During a recent seminar I conducted with Bora Pharmaceutical, the conversation unfolded highlights a challenge many SMEs face in today’s AI-driven world. As the VP of IT at Bora pointed out, “As an SME, we don’t have resources to waste. We need to time our AI 2.0 adaptation carefully and select the right tools instead of trial and error.” This sentiment echoes the key theme from my article back in August, "AI 2.0 Adaptation: Should We Wait Until the Dust Settles?" In that article, I drew a parallel between today's AI revolution and the search engine wars of the late 1990s and early 2000s, emphasizing that companies should begin AI 2.0 cultural adaptation now, while being strategic in selecting the right tools at the right time.
This discussion also reflects the reality that SMEs don’t have the same capacity for trial and error as larger enterprises. They need to make strategic, precise decisions. However, this cautious approach presents its own challenges—particularly when business departments start pushing ahead of IT.
When Business Moves Faster Than IT
One of Bora’s IT managers raised a critical question during the seminar: “We haven’t officially adopted any AI 2.0 tools, but the business side is already asking about them.” This is a scenario many IT departments are now facing. Tools like ChatGPT, Google Gemini, and other generative AI platforms are readily available, and employees are already using them independently on a regular basis.
This situation made me reflect on one of the key points I discussed during the seminar: the role of IT management in cultural adaptation before technology adoption. It’s a topic I often emphasize in my talks, where I listed the tasks IT management must handle during the AI transition. Initially, these weren’t ordered, but they include:
Understanding Cultural Adaptation
Selecting the Right Framework for the Organization
Identifying & Addressing Business/Work Function Changes
Communicating & Alleviating Job Concerns
Facilitating Change Management
Facilitating Training Programs
Acting as a Bridge Between Strategy and Operations
Monitoring & Measuring Changes in the Market
Developing New Data Protection & Security Policies
However, after hearing the IT manager’s concerns, I realized that data protection and security policies could/should be the first priority in AI adoption, especially for SMEs. This brought to mind the data breach incident reported by Economist Korea in March 2023. The article detailed how ChatGPT led to three data leakages at semiconductor facilities—accidents that could have been avoided with proper regulations and policies in place. In today’s fast-paced AI landscape, where tools and features are regularly updated and easily accessible, SMEs are particularly vulnerable to such risks if they don't act swiftly.
Timing AI Adoption with Governance at the Forefront
For SMEs like Bora Pharmaceutical, carefully timing AI 2.0 adoption is essential. While they are planning the broader adaptation, it might help to allow business departments to “test the waters” by using publicly available AI tools. However, it is critical that clear, well-thought-out policies and governance are in place to protect the organization. These policies must also be regularly refined to keep up with the rapid changes in the market and evolving government regulations.
Before the full-scale AI adoption begins, this foundational step will safeguard the company from potential security breaches and ensure responsible, compliant practices as it prepares for larger cultural and technological shifts.
Be Part of the Advancement, Together
Bora’s IT team is wise to time their AI 2.0 adaptation carefully. But perhaps timing alone isn’t enough. As business departments push ahead, IT needs to act now—not only by setting up the necessary guidelines and policies but also by working closely with the business as it explores and experiments with AI tools as part of the culture adaptation. Rather than just guiding tool selection, IT should observe which tools the business side is already using or wants to use. This two-way learning process allows IT to offer informed suggestions while also gaining valuable insights into the real needs and priorities of the business.
This collaborative approach isn’t just about tool selection; it also helps IT understand real-time business requirements, which in turn supports many aspects of AI 2.0 adaptation, from cultural shifts to technical frameworks as well as impacting all nine tasks I mentioned above. By engaging in this iterative process, IT can ensure that the tools and strategies align with both technological capabilities and the evolving business landscape.
Final Thoughts
The conversation at Bora Pharmaceutical served as a timely reminder for all SMEs: while it’s essential to carefully time AI adoption, the first step must be protecting your data and setting clear policies to govern AI use. The real question isn’t just when to adopt AI, but how to protect your business from the risks that come with early experimentation by your business units.
Have you started drafting your preliminary AI governance policies? If not, now might be the perfect time to begin. I’d love to hear your thoughts!
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