As someone passionate about using cutting-edge EPM tools to drive business success, I’ve seen how generative AI has become a game-changer in boosting productivity while optimizing profitability and cost management. Its influence spans two crucial areas: knowledge productivity and process productivity, redefining how organizations operate and compete:
Knowledge Productivity
Generative AI isn’t just about automation—it’s about elevating the quality and creativity of outputs in ways that directly impact profitability initiatives.
- Improving Quality:
- The precision and depth generative AI brings are remarkable. For example:
- Financial forecasts can see a 23% improvement in accuracy, enabling better cost and profitability decisions.
- Communication clarity improves by 18%, fostering more substantial team alignment and collaboration.
- Enhancing Creativity:
- AI drives innovation in problem-solving, especially in areas like customer engagement. For instance, strategies for customer interaction have seen creativity improvements of up to 130%, resulting in more effective solutions and new revenue opportunities.
Process Productivity
Beyond knowledge work, generative AI revolutionizes operational processes, saving time and boosting efficiency.
- Saving Time:
- Generative AI trims hours from routine tasks, enabling teams to focus on what matters most:
- Retrieving information from emails and knowledge systems is 30% faster.
- Writing business plans now takes 37% less time, accelerating execution.
- Customer support tasks see a 14% time reduction, improving service while cutting costs.
- Driving Efficiency:
- Whether streamlining workflows in design or enhancing customer service operations, generative AI unlocks greater productivity, helping businesses achieve better cost-to-profit ratios.
The Bigger Picture
Generative AI’s impact is far-reaching. By reclaiming 12% of working hours and enhancing output quality by 8.5%, it helps organizations:
- Reduce costs through more innovative processes.
- Make sharper decisions with precise data insights.
- Free up resources to fuel innovation and growth.
This isn’t just about technology—it’s about transforming how we create value. By integrating generative AI into profitability and cost management efforts, businesses position themselves to not only survive but thrive in an increasingly competitive landscape.
Final Thoughts
Generative AI is more than a tool—it’s a strategic advantage. Focusing on knowledge and process productivity empowers organizations to innovate, reduce costs, and unlock new growth opportunities. Incorporating it into your profitability and cost management initiatives isn’t just the future; it’s the key to staying ahead today.
Bibliography
- Accenture Research (2023): The AI Advantage in Business: Driving Productivity and Profitability with Generative AI.
- McKinsey & Company (2023): Generative AI’s Potential: Transforming Business Operations and Strategy.
- PwC Insights (2024): AI in Finance: Boosting Productivity and Optimizing Cost Management.
- Harvard Business Review (2023): How Generative AI Impacts Knowledge Work and Business Efficiency.
- Oracle EPM Solutions (2024): Integrating AI to Improve Profitability and Strategic Cost Management.
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Pedro San Martin CPA, MBA
PCM Subject Matter Expert, Principal
PwC Interaméricas / Asher
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