Generative AI (Gen AI) has seen a surge in interest, promising transformative impacts across industries. Yet, many initiatives struggle to move beyond the proof-of-concept phase. Moreover, with Gartner predicting that nearly 30% of Gen AI projects may be abandoned by 2025, companies need strategies to achieve meaningful business results with this technology. Here’s a roadmap for transforming AI ideas into tangible value:
1. Identify a High-Impact Problem
The key to successful Gen AI integration is finding challenges that genuinely impact customers. For example, Tripadvisor used AI to tackle a core issue in travel planning – helping customers plan trips that are highly personalized and easy to arrange. By reimagining how travelers explore destinations and make bookings, Tripadvisor was able to leverage AI to enhance user satisfaction and engagement, resulting in a one-million-plus milestone for trips planned through AI. This demonstrates how identifying pain points can drive innovation.
2. Build on Solid Technological Foundations
For AI experiments to succeed, companies need a robust data infrastructure. Tripadvisor’s use of Snowflake’s AI Data Cloud for managing data highlights the importance of a centralized platform. With all data in one place, businesses can build more reliable, adaptable AI models. Additionally, Tripadvisor integrates commercial models like GPT series with their proprietary recommendation engines, creating a cohesive system that delivers customized experiences. Companies aiming for successful AI deployment should prioritize seamless data management as a foundation.
3. Turn Use Cases into Revenue Opportunities
AI’s success isn’t just about engagement; rather, it should ultimately drive revenue. For instance, personalized recommendations based on customer preferences exemplify how generative AI creates value. Tripadvisor’s Trip Planning tool, which tailors recommendations for users with specific needs, such as vegetarian dining options, has led to a remarkable threefold increase in engagement. Consequently, higher engagement often translates to increased website activity, thereby offering more opportunities for revenue generation. Therefore, identifying scenarios where generative AI can directly or indirectly enhance profitability is crucial for businesses.
4. Plan for Long-Term AI Innovation
Generative AI isn’t a one-off investment; long-term strategies are essential. Tripadvisor, for instance, is exploring additional AI-driven features like review summarization, allowing users to receive concise insights from lengthy customer reviews. In the future, Tripadvisor plans to use its vast photo database to create customized, visually engaging user experiences. By aligning AI developments with future business goals, companies can ensure ongoing innovation and sustained value.
Conclusion
Generative AI holds immense potential, but companies need to move beyond hype and focus on practical applications. By identifying suitable challenges, establishing solid foundations, turning use cases into revenue, and planning for long-term innovation, businesses can leverage Gen AI to deliver meaningful customer experiences and drive growth.
