Institutional intelligence is the key to getting more from AI
AI models are getting more powerful — and the differences between them are getting smaller.
TL;DR
- AI models are advancing, but the differentiation between them is diminishing.
- The value derived from AI heavily depends on the organization's 'institutional intelligence' – a record of how it operates.
- Despite increased AI adoption, enterprise financial impact (EBIT) linked to AI has plateaued.
- Only a small percentage of companies (6%) are considered AI high performers, achieving significant EBIT from AI.
- Organizational context, including unwritten operational details, is crucial for AI productivity.
- Lack of institutional intelligence leads to 'execution drift', the gap between intended and actual work processes.
- Institutional intelligence, when codified, allows AI agents to access and utilize organizational knowledge immediately.
- The next leap in AI returns will come from better access to this institutional intelligence, making it software-understandable.
- Work management platforms can establish the foundation for institutional intelligence by centralizing people, processes, workflows, and data.
- Smartsheet aims to align work, people, and AI, unify workflows and data, allow for quick adaptation, scale securely, and build on existing knowledge.