaMA 2 Chat (70B) 4K tokens No Medium Meta 52.1
LLaMA 2 Chat (13B) 4K tokens No Medium Meta 48.3
Falcon 40B 4K tokens No Medium TII 0
Cohere Command-R+ 128K tokens No Medium Cohere 47
Jurassic-2 10K tokens No Medium AI21 Labs 87.1
GPT-NeoX 20K tokens No Medium EleutherAI 20
PaLM 2 32K tokens Yes Low Google 80
Bard 32K tokens Yes Low Google 80
Claude 3 Opus 200K tokens No High Anthropic 25.4
Mistral Medium 33K tokens No Low Mistral 18.2
Mixtral 8x22B 65K tokens No Low Mistral 69.8
Command-R 128K tokens No Low Cohere 47
Phi-3 Medium 14B 128K tokens No Low Microsoft 50.6
DBRX 33K tokens No Medium Databricks 86.5
Mixtral Large 33K tokens No Medium Mistral 36

Source - LLM Leaderboard - Compare GPT-4o, Llama 3, Mistral, Gemini & other models | Artificial Analysis

For businesses looking for high performance, GPT-4 and Gemini 1.5 Pro are robust solutions. If you're on a tighter budget, Mistral 7B and LLaMA 2 Chat are cost-effective options with solid performance.

Open-Source vs. Proprietary Large Language Models

LLMs generally fall into two categories: Proprietary models and open-source models. Proprietary models like GPT-4 are developed by private companies and offer extensive support through APIs or chat interfaces. In contrast, open-source models like LLaMA 2 are freely available, allowing businesses to build directly into their environments and customise to their needs.

Custom Build vs. Pre-Trained Models

When choosing between a custom-built LLM and a pre-trained one, consider the complexity and specificity of your project. Pre-trained models are ideal for generic tasks and fast deployment, while custom-built models are better for complex, domain-specific requirements.

Conclusion: Selecting the Best LLM for Your Business

The right LLM can significantly enhance your business processes, automate tasks, and improve productivity. When selecting an LLM, consider factors such as your budget, project scope, and specific use case. Whether you opt for a proprietary model or an open-source solution, staying informed about the latest developments in LLM technology will help you make the best choice for your business.

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