Research and Development (R&D) has two flavors: Basic research – Experimental or theoretical work undertaken primarily to acquire new knowledge of the underlying foundations of AI – Like developing the LLaMA model by Meta. Applied Research – Investigation directed primarily towards a specific practical aim or objective. Examples include developing AI applications for specific industries, such as healthcare or finance, or fine-tuning an existing model to specific needs. Team building and organization: Centralized AI unit – Establish a centralized AI unit or center of excellence to provide guidance, best practices, and support to AI projects across the organization. Interdisciplinary teams – Best practice is assembling cross-functional teams consisting of AI researchers, data scientists, domain experts from the relevant fields, engineers, and product managers to foster collaboration and fast decision making within the team. Skill development and training – Invest in ongoing skill development and training programs to keep the workforce up to date with the latest AI technologies and best practices. Partnership ecosystem – Foster partnerships with academic institutions, research organizations, and technology vendors to access cutting-edge research, talent, and tools. To do AI you need tools: High-performance computing infrastructure to deal with large datasets and computations involving GPU and TPU (google) – This is mostly provided by cloud services like AWS, GCP and Azure. Data engineering tools to store, process and analyze data. AI frameworks and libraries – Like TensorFlow, PyTorch, and scikit-learn to build on the shoulders of others. Collaboration and version control tools – Notebooks and using platforms like GitHub and GitLab enable collaboration, code sharing, and version control. Once you have the tools you need to plan how to operate them: Data governance – Data rules (and regulated), so establish data governance policies and procedures to ensure data quality, security, and compliance with regulations. Agile development – Agile became standard in software, and its principles like iterative and incremental development of AI prototypes and solutions should be used as much as possible. Continuous integration and deployment (CI/CD) – When moving to production, the “production line” should be automated as much as possible, so changes are fast and agile. Model monitoring and maintenance – Any deployed AI model should be monitored for performance and maintenance when accuracy is reduced due to natural data changes. Stopping rules or KPIs. R&D should produce results with value, those should be traced with Key Performance Indicators like: Research output – For basic research count the number of publications and impact factor. Innovation pipeline – Count the number of AI projects in various stages of development, from ideation to deployment, to ensure a healthy innovation pipeline. Average time to market – Measure the time taken from project initiation to the deployment of AI solutions to drive efficiency and competitiveness. Number of patents – Patents are the gates to commercialization, so in applied research it’s a good measure. Return on investment (ROI) – Evaluate the financial impact of AI projects, considering factors such as cost savings, revenue generation, and operational