Think GenAI is just for tech giants? Think again. It’s also quietly revolutionizing private businesses. In fact, Deloitte’s research shows that two-thirds of private company leaders expect GenAI to transform their industry within the next three years. And one-fifth believe it represents an “extreme threat” to their businesses and operating models.
But here’s the catch: Although private leaders think AI will transform or disrupt their industries, the majority don’t feel organizationally prepared to deploy it (see chart below). As Nihar Dalmia, AI & Data Partner at Deloitte Canada, explains, “That gap reveals how AI is becoming the biggest risk and the biggest opportunity for the private sector.”
Building the foundation for GenAI
How can leaders close that readiness gap—and unlock GenAI’s potential while avoiding its pitfalls? The answer lies in laying the right groundwork. Deloitte’s report, “A path for global private companies to approach GenAI,” outlines how to build a strong foundation across four factors. Here’s an overview:
1. Governance
When it comes to major technology investments or programs, including GenAI, organizations should establish a framework that enables efficient decision-making, resource allocation, and prioritization. This framework helps maintain alignment, accountability, and execution discipline. It’s also important that AI investments are driven and overseen by the top of the organization, since trust is so vital to acceptance and adoption.
In addition, consider creating a central governance body, such as a center of excellence, to evaluate and pitch ideas. This team can be tasked with staying on top of regulatory developments in different markets, either with internal resources or in coordination with an outside provider. Finally, be sure that your board has independent voices—especially from tech-savvy leaders—to bring outside perspectives to technology discussions.
2. Strategy
One of the benefits of being private is not having to satisfy Wall Street by rushing to invest in GenAI solutions. Private leaders may have the freedom to experiment without being held to account every quarter. The key is to combine flexibility with purpose. “Don’t hurry just to hurry,” Dalmia says. “Adopt a sense of urgency to build momentum, and not get left behind, but be methodical about it.”
To that end, focus on use cases that can deliver positive returns and drive tangible benefits in the near term, but also align with your organization’s technology maturity. For some, that might mean deploying GenAI for something as simple as checking for mistakes in requests for proposal and invoices. For others, it might mean investing in GenAI agents that support line workers to make better, faster decisions. As you undertake these early forays, prioritize solutions that can be scaled across the business if they prove successful.
3. Technology infrastructure
The next wave of GenAI is likely to be agentic, moving beyond information retrieval and toward greater autonomy. These emerging GenAI agents can plan, generate content, solve problems, and take actions on their own to achieve complex goals, like a digital collaborator rather than a simple assistant.
To harness these capabilities, you will likely need to strengthen your foundational IT infrastructure. At the very least, you may need to work with a hyperscaler or enterprise resource planning (ERP) service provider to take advantage of their GenAI tools as a starting point.
Remember: Avoid investing in custom GenAI resources to build a new GenAI capability. There may be ready-made solutions in the market that can enable agentic AI for specific processes, while also helping to ensure compliance with applicable regulations.
4. Talent
A significant number of companies mandate human oversight whenever AI is involved. And for many private enterprises, GenAI investments will likely augment roles rather than replacing them. However, this approach requires a skills strategy that retrains employees to stay ahead of competitors and fully leverage the GenAI revolution. As part of that strategy, strengthen AI fluency by participating in AI workshops and encourage your business unit leaders to do the same.
Handled this way, AI investments can become a ‘force multiplier’ and even create new jobs. The key is to be transparent and candid. If you don’t know how AI is likely to impact your workforce, it’s better to acknowledge that uncertainty than to overpromise.
What does this mean for private business leaders? When it comes to preparing for GenAI, it’s time to get comfortable with uncertainty. As your journey unfolds, staying disciplined across the four areas outlined above can help reduce missteps and other unintended consequences. It can also help your organization maximize returns on its GenAI investments. After all, in a market moving this fast, waiting for perfect clarity could be the most expensive decision you make.
For more details, including real-world examples, read “A path for global private companies to approach GenAI.”
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