Taking control of the AI hype train

What does innovation really mean? As we worked through the findings of our global research (involving 300 C-Suite executives) we couldn't help but question and explore the true meaning of innovation and why it’s no longer a luxury – but a strategic necessity. The GenAI hype train, the accelerated pace of change since ChatGPT in Q4 2022 and the whirlwind of new technologies ever since have made it easy to lose sight of what innovation truly means. So what actually is innovation and how do organizations ‘innovate like they mean it’?

Innovation: a new way of creating value

Let’s start with a simple definition of Innovation:

Innovation is a new way of doing something that creates more value

In the business world, innovation has traditionally been guided by the three horizon models of growth: 70% of resources are dedicated to immediate, incremental improvements; 20% to medium-term adjacent innovations; and 10% to transformative, long-term projects.

This structured approach has served enterprises well, fostering a balance between short-term gains and long-term growth.

At least, that’s how it used to work.

The pressure to innovate: Navigating the Gen AI hype

That all changed in Q4 2022 with the launch of ChatGPT, forcing organizations to adapt - and at a pace like never before. In fact our research found that 87% of executives reported feeling pressure to implement Gen AI solutions at speed. However, this rush comes with its own set of challenges. Our research also found that 68% of executives are struggling to identify real innovators in today’s noisy AI market, that’s over 2 thirds that can’t distinguish between genuine innovators and more opportunistic – even misleading – propositions in this new market.

This isn’t just a passing trend. It’s a fundamental shift. The rush to embrace Gen AI is leading to an extreme diversion of enterprise resources – resources that could be more effectively deployed elsewhere. Yet, the fear of being left behind is real – over a third (36%) of executives acknowledge the danger of not keeping pace with AI advancements.

Risk of a backlash?

To paraphrase Denis Hassabis of Deep Mind, today’s AI market has “gone a bit crypto,” with the hype sometimes overshadowing the reality. This is a double-edged sword. On one hand, 50% of executives already see AI applications that could seriously disrupt their industries. And on the other hand, 65% foresee a potential AI backlash, driven by unmet expectations and the over-promotion of AI capabilities.

The Gartner Hype Cycle for AI supports this cautious outlook, suggesting that Gen AI may take five to ten years to move from the peak of inflated expectations to the plateau of productivity. As leaders, it’s our responsibility to manage these expectations within our organizations and ensure that our AI strategies are grounded in reality, are purposeful and not just hype.

Innovation: Magic or method?

Yes, innovations are novel, but they must also be useful – they must generate value, they must be purposeful. While 76% of organizations are excited by the potential of Gen AI, 53% express concern about the accuracy and reliability of AI outputs. These concerns are valid – innovation is not just about novelty; it’s about utility and value creation. As Peter Drucker famously observed, most innovations are incremental rather than radical. They are the result of systematic efforts to improve processes and products, not just dramatic breakthroughs.

This is where a solution like RWS’s Evolve comes into play, offering efficiency gains in translating content at scale, through the thoughtful integration of human and machine intelligence. Purposeful innovation, as demonstrated by Evolve, focuses on generating tangible business results, trustable content, without sacrificing quality or reliability.

One of the areas we are working and advising our clients is how to assess their organization’s innovation mindset – before diving headfirst into implementing AI solutions within their business. Questions like, how prepared are you to manage the risks associated with rapid AI adoption? How do you balance the need for speed with the need for security and compliance? What’s the key purpose of the AI implementation, speed, scale, efficiencies or delivering a enhanced or new customer experience? These are the questions that should guide your innovation strategy.

Build or Partner? The collaboration imperative

One of the critical decisions that business, IT, data, content and communications leaders face is whether to build Gen AI solutions in-house or collaborate with trusted partners. Our research shows that while 20% of organizations prefer the in-house route, a significant 60% opt to work with trusted partners. This preference highlights the importance of leaning into the specialist expertise, security, compliance and long-term scalability – factors that are often better managed through collaboration.

Partnering doesn’t just mitigate risk; it can also accelerate the realization of AI’s benefits. As McKinsey rightly points out, “innovators dominate the headlines, but scalers dominate markets.” By collaborating with partners who understand both the technology and the enterprise landscape, organizations can achieve sustainable innovation that enhances customer experience, boosts productivity, and strengthens brand reputation.

Creating a world of Genuine Intelligence™

Late last year, we set out our philosophy on the future of Human and Artificial Intelligence – which we call Genuine Intelligence. It’s a fusion of the two, a collaboration that creates trusted content at the scale and pace needed into today’s world. Gen AI is here to stay. The massive investments and widespread experimentation guarantee that it won’t disappear anytime soon. Organizations today can’t afford to turn their backs on AI.

Our advice…Progress with Purpose

The challenge with any general-purpose technology, including AI, is to identify the use cases that deliver the greatest value with the least risk. Our goal should be to integrate AI in ways that enhance our workflows and processes, creating new customer experiences, making our organizations more engaging, efficient, agile and competitive.

Coming back to where I started this blog – the notion of purposeful innovation. At RWS, we believe in collaborating to innovate. By combining the power of AI with the expertise and passion of our language specialists, we continue to push the boundaries of what’s possible. Our commitment to creating a world of Genuine Intelligence drives us to evolve our approach to AI, ensuring that we innovate not just for the sake of it, but with purpose and responsibility.

Click here to read our 'Innovate like you mean it report.'