Carpe Diem Global Partners spoke with 53 C-suite Leaders across D2C, C2C, and B2C companies ranging in size from $1B to $600B.
Executive Summary
Survey completed from June 2024 to October 2024 by Jeff DeFazio, Managing Partner.
Overall, the narrative underscores a strategic commitment to AI as a transformative tool for both revenue generation and cost reduction, with a particular interest in data utilization and AI infrastructure development.
The integration of generative AI into business strategies is revolutionizing how companies simplify customer experiences and enhance operational efficiency. As organizations increasingly embrace AI, they are discovering innovative ways to streamline services, optimize data usage, and ultimately drive revenue growth.
Simplifying Customer Experiences
Businesses are focusing on reducing complexity for their customers by leveraging AI capabilities. This involves creating a seamless interaction between service and data, ensuring that customers can navigate offerings with ease. For instance, companies are experimenting with AI-driven co-pilots that assist in delivering the right product at the right time and price, thereby minimizing customer effort and maximizing satisfaction.
Enhancing Product Portfolios
The current product landscape is evolving rapidly, with a strong emphasis on AI infrastructure tailored for enterprise clients. Organizations are introducing new AI capabilities aimed at both enhancing product offerings and identifying areas where they may be leaving revenue on the table. By analyzing market trends and consumer behaviors, businesses can adjust their strategies to capture untapped opportunities.
Key Initiatives:
Cost Reduction through Automation: Companies are increasingly utilizing AI to automate customer support functions, thus reducing operational costs while improving service quality.
Revenue Growth Strategies: There is a concerted effort to increase sales efficiency, particularly among small business segments. By using AI to augment sales processes, organizations aim to boost the number of customers each sales representative can effectively manage.
Data-Driven Insights: The focus on improving internal efficiencies through data analytics is paramount. Businesses are employing machine learning (ML) to refine product development processes, enhance user experiences, and ultimately drive top-line growth.
Transforming Product Development
Generative AI is not just a tool but a transformative force in product development. It enables rapid prototyping and automates various design processes, significantly reducing time-to-market for new products. Companies like Unilever and Moderna (outside of our survey set) exemplify this shift by employing AI for everything from concept generation to real-time market analysis.
Practical Applications of AI
User Experience Enhancement: By analyzing user patterns and preferences, businesses can personalize experiences, making interactions more relevant and engaging.
Risk Management: AI systems are being restructured to provide real-time insights into risk factors, allowing companies to make informed decisions swiftly.
Predictive Analytics: Organizations are investing in predictive models that help anticipate market demands and consumer needs, further refining their product strategies
Strategic Partnerships and Future Directions
Collaboration with tech giants like Google and OpenAI is becoming increasingly common as companies seek to leverage advanced AI capabilities. These partnerships enhance product differentiation and improve customer experiences across various touchpoints.
Conclusion
We were surprised to see the breadth of AI application across cost and revenue-generating activities. We expected to hear about the cost side value creation. Using AI to drive revenue at consumer digital companies at scale was an interesting insight, especially within the SMB market where customer count and transaction volume are higher, compared to enterprise.
These market insights from Carpe Diem Global Partners are gathered from the firm’s extensive client work with Board, CEO, CXO, and CHRO leaders in public and private multinational companies. For deeper, custom insights, contact Jeff DeFazio at Jdefazio@carpediempartners.com.