A new research briefing released by the MIT Center for Information Systems Research (CISR) establishes three principles supported by data monetization research to guide business leaders when making artificial intelligence (AI) investments. The paper was written by Barbara H. Wixom and Cynthia M. Beath, authors of the award-winning book, Data Is Everybody’s Business: The Fundamentals of Data Monetization.

“In our data monetization research, we have regularly seen leaders use AI effectively to realize extraordinary business goals,” said Wixom, a principal research scientist at MIT CISR. “AI technology’s role is to help data monetization project teams use data in ways that humans cannot, usually because of big complexity or scope or required speed.”

Principle 1: Invest in Practices That Build Capabilities Required for AI

An organization’s progress in AI is dependent on having equally advanced capabilities in data science, data management, data platform, acceptable data use, and customer understanding. The authors stress that while it is important to invest in AI training, it’s equally important to invest in practices that will boost the organization’s ability to manage data (such as adopting a data cataloging tool), make data accessible cost effectively (such as adopting cloud policies), improve data governance (such as establishing an ethical oversight committee), and solidify customer understanding (such as mapping customer journeys). 

Principle 2: Involve the Entire Organization in Your AI Journey

With AI, involving a variety of stakeholders in initiatives helps non-data scientists become knowledgeable about what AI can and cannot do, how long it takes to deliver certain kinds of functionality, and what AI solutions cost. This, in turn, helps organizations learn how to build models people trust.

Principle 3: Focus on Realizing Value from AI Projects

AI is costly and needs to pay off, yet some organizations become distracted with endless experimentation. Leaders with data monetization experience make sure their AI projects realize value in the form of increased revenues or reduced expenses by backing initiatives that are clearly aligned with real world challenges and opportunities. 

MIT CISR’s research shows that leaders who realize value from their data monetization initiatives measure and track their outcomes, especially their financial outcomes, and they hold someone accountable for achieving the desired financial returns.

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Source: MIT CISR