Technology leaders are under pressure to develop comprehensive AI governance frameworks before widespread adoption. However, Francesco Marzoni, Ikea’s Retail Chief Data and Analytics Officer, has adopted a different approach, prioritizing outcomes over technology.
“I’ve been working with our colleagues and our executive board … to try to have an AI direction, an AI roadmap or an AI journey outlined, without that turning into an actual formally called AI strategy,” Marzoni explained to sister publication CIO Dive. “The idea behind that is to make sure we really anchor all our efforts around AI to our business priorities and organizational roadmap.”
A Human-Centric Approach
Ikea’s AI governance strategy emphasizes a responsible, human-centric approach. This is defined by a focus on accuracy, transparency, and human oversight during AI development. The company uses AI to tackle specific opportunities and challenges, not just for technology’s sake.
An AI governance team, comprised of tech experts, legal professionals, policy specialists, and design-oriented personnel, has established clear guidelines for AI implementation. This team ensures that every application of the technology aligns with the company’s strategic goals and ethical principles.
Ikea primarily focuses AI investments in three key areas:
- Personal productivity
- Optimization
- Customer experience
Around 30,000 Ikea employees have access to an AI copilot. The company is also exploring enhancing such AI assistants to offer more value. In addition, they are exploring AI-powered optimization within the supply chain. For example, they are working to minimize delivery times and optimize loading sequences to reduce costs.
“I’m not just talking about generative AI,” Marzoni noted. “There’s some old, good machine learning models that are still absolutely delivering a lot of value, if not the majority of the value to date.”
Responding to the Generative AI Wave
While not prone to hype, Ikea certainly responded to the interest in generative AI following the release of ChatGPT. Marzoni’s team utilized the enthusiasm to push initiatives related to literacy and governance.
“If we compare ourselves to the rest of the industry when it came to the first wave of digital transformation, e-commerce … we came relatively late compared to other players,” Marzoni said. “When it comes to AI, though, we’ve been deliberate in saying, ‘We don’t want to be the followers.’”
Proactive Compliance with AI Regulations
Ikea’s AI governance framework is the result of an iterative process. The company established its first digital ethics policy in 2019, which prioritized responsible AI. Ikea launched a responsible AI policy and team in 2021 to further define implementation rules. These pre-emptive measures allowed Ikea to move fast with the arrival of generative AI.
The company was an early adopter of OpenAI’s GPT Store and Azure OpenAI Service. They also began AI upskilling efforts last year, to further prepare their workforce. Ikea is also a signatory of the European Union’s AI Pact.
Marzoni stated that Ikea met the three main commitments of the EU AI Act before the enforcement deadline earlier this month. The company’s approach has moved from reactive to proactive, with proof of compliance now required for all submitted use cases before implementation.
“To be brutally honest, it has been super easy and quick to align,” Marzoni said.
Around 180 organizations, including Porsche, Mastercard, and Adecco, have signed the EU’s AI Pact. Companies with a strong focus on responsible AI and governance are perceived to be better positioned to handle compliance, although difficult challenges remain.
Even though some administrations may promote an AI deregulation strategy, companies operating within the EU must still comply with its stringent regulations. “We didn’t have to spend a lot of time trying to convince people why we should be a part of the AI Pact,” Marzoni stated.
