How generative AI and intelligent automation are reshaping OPEX

Businesses are increasingly turning to generative AI and intelligent automation (IA) to build resilience, improve efficiency and adapt to shifting landscapes. In recent years, breakthroughs in artificial intelligence (AI), cloud computing, the Internet of Things (IoT) and data analytics have revolutionized business processes and consumer interactions. However, while these innovations have driven immense opportunities, they have also brought complex challenges requiring thoughtful navigation.

For further insights as to what this year will hold, click here to view the 2025 EdgeVerve report. 

Navigating economic uncertainty with operational excellence (OPEX)

Despite predictions of a global recession in 2023, the anticipated downturn did not materialize. However, organizations remain cautious as the International Monetary Fund (IMF) forecasts slower economic growth, from 3.5 percent in 2022 to 3 percent in 2023 and further to 2.9 percent in 2024. Against the backdrop of geopolitical conflicts, volatile markets and weaponized AI, companies are prioritizing cost optimization, agility and automation to weather uncertainty.

OPEX has become essential in these efforts, with organizations embracing traditional methodologies like Lean Six Sigma and business process management (BPM). Ramana Rao, director of GBS IA at Newell Brands, highlights the importance of mastering processes before automating them. “I strongly believe in classic methodologies such as Kaizen and Six Sigma because, before you automate a process, you have to understand it,” Rao explains.

These frameworks are empowering businesses to identify inefficiencies, standardize operations and prepare for automation while fostering a culture of continuous improvement. The demand for process excellence talent is also growing, as organizations recognize the critical role of skilled professionals in driving meaningful transformation.

The transformative potential of generative AI

Generative AI, which can analyze vast datasets and produce human-like insights and content, is heralded as a revolutionary force on par with the internet and smartphones. This technology holds the potential to automate up to 25 percent of workplace tasks, according to a McKinsey report and could impact up to 70 percent of current job activities when combined with workflow automation.

Despite this promise, operationalizing generative AI remains a challenge for many businesses. For example, while 67 percent of IT leaders acknowledge AI's pivotal role in digital transformation, only 19 percent have successfully scaled projects, such as customer service chatbots, intelligent document processing (IDP) and regulated document production.

Addressing ethical and safety concerns

The reluctance to invest in large-scale AI initiatives stems from concerns over ethics, governance and potential societal harm. A March 2023 Salesforce survey revealed that while 57 percent of senior IT leaders view generative AI as a game-changer, a significant majority expressed concerns about bias, misinformation and privacy threats.

Lyudmila Todorovska, global head of digital and technology at Heineken, emphasizes the need for robust governance frameworks:

“In order to capitalize on generative AI, you have to make sure these tools are unbiased, ethical, trustworthy and explainable.”

The solution lies in fostering AI literacy among employees and tailoring AI models to align with enterprise-specific needs. Organizations like EdgeVerve advocate for integrating AI into existing data systems, enhancing efficiency and minimizing risks.

The platform-based approach to IA

One of the most significant barriers to AI adoption is the prevalence of legacy systems, which hinder modernization efforts. IT leaders increasingly advocate for a platform-based approach to address this challenge. Instead of undertaking costly and time-intensive overhauls, companies can adopt AI-powered platforms that overlay existing systems, facilitating seamless integration and driving transformation.

EdgeVerve’s vice-president, N. Shashidhar, highlights the dual benefits of this strategy: “It will enable you to start your AI and process-level automation journey immediately and help you extract more value from your past investments in your digital core.” This approach also fosters collaboration across people, processes and technology, creating a connected ecosystem that drives growth and innovation.

Human potential in the AI era

The convergence of AI and automation is not just about efficiency — it’s about amplifying human potential. By automating repetitive tasks and equipping employees with actionable insights, AI allows teams to focus on creative, strategic and customer-centric activities.

According to Shashidhar, the future of AI lies in its ability to adapt to human behavior. “Traditionally, human behavior used to adapt to new technology. Here is one technology which is adapting to humans and the interface is becoming more conversational,” he explains. This evolution redefines the relationship between humans and machines, transforming AI from a tool into a collaborative partner.

What does the future look like?

As businesses navigate the complexities of 2025 and beyond, the integration of generative AI and IA offers a pathway to resilience and innovation. By balancing technological adoption with ethical governance, leveraging platform-based solutions and fostering a culture of operational excellence, organizations can thrive in an unpredictable world.

This report was ungated on the 13th January 2025.