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Putting AI to Work: Innovating for Impact

Australian Financial Review

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Date Published
6 Mar 2025
Priority Score
2
Australian
Yes
Created
10 Mar 2025, 10:27 pm

Authors (1)

Description

Deciding when and how to invest in emerging technology is a critical business decision.

Summary

Seelan Nayagam explores the strategic implementation of AI in businesses, emphasizing the importance of incremental improvements to enhance processes rather than pursuing large-scale overhauls. The article highlights the utility of 'Agentic AI', a concept where multiple AI agents collaborate to address complex problems, thereby achieving operational efficiencies. While the focus is pragmatic, aiming to integrate AI as a tool for business enhancement rather than outright transformation, it acknowledges AI's evolving capabilities and the need for responsible governance. Despite discussing AI applications in Australia, the piece does not delve deeply into existential risks or catastrophic implications, but it is relevant for understanding strategic AI adoption in businesses.

Body

TechnologyDXC TechnologyPrint articleSeelan NayagamMar 6, 2025 – 9.53amSaveLog inorSubscribeto save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber?LoginDeciding when and how to invest in emerging technology is a critical business decision.Rising geopolitical tensions, talent shortages and economic uncertainty compel businesses to embrace emerging technologies for competitiveness and growth.But many business leaders remain hesitant, scarred by past projects that failed to deliver - large data centre investments, poorly executed cloud migrations, and tools that added more complexity than value.Seelan Nayagam, president, DXC Technology, Asia Pacific, Middle East and Africa.This caution has led to decision paralysis. Leaders know inaction carries a steep price, and they’re caught between the fear of investing in the wrong technology and the risk of being left behind.One technology that stands out as the epitome of this dilemma is artificial intelligence (AI). While businesses navigate the balance between risk and innovation in AI projects, adoption continues to grow, with research showing that52 per cent of Australian businesseshave already adopted AI.AdvertisementThe question now isn’t whether to invest in AI – it’showto make it work effectively.One of the biggest traps businesses fall into is all or nothing thinking - either you invest in expensive large-scale overhauls, or you do nothing. As a result, many initiatives stall in pilot phases, struggle to integrate with existing systems or face lack of engagement from employees unsure of how AI fits into their workflows.For AI to be effective, businesses need to adopt the same mindset that has driven success in sports.In 2003, Sir Dave Brailsford, coach of Great Britain’s cycling team, introduced the “marginal gains theory”. He believed that improving every aspect of cycling by 1 per cent – ranging from riders’ sleep to bike ergonomics – would have greater impact than solving one big issue.This same thinking can be applied to AI adoption - start small and balance innovation with practical implementation to build sustained progress. Instead of costly overhauls, leaders should identify where AI can enhance existing business processes. Small, targeted implementations enable gradual employee adoption, smoother integration and continuous learning.While AI’s full potential, and its ultimate impact remain uncertain, this way of thinking can pave the way for long-term transformation.Agentic AI: small gains, big impactJust as marginal gains transformed cycling, Agentic AI is emerging as an alternative to solving business pain points, where the smallest improvements can result in efficiencies and impact.Chat-based systems powered by large-language models are useful for basic tasks. However, these AI tools often struggle with complex queries, inconsistent results, and a lack of real-world decision-making. They only respond to prompts.Agentic AI acts. Instead of processing one request at a time, multiple specialised AI agents collaborate, solve complex problems step by step, and act without human input. These incremental improvements reduce cost, save time, and ultimately drive measurable outcomes.For example, government agencies spend valuable time drafting reports or speeches, diverting resources from critical services. Agentic AI generates accurate, data-driven text with minimal human input, freeing employees for higher-value tasks.Businesses also struggle with outdated systems and a shrinking pool of experts to maintain legacy technology. Agentic AI simplifies analysis, documentation and optimisation, speeding up upgrades and reducing inefficiencies – helping them modernise faster.The future belongs to those who start smallAnother challenge businesses face is preparing for the next wave of emerging technologies, like quantum computing.Unlike traditional computers, it tackles complex problems that today’s systems simply can’t handle. This poses new challenges in security, encryption and data processing.Modernising with Agentic AI helps businesses adapt by driving small, targeted improvements that build over time. These incremental gains create a solid foundation for larger, more transformative changes.As businesses prepare for the future, embracing AI and emerging technologies must be done responsibly and sustainably.Strong governance and ethical standards build trust, ensuring AI aligns with business goals.Equally important is to empower your employees. AI should complement human expertise, making work more meaningful and boosting productivity. Investing in training helps demystify AI and ensures teams feel confident using it. At DXC Technology, this approach is already in action, with over 5500 employees in Australia trained through our AI Academy.Big changes tomorrowA decision on AI strategy must be made soon.Smart business leaders are approaching AI both pragmatically and strategically - combining immediate, tangible outcomes with long-term vision for transformation.Agentic AI is the perfect tool for this approach, offering step-by-step efficiencies that modernise operations and prepare businesses for future technologies.Ultimately, it’s not a question about whether to invest in AI, but whether you’re ready to build a sustainable competitive advantage by harnessing its power effectively.Seelan Nayagam is president, DXC Technology, Asia Pacific, Middle East and Africa.SponsoredbyDXC TechnologyThis content has been funded by an advertiser and written by the Nine commercial editorial team.SaveLog inorSubscribeto save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber?LoginLicense articleFollow the topics, people and companies that matter to you.Find out moreRead MoreDXC TechnologyFetching latest articlesOlympic weightlifting is hard. 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