Mark Hillary Interviews Sergei Levteev on AI and Business Innovation

On the CXfiles podcast, I spoke with IBA Group Chairman and CEO Sergei Levteev alongside analyst Peter Ryan. We covered IBA Group’s extensive service portfolio, the evolving role of AI, and the growing importance of AI governance. Sergei shared his insights on data security challenges and the future of business innovation, and even demonstrated how AI can be used to develop advanced voice-based systems.

Below is a text version of our conversation, but I still recommend listening to the full episode to hear Sergei’s perspectives and his real-world examples of AI in action.

Mark Hillary and Sergei Levteev

—  It’s been a long time since IBA Group was on the podcast, so please remind our listeners about your key business areas.

— Hello Mark, thanks for having me on your podcast. Yes, it’s been a while since we’ve talked. So, IBA Group is an IT service provider. We have a wide service portfolio that ranges from cloud and AI to data analytics and support for mainframes. As a company, we were born more than 30 years ago and first began working with mainframes. Over time, we mastered new technologies and expanded our service portfolio. Today, IBA Group is a diversified company. This approach proved its viability, as clients typically face not only one problem, but a set of problems, and we offer them multiple solutions to their challenges.

How AI Has Evolved from Hype to Essential Tool

— You are very involved in AI deployment to companies in several industries. Has the use of AI changed?

— The use of AI has been really changing. A year ago, we were talking about AI as a hype. Now we can say that the days are gone when AI was a trick or a prestige accessory. Today, AI is a must-have. AI implementation requires a thoughtful, strategic approach. The sporadic introduction of different AI tools revealed a number of problems. Those tools are not necessarily working together. In some cases, they may conflict with each other or won’t integrate when a company wants to upscale their information landscape. That is why a strategic approach to AI is crucial. Companies must move beyond simply deploying AI to building a strategic framework that integrates AI into core business functions. This will ensure their long-term growth and resilience.

The Growing Importance of AI Governance

— Are more companies creating AI governance to place a framework around how it is used?

— This year, we saw a big increase of awareness around the need for ethical AI and the need for governance around AI. It is true that AI brings about potential risks and organizations need to manage these risks. In response, the EU adopted their AI Act and the ISO released their 42001 standard for an AI Management System. Thus, companies can implement quality controls to ensure ethical deployment and transparency.

Data Security Challenges in a Changing Landscape

— There are always security threats to companies that store customer data, but is the current wave of cryptography creating a situation where it will be impossible to keep data securely?

— I wouldn’t say it will be impossible. There are challenges ahead, that’s true. Rapid technological advancements such as quantum computing and the increasing sophistication of cyberattacks are threatening data security.  Security in cryptography requires constant monitoring, innovation, and adaptation. If we address the risks early and adopt emerging technologies like post-quantum cryptography, it is quite possible to maintain secure systems in the face of evolving threats. However, if we do not adapt, this could lead to huge problems in protecting sensitive data.

Cloud Benefits and Potential Risks

— The CX world sees many new software platforms launched in the cloud. Do you see any disadvantages to all our systems moving into a virtual space?

— Moving systems into the cloud offers numerous benefits, such as scalability, flexibility, security, and cost-efficiency, but it also introduces certain risks. We recommend implementing multi-cloud strategies to avoid vendor lock-in, regularly audit cloud configurations, and use hybrid cloud solutions to combine the flexibility of the cloud with the control of on-premises systems. This way, organizations can minimize their risks.

For example, we at IBA Group have our own cloud platform called ICDC. It is a hybrid cloud solution, where our clients combine both public and on-premises cloud services under the single platform. Also, they handle infrastructure security, while end customers are responsible for securing their applications, configurations, and user data. This helps overcome potential disadvantages. And no doubt, cloud computing remains an indispensable technology for many organizations.

Emerging Technologies Shaping the Future of Business Innovation

– Where do you see the next wave of business innovation taking place? Will it be software, devices, or online worlds?

– As we are a software development company, I would focus on software innovations. The next wave of business innovation is likely to revolve around Generative AI, blockchain, quantum computing, cyber security, and green technologies. Generative AI tools are transforming creative industries, customer service, and product development. Businesses will continue integrating these tools to automate tasks, personalize customer experiences, and enhance decision-making. Blockchain-based solutions will redefine operations, specifically in finance, healthcare, and logistics industries.

Though still in its infancy, quantum computing can revolutionize industries like pharmaceuticals, finance, and energy. Cyber security technologies are also gaining momentum because companies need to protect their data from unauthorized access, corruption, and theft. Businesses will go on developing and implementing tools for carbon tracking, energy efficiency, and supply chain sustainability to meet ESG goals. The shift towards hybrid work will drive innovation in software that bridges the gap between physical and virtual workspaces, with a focus on real-time collaboration, immersive experiences, and productivity tracking. Convergence of these technologies is likely to drive the next wave of business innovation. Businesses that adopt these and other innovations will gain competitive advantages.