Why should COOs care about AI?

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Chief Operating Officers (COOs) are well-placed to lead AI adoption within the organisation. Aside from driving the required technological change, COOs can leverage AI for business decision-making, long-term planning and building business resilience. For COOs, AI offers more than mere automation and provides new ways to address challenges and spot opportunities with unprecedented accuracy.

Within Australia, the businesses that successfully leverage AI have a strong opportunity to cut ahead of their competitors. A report by Boston Consulting Group highlighted Australia’s slow pace in adopting AI, with just 30% of companies effectively implementing key factors for AI success. As such, COOs driving AI initiatives in the business have an opportunity to create a competitive advantage by improving efficiency, cost-optimisation and personalisation. 

Using predictive analytics

Predictive analytics help COOs anticipate future trends and adjust their strategy accordingly. AI uses historical data and current market conditions to provide COOs with insights into potential operational impacts, enabling strategic and informed planning.

Disruptive events brought on by the COVID-19 pandemic made it critical to predict and prepare for changes in the market. Notably, the Retail trade sector experienced significant supply chain disruptions, with 68% of businesses affected in June 2022. While no one could predict the disruptions caused by the pandemic, predictive analytics can help COOs understand potential market shifts and adjust their operational strategies. Such foresight is essential for minimising risks and capitalising on new opportunities.

Source: ABS.

Driving operational efficiency

COOs can spearhead AI adoption within the business to increase operational efficiency. AI drives productivity enhancements, agile operations and improved supply chain management. Your organisation needs this agility to keep pace with market changes and customer demands. AI’s role in automating routine tasks and providing predictive analytics further supports COOs in making informed decisions that drive operational excellence and sustainable growth.

AI for business

Intelligently optimising costs

AI is no small investment but can generate cost optimisations and increased revenue when implemented properly. Through advanced data analysis, AI identifies immediate and long-term strategies for optimising costs. These insights on identifying cost-cutting measures allow COOs to allocate resources effectively and identify ROI opportunities. 

Automating tasks through AI contributes to cost optimisation. Automation reduces human error, which generates costs associated with rework and quality control. Improving supply chain management is another way in which AI supports cost optimisation. COOs can use AI to reduce excess inventory and improve customer deliveries. 

Enhancing customer service

Customers have come to expect personalisation in their interactions with companies, from Retail to Utilities. With AI, businesses can analyse customer data in real-time to offer personalised experiences, recommendations, and solutions that meet each customer’s unique needs and preferences. 

The COO is well-placed to drive these initiatives by working with the marketing and customer service teams to understand how AI tools like chatbots support personalisation. AI-driven initiatives elevate the customer experience and set a new standard in customer service, positioning companies to lead in their respective markets through innovation and exceptional service.

Making the most of data

Before COOs can leverage the full potential of AI, they must get the organisation’s data strategy right. Fragmented data systems make it difficult to achieve an integrated and unified view of data required for AI to deliver insights and predictive analytics.

Integrated data becomes a powerful, unified resource that enhances analytical capabilities and informs strategic decisions. Once the organisation has a data integration strategy, COOs can use AI to unlock deeper insights, drive innovation, and sustain a competitive edge in their respective markets.


COOs are in an ideal position to drive AI initiatives within the business and improve operations. AI provides the tools to optimise costs, predict disruptions and market trends, and personalise customer experiences. Deploying AI for task automation and predictive analysis enables smarter, data-driven decisions that underpin operational excellence and sustainable growth.

Strategically adopting AI transcends mere automation and encompasses a broader vision to transform business operations. With AI, COOs can respond to immediate operational challenges and forecast future trends and opportunities. In doing so, they lay the groundwork for innovation and long-term competitiveness, ensuring the organisation remains agile and future-focused as the business landscape changes.

MakeSense can help improve your AI and data strategy

MakeSense can transform your company’s approach to AI and data analytics. Our SenseMakers provide customised support to tackle your business challenges, leveraging cutting-edge technology to help your business cultivate a competitive advantage. From unlocking predictive insights to refining decision-making, our experts prioritise operational efficiency and strategic achievement.

For a comprehensive overview of how we can elevate your organisation, visit our AI & Data Services page.

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