"Just as electricity transformed almost everything 100 years ago, today I actually have a hard time thinking of an industry that I don't think AI will transform in the next several years." - Andrew Ng, Co-founder of Coursera and Adjunct Professor at Stanford University.
The strategic value gap
Many small and mid tier global capability centres are finding it hard to meet the high expectations of their headquarters. After years of operating, they remain stuck acting merely as cost and delivery hubs. This limitation is becoming a critical issue as artificial intelligence begins to fundamentally change how standard business processes function.
Seeking outside help
Companies that originally launched these centres with great excitement are now turning to consulting firms to fix their operations. Some organisations are even considering selling their units entirely after realising they have stagnated. The initial momentum has faded, forcing these businesses to look for ways to reset their strategy after years of not moving forward.
The maturity crisis
Industry experts estimate that only about twenty per cent of these centres will become truly AI mature with real decision making autonomy. While sectors like banking and retail are adopting these changes quickly, areas such as manufacturing and automotive are expected to lag behind. A significant number of centres are likely to remain constrained or stall completely.
Leadership limitations
A major obstacle is the shortage of senior leadership roles based within the country. Most centres report having very few top level decision makers locally. Without local ownership of products or platforms, these units struggle to evolve from being simple order takers into true collaborators that influence global company strategy.
The sponsorship factor
The trajectory of a centre often depends heavily on who oversees it at the corporate level. When a technology officer monitors the unit, the focus usually turns to creating breakthrough innovations. Conversely, if a financial officer is in charge, the priority almost always reverts to reducing costs rather than creating value.
Summary
Smaller global capability centres are struggling to evolve beyond basic delivery roles amidst the AI revolution. With only a small fraction predicted to achieve true maturity, many lack the local leadership and strategic autonomy needed to add real value, leaving them vulnerable to becoming obsolete cost centers.
Food for thought
If local teams are never given the authority to own global business outcomes, can they ever offer more than just cheap labour?
AI concept to learn: AI maturity
This refers to the stage of advancement an organisation has reached in integrating artificial intelligence into its operations. It measures how well a company has moved beyond simple pilots to embedding AI into core workflows where it drives autonomous decisions and tangible business value.
[The Billion Hopes Research Team shares the latest AI updates for learning and awareness. Various sources are used. All copyrights acknowledged. This is not a professional, financial, personal or medical advice. Please consult domain experts before making decisions. Feedback welcome!]
