We are all seeing the changes caused by the unstoppable rise of AI. However, what’s not so clear is where all this change will lead us. This is true in many areas, including strategic portfolio management (SPM). In this post, I’ll look at where AI-powered SPM is heading and outline how it is poised to completely change the game.
A Deloitte study found that 60% of workers are now equipped with sanctioned AI tools. While this has led to efficiency and productivity gains, few businesses have truly been transformed. However, we are seeing a shift, with AI moving from hype towards demonstrable value. Soon enterprises will switch from AI co-pilots, which assist people, to AI agents, which act autonomously. This will fundamentally reshape the nature of work and the structure of companies, leading to true transformation.
An AI agent is a technology system that can receive a complex goal, reason, devise a plan for accomplishing the goal, and then autonomously execute the steps required.
Think of AI agents as digital employees. Instead of asking an AI model to write a project status report, you would give an AI agent this kind of prompt: “Analyze market demand and launch initiatives for the top three requests.”
The agent would then execute the following tasks:
Validate and score demand in relation to strategic alignment and run a competitive analysis.
Build the business case, staff the initiative based on available resources, and run a risk analysis based on current market circumstances and similar projects completed in the past.
Propagate the top three into the appropriate portfolio.
Create investment summaries.
Email the summaries to the members of the portfolio steering commission and set up a meeting based on their availability.
That sounds promising but let’s be real: AI adoption may be growing but usage remains shallow. Typically, there are many fragmented use cases within various departments and these implementations are often disconnected from corporate strategy.
What are the main barriers that are keeping enterprises from adopting AI in strategic portfolio management? There are multiple reasons why AI is not yet adopted at a deeper level. Here are the most prominent issues:
Lack of trust
Poor data quality
Security concerns
Read a prior post to learn about a survey that reveals why SPM and AI initiatives are stalling in so many enterprises.
To enable adoption of AI at the enterprise level, Broadcom uses the governance by design principle for its ValueOps Vaia platform. Our AI strategy heavily prioritizes data quality, governance, security, and explainable AI.
Our platform provides the foundation for reliable AI and provides you with a path to governed, AI-driven value delivery. On top of this foundation, we have defined a framework called “Liberate to Innovate.” This framework represents a maturity model for using AI for SPM. To learn more, visit our AI-Driven Planning and Execution page.
Stay tuned for my next blog, which will go into more detail on our AI foundation and explain the three levels of the Liberate-to-Innovate framework.
Please contact us to continue the conversation and watch a demo.
While co-pilots assist humans with specific tasks, AI agents are autonomous systems. These agents can receive a complex goal, reason, plan necessary steps, and execute tasks independently.
Despite high interest, many organizations struggle with fragmented use cases, poor data quality, security concerns, and a lack of auditable or explainable results.
The platform employs a "governance by design" principle that prioritizes data quality, security, and explainable AI. Through this approach, the platform can help ensure reliable value delivery.
This is a defined maturity model within the ValueOps platform. The framework is designed to guide organizations through the different levels of using AI for strategic portfolio management (SPM).