CXO Reflections on AI in the Enterprise

We’re nearly two years into the AI era, and while there’s still excitement within enterprises to apply AI to workflows, the hype has cooled down. Despite an explosion of AI startups, software budgets are not getting much bigger. In order to justify allocating budget to AI solutions, CXOs are eager to see true ROI and productivity gains. That means founder success is less about offering the latest shiny object and more about demonstrating real value. 

After attending four different financial services technology summits and chatting with dozens of CXOs over the past few weeks, Greylock CXO partner Lee Haney identified several takeaways that technology leaders implementing AI in the enterprise need to consider: 

The “Build vs. Buy” Debate is Dead — Especially for AI. No one can own the full stack when it comes to AI — neither in-house nor via third-party vendors. No enterprise is going to build its own foundation models, and if crown-jewel enterprise data can’t leave a company’s four walls, the answer must be a mix of applying internal talent to building AI solutions and leveraging the best of external innovations in model development, deployment, and operation. Speed in AI deployment is coming from curating a flexible tech ecosystem that evolves with the business, rather than clinging to the idea of complete ownership or complete outsourcing.

AI Makes Great Demos Look Easy — But Production Use Cases are HARD. Sure, AI demos can be impressive, but enterprises want to see consistent, production-quality AI use cases. Especially in regulated industries, scaling AI requires solid foundations — data architecture, governance, and privacy – with the fastest enterprises having already started tackling challenges back before AI was a household term. If AI pilots aren’t showing clear ROI quickly, enterprises will quickly shut them down and focus energy on what’s working.

Enterprises Shouldn’t Ask “What’s Our AI Strategy?” — It’s All About Customer Strategy. There is too much FOMO when it comes to AI. Board level initiatives, interest, and often even fears are leading to too many projects that demand AI for AI’s sake. Using AI isn’t the end goal for enterprises — it’s a tool to enhance customer strategy. Durable competitive advantage comes from true human connection – often physical products or tangible experiences – that an enterprise can offer, and considering how to provide that human touch first is the right way to identify when and how AI can support creating that kind of customer experience. 

For more insights from Lee, check out his thoughts on Value-Based Sales, and Proof of Value.

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