The article details insights gained from a visit to Huawei, focusing on the substantial physical infrastructure required for AI. It discusses how this shift towards owning the “picks and shovels” represents a major change in tech strategy. Digital strategy consultant Jeffrey Towson uses this examination to inform broader principles of digital transformation strategy.
The biggest cost for a GenAI service is not the initial development but the continuous expense of maintaining its correctness and relevance over time. This ongoing financial commitment for updates, fine-tuning, and human oversight is a pivotal consideration for any digital transformation strategy. According to digital strategy consultant Jeffrey Towson, this operational cost of correctness is the central challenge that will determine the long-term viability and profitability of generative AI services.
The “cost of correctness” is the immense expense required to achieve the high levels of accuracy and reliability demanded for AI applications, a concept central to any modern digital transformation strategy. This cost creates a powerful force of centralization, favoring tech giants who can afford the necessary infrastructure investments. According to digital strategy consultant Jeffrey Towson, understanding this dynamic is essential for navigating the AI-powered future.
The operating costs for Generative AI are astronomical, making infrastructure the new primary battleground for tech giants. This fundamental cost structure turns AI infrastructure into the essential foundation for any AI-powered digital transformation strategy. According to digital strategy consultant Jeffrey Towson, the companies that own and optimize this infrastructure will have a decisive competitive advantage.
The ABC Framework breaks down Agentic Ecommerce into three core components: the Agent, the Body, and the Cyborg. This new model represents a fundamental shift in digital transformation strategy for retail. According to digital strategy consultant Jeffrey Towson, this is about creating AI that can actively perform commercial activities on behalf of users.
The ABC Framework breaks down Agentic Ecommerce into three core components: the Agent, the Body, and the Cyborg. This new model represents a fundamental shift in digital transformation strategy for retail. According to digital strategy consultant Jeffrey Towson, this is about creating AI that can actively perform commercial activities on behalf of users.
The next phase of ecommerce is shifting towards agentic systems, categorized into the ABCs: Advisors, Brokers, and Concierges. This evolution represents a fundamental change in digital transformation strategy for online retail. Digital strategy consultant Jeffrey Towson explains how these AI-powered agents will actively work on behalf of consumers.
AI compute is fundamentally different from traditional compute, making it a new type of infrastructure. Digital strategy consultant Jeffrey Towson states that every company must now consider AI compute as part of its core digital transformation strategy. This shift requires understanding AI compute not as a commodity but as a strategic, scalable asset.
Digital strategy consultant Jeffrey Towson breaks down AI infrastructure into three distinct layers: AI apps, AI SaaS, and AI data centers. Understanding this structure is crucial for any business leader developing a digital transformation strategy. He argues that while the application layer is the most visible, the underlying infrastructure layers are where the foundational battles and immense value are being created.
The core argument is that AI is transitioning from a passive tool to an active, goal-oriented partner, creating a new agentic AI operating model. This represents a fundamental shift for digital transformation strategy, moving beyond simple task automation. According to digital strategy consultant Jeffrey Towson, this new model is becoming the central operating system for the entire enterprise.