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šŸ“˜ How to level up your AI approach

A Fortune 500 Chief Scientist reveals the three levels of AI adoption.

Hi, and happy Tuesday.

Ever feel like youā€™re still waiting for AI to deliver on all its hype? Youā€™re not alone. Traditional corporate structures and ā€œcomfort-zone thinkingā€ can hinder true innovation.

šŸ’” By the end of this post, youā€™ll discover a simple framework for assessing and upgrading your AI strategyā€”no matter your company size or industryā€”and exactly why questioning your assumptions can be the difference between incremental gains and explosive breakthroughs.

PreScouter Executive Roundtables

Join our complimentary membership program offering exclusive, live roundtables focused directly on each newsletter topic. Upcoming topics and Roundtable dates include:

  • How to Build AI-Driven Data Intelligence That Works - Tue 29th April

  • AI + How to Triangulate Suppliers Amid Tariffs - Tue 6th May 

  • How to Get to the 95% of Knowledge AI Misses (via Experts) - Tue 13th May

  • How to Address AIā€™s Biggest Blind Spot: Local Context - Thu 22nd May

(All sessions are held at 10am PT / 1pm ET / 7pm CET)

IN THE SPOTLIGHT

A world map is hanging on the wallā€”but itā€™s flipped upside down, with Africa and South America at the top. This unexpected perspective reveals how we can get locked into habits that seem ā€œnormal,ā€ yet limit what we believe is possible.

In a recent conversation with Dr. Pete Dulcamara, former Chief Scientist at Kimberly Clark, we explored how this shift in perspective applies directly to AI in business. He spent years leading global R&D at Dow and guiding massive projects at Kimberly-Clarkā€”and heā€™s now helping organizations and educational institutions worldwide harness AI as a transformative, not just incremental, force.

ā€œA fish discovers water last. We need to be pulled out of our comfort zone to see the invisible assumptions running our business.ā€

- Dr. Pete Dulcamara

Reimagining the Path to AI

We talk about AI like itā€™s a fancy add-on, but remember how electricity revolutionized every corner of industry? AI is following the same path. Instead of merely automating what humans do, AI can spark entirely new business modelsā€”from drug design ā€œin silicoā€ to self-driving cars.

However, itā€™s not as simple as downloading a tool or hiring a data scientist. Many manufacturing or consumer-goods companies run on decades-old machinery and siloed structures that block data flow. ā€œSurely we canā€™t turn everything upside down,ā€ you might think. Then again, maybe thatā€™s exactly what we need.

Pete says:

ā€œData is the new oil, AI is the new electricity, and robotics is the new steel ā€¦ Fifty years from now, thereā€™ll be very few businesses that arenā€™t using data, AI, and robotics.ā€

This raises the tension: Are you stuck just ā€œoptimizingā€ an outdated system, or ready to uncoverā€”and monetizeā€”entirely new forms of customer value?

The Three Levels of AI Adoption

Pete shared a framework for thinking about AI adoption:

Level 1 ā€“ AIā€Optimized

  • You have a traditional business model, but youā€™re injecting AI for efficiency or improved processes.

  • Value: Cuts cost, improves speed/quality.

  • Pitfall to Avoid: Getting stuck optimizing only, missing the chance to create new revenue streams.

ā€œWe see fraud detection or predictive maintenance as prime examples. Itā€™s cost-saving, but the bigger ideas come next.ā€

Level 2 ā€“ AIā€Enabled

  • Youā€™re starting to change your offerings or operational flows around AI. 

  • Value: Creates new capabilities, differentiates you from competition.

  • Checklist:

    1. Pinpoint the areas where AI can bolster features or open new channels.

    2. Ensure you have the right data pipelines.

    3. Train your people to interpret, not just implement, AI outputs.

ā€œTesla exemplifies thisā€”autopilot isnā€™t just a minor add-on; it changes the value proposition of a car.ā€

Level 3 ā€“ AIā€First

  • Your entire business model or major product lines are born in AI. 

  • Value: Can yield exponential growth or entire new markets.

  • Organizational Impact: Usually requires reorganizing teams, forging new partnerships, or adopting new business metrics.

ā€œThink of Modernaā€™s COVID-19 vaccine development. They created it virtually before any physical prototype.ā€

Why does this matter? Because you may realize youā€™ve been playing it safeā€”sticking to small optimizations when you could reimagine your entire offering.

As Pete explains:

ā€œThe ultimate product is one that doesnā€™t exist, but its function does. You start in bits before moving to atoms,ā€ Pete explains. ā€œAI lets us shift from product-centric to data-centric in a way that opens new revenue streams.ā€

Tactics for Progress and Growth

Put this into practise with this stepā€byā€step approach:

  1. Ask: ā€œWhich tier are we honestly in?ā€

  2. Identify 1ā€“2 leaps you can make (e.g., from AIā€optimized to AIā€enabled in one product line).

  3. Form a Pilot around that leap (small, but with potential for big impact).

  4. Scale Up once you collect wins and leadership sees traction.

  5. Reassess your portfolioā€”some units might remain at ā€œoptimize,ā€ others can catapult to ā€œAIā€first.ā€

These are some common challenges you may face

  • Data Silos: The biggest stumbling block for going from optimization to new AI products.

  • Talent Gaps: Culture shock in R&D or frontā€office teams who fear AI will replace them.

  • ROI Pressure: Large investments, uncertain payoff. Overcome via smaller pilots that show measurable gains.

Ready to level up your AI?

This prompt will help give you apply this concept to your own work and organization.

Consider these three AI Levels: (1) AIā€Optimized: You have a traditional business model, but youā€™re injecting AI for efficiency or improved processes. (2) AIā€Enabled: Youā€™re starting to change your offerings or operational flows around AI. (3) AIā€First: Your entire business model or major product lines are born in AI. For <product, business process or department> at <company>, please brainstorm some opportunities at each of these AI Levels.

Hereā€™s highlights of what I got when I provided packaging at a consumer packaged goods company. I love it when I get compliments from the AI. Maybe you will too?

Great prompt! Hereā€™s a breakdown of opportunities at each AI Level:

AI-Optimized

  • Demand Forecasting: Use AI to predict how much packaging material will be needed, reducing waste and stockouts.

  • Quality Inspection via Computer Vision: Automate defect detection (e.g., print errors, seal integrity) on packaging lines using AI-powered cameras.

  • Optimized Packaging Design for Cost and Sustainability: Use generative AI to explore lower-cost or more eco-friendly designs based on constraints like durability or shelf-life.

AI-Enabled

  • Dynamic Label Customization: Enable packaging lines to print labels with localized promotions or personalized content using AI-driven segmentation.

  • Smart Packaging Selection Engine: AI tool that selects the optimal packaging type based on customer location, weather, product sensitivity, etc.

  • Consumer Sentiment-Driven Design Updates: Use NLP on reviews and social media to influence packaging refresh cycles or messaging.

AI-First

  • Interactive Smart Packaging: QR/NFC-enabled packages that use AI to deliver hyper-personalized experiences, instructions, or loyalty offers based on who scans it.

  • Autonomous Design Co-Creation: Launch a consumer-facing AI that co-designs packaging (colors, fonts, textures) with users in real-time, turning them into co-creators.

  • Circular Packaging Intelligence: A closed-loop system where packaging embedded with smart tags reports usage, damage, or location to optimize reuse/recycling.

Because technologyā€”and the competitive environmentā€”evolve faster every day, the biggest risk is to keep doing what youā€™ve always done.

If you feel inspired, share this newsletter with a colleague to start a conversation with them on this topic.

Best,

Dino

From Our Interview Series with Pete Dulcamara

šŸŽÆ What youā€™ll learn:

  • How challenging core assumptions can spark fresh innovation

  • Why emerging economies might lead the next wave of AI breakthroughs

  • The ā€œGreat Bifurcationā€ between digital haves and have-notsā€”and how to avoid it

  • Why EQ becomes critical when AI surpasses human intelligence

šŸŽÆ What youā€™ll learn:

  • The surprising idea behind ā€œThe Ultimate Productā€

  • How to transition from physical goods to data-driven solutions

  • The three tiers of AI adoptionā€”and which might work best for you

  • Real-world success stories from leaders that disrupted entire industries

šŸŽÆ What youā€™ll learn:

  • How to unlock new business models through AI-first thinking

  • Why embedding intelligence into products and services is non-negotiable

  • The difference between AI-optimized vs. AI-fueled operations

  • Practical steps for building the data infrastructure you need

My Interview Notes

I came up with 7 proven frameworks straight from my chat with Pete Dulcamara for creating your AI strategy:

  1. Flip the Map: Challenge every assumption. Donā€™t let old perspectives hold you back.

  2. 3 Levels of AI Adoption: Start with AI-Optimized, evolve to AI-Enabled, and aim for AI-First.

  3. 4 Ways to Innovate: Product, Brand, Channel, or Business Model. Whereā€™s your biggest opportunity?

  4. Good, Fast, Cheap, Easy, & Sustainable: Solve problems that matter to your customersā€”and the planet.

  5. Data-First Mindset: Design from bits to atoms, not atoms to bits.

  6. Problem ā†’ Data ā†’ Partner ā†’ Pilot: A simple roadmap to bring AI to life.

  7. Build AI-Ready Teams: Digital IQ + AI Tools + Data Architecture.

60 SECOND HIGHLIGHTS (SHORTS)