Back to Insights

⚠️ CRITICAL REALITY CHECK

The Complete AI Value Creation Stack

AI ≠ Generative AI

By The AK Dispatch • A production-ready framework for business value creation across 10+ companies and sectors

View All Insights

The Industry's Biggest Misconception

Myth: AI = ChatGPT and Large Language Models

Reality: 80% of business value from AI comes from gradient-boosted trees optimising pricing, time series models improving demand forecasting, and computer vision automating quality control.

GenAI is powerful—but it's one tool in a comprehensive value creation stack, not the foundation.

The Value Creation Pyramid

Business Impact - What the Board Cares About

Revenue Growth

Direct revenue impact from AI-driven products and optimisation

EBITDA Improvement

Cost reduction and operational efficiency gains

Cash Flow Optimisation

Working capital and inventory optimisation

Market Share

Competitive advantage through AI capabilities

Insight: Several €100Ms value creation across 10+ companies and sectors

Governance & Measurement

  • Business Metrics: Revenue impact, cost savings, NPS, conversion rates
  • Model Performance: Accuracy, precision, recall, latency, fairness
  • A/B Testing & Experimentation: Rigorous validation of AI interventions
  • Risk & Compliance: Data privacy (GDPR), model bias auditing

ML Capabilities - The Right Tool for the Right Job

  • Classical ML (80% of ROI): Gradient Boosting, Time Series, Recommender Systems
  • Computer Vision: Defect detection, OCR, quality control automation
  • Reinforcement Learning: Pricing optimisation, scheduling, control systems
  • Generative AI (20% of ROI, expanding): Document intelligence, conversational AI

Foundation - Prerequisites for Success

  • Business Value Discovery: Design thinking, journey mapping
  • Process Intelligence: Process mining, value stream mapping
  • Data Platform: High-quality data infrastructure and governance
  • MLOps & Engineering: Deployment pipelines, monitoring, automation

Insight: Foundation work represents 40-50% of total effort but determines 80% of success

Key Messages for Enterprise Leaders

AI ≠ GenAI

80% of business value comes from classical ML, not ChatGPT-style systems

Classical ML is the Workhorse

Gradient boosting, time series forecasting, and recommender systems deliver consistent ROI

PE Mindset = Value First

Every layer must answer: "How does this improve EBITDA?"

Implementation Priority Framework

1

Start with Classical ML

Highest ROI, fastest time to value, most predictable outcomes

2

Add Computer Vision Where Visual Data Exists

High impact in manufacturing, logistics, quality control

3

Layer in GenAI for Expansion

Once foundation is solid, expand to conversational AI and agentic systems

Framework by The AK Dispatch

Based on real transformations delivering several €100Ms value creation across diverse sectors

← Return to All Insights