American Honda’s Strategic Focus on AI and Data Governance
In 2023, American Honda made significant strides in developing a generative AI strategy that prioritizes immediate risks while also bringing capabilities in-house, enhancing training, and planning for the long term. As the organization pushes forward with its broader goals, there is a growing emphasis on responsible AI and the data foundation that supports this technology.
Enhancing Decision-Making through Data Governance
Bob Brizendine, the Senior Vice President of IT at American Honda, articulated the company’s objective: “We’re trying to improve our decision-making speed and our decision-making quality at every level of the organization.” He drew a parallel between the safety mechanisms in cars and the governance of data and AI, stating, “The reason we put brakes on a car is so we can go safer, faster, and data governance and AI governance are really in that same domain.”
As enterprises invest in generative AI, the necessity for adequate governance becomes critical to achieving their AI ambitions. Inadequate frameworks can result in various challenges, including increased costs, subpar performance, project delays, and biased outcomes. Strengthening governance is not a one-time task, but an ongoing process that requires constant attention.
The Myth of AI-Ready Data
Brizendine described the concept of AI-ready data as a “mythical” goal, noting, “I really do use the word mythical because I don’t know how to measure exactly when data is ready for AI, or for what decision.” The readiness of data is context-dependent, hinging on the specific use case, the risk involved, and the importance of the decision being made.
To address these challenges, American Honda has established a responsible AI council aimed at overseeing data and AI governance. This council includes representatives from various business units and monitors issues such as model drift, compliance with privacy obligations, and the appropriate use of AI-generated outputs. It also sets expectations around AI usage and evaluates the effectiveness of its initiatives throughout the year.
Digital Literacy as a Foundation for Success
To support the efforts of the responsible AI council, American Honda has initiated digital literacy training for its employees. The company has partnered with research and consulting firm Gallup to develop a metric that assesses the digital literacy of its teams. Brizendine emphasized the value of this training, stating, “If we know the digital literacy of a team, we can target the education programs for their level, whether it’s the executives who need to learn how to drive innovation using these capabilities or the staff.”
Strengthening the Data Engine
Beyond governance, American Honda has elevated data ownership and aimed to democratize AI and data tools across the organization. A survey indicated that more than 80% of technology decision-makers noted a shift in data ownership as AI initiatives expanded.
American Honda was an early adopter of Microsoft’s Copilot, implementing it broadly in 2023 and exploring AI tools tailored to various business units and tasks. The company is also focused on building a unified data platform that enhances data integration and flow, prioritizing data domains.
As the organization works to incorporate unstructured data—such as owners’ manuals—while improving the quality of structured data, it is identifying opportunities for enhancement. Brizendine highlighted the challenges of ensuring a common language in data quality discussions, which is crucial for effective communication across different plants.
Looking to the Future
American Honda’s Arun Yarlagadda, deputy general manager of global services and data platform and North American chief data officer, noted that rather than discarding valuable use cases, they often find themselves postponing activities to improve data quality. He stressed the importance of having the right talent and monitoring capabilities to ensure long-term success in data and AI governance.
For organizations that successfully establish data and AI governance, technology leaders must remain vigilant and proactive in adapting to the evolving landscape. Brizendine encapsulated this sentiment by stating, “Data and AI are twin engines driving our digital transformation.” He concluded by emphasizing the need for ongoing investment in advanced technology planning to stay prepared for future challenges.
