Massive Investments in AI Make No Sense Right Now, Advises Andrej Hájek from FLO, Which Is Already Competing with the Big Four

“FLO was founded in 2021 as a progressive consulting firm focused on digital transformations with a strong emphasis on customer experience,” explains CEO Andrej Hájek. “Digital transformation has evolved significantly over the last two to three years, and consulting has changed rapidly alongside it. Clients now expect more than just theory and strategy—they want tangible results. In short, they want to see theory put into practice.”

FLO is now, according to Hájek, working intensively with artificial intelligence but remains cautious about its limitations. “Artificial Intelligence has made significant progress, but it is still in its early stages. Companies should incorporate AI into their strategies, but massive investments don’t make sense yet,” he points out.

How does FLO approach digital transformations in today’s rapidly changing technological world? What is your advice to clients in a nutshell?

Digital transformations are nothing new, but they have gained momentum in recent years. Customer experience is just as crucial as technology. Therefore, transformations must be led by the business.

Companies are beginning to realize that digital transformation is not just about IT upgrades—system replacements alone are not enough. The customer plays a primary role, and therefore, changes must be driven directly by business needs.

The focus of digital transformation is shifting toward customers but also internally toward employees. Organisations that are not flexible and unable to adapt to external changes have little chance of succeeding.

Digital transformation is no longer about creating standalone projects or launching large-scale initiatives that span three to five years. Today, it is an ongoing process that requires a comprehensive, long-term perspective.

At FLO, we start with data—understanding what the business needs and how to achieve it. Companies must recognise that modernisation should be continuous and broken down into smaller blocks.

And most importantly, They must design a business and technological framework that can scale and adapt over time, as year-to-year changes are now significant—sometimes even drastic.

Is this fundamental advice applicable to all types of businesses? Should scalability be a key consideration in digital transformation? Given the rapid pace of development, is it best to break everything down into individual components that can be quickly replaced when needed?

It’s one of our fundamental pieces of advice. The principle of scalability is nothing new, but over the past two years, it has become even more critical—mainly due to the rapid evolution of relevant technologies and processes, some of which can now operate semi-autonomously.

Equally important, however, is what connects these individual components together — a clear vision and a strong focus, especially when it comes to product centric matters.

You spent a long time working in Australia. What experiences did you bring back from there?

Australia is a very progressive region, even though that may not be the perception in Europe or America. Over the past decade, the government has actively pushed the agenda of digitalisation forward — and you can feel the impact.

This is particularly true for the public sector, finance, commerce, and the automotive industry, where significant progress is evident. In some areas, Australia is even five years ahead of Central Europe.

One challenge with digital transformation is that legislation often isn’t prepared for it. However, when governments actively support digital initiatives, it accelerates broader business and societal changes.

Digital transformation can often face challenges, particularly when legislation isn’t ready to support it. However, when the government actively drives digital agenda, it creates momentum, accelerating major changes across various businesses.

What precisely could we learn from Australia in the Czech Republic?

For example, the digital driver’s license.  A driver’s license in Australia is used for much more than just driving—it serves as a form of ID for entering bars, verification of banking applications, and obtaining various permits and licences. While the concept of Australian identity is quite complex, the digital version significantly simplifies and enhances the experience.

For instance, a police officer or an official only needs to scan your driver’s license from your phone, and all is done. While the Czech Republic is also taking steps toward digitalisation, other countries are still further ahead.

What does FLO’s client base look like today?

It has changed significantly in recent times. We work with clients ranging from mid-sized businesses to large corporations. Some of our key clients include Erste Group or Linet—both companies with an international footprint supported by our Czech business. Locally, we also collaborate with brands like Porsche and Heineken.

We recently won a major tender that will see us supporting a significant brand, client that we already support locally. Now, we will be serving more than 20 additional countries. This is intended to be a long-term collaboration, spanning several years.

We outperformed significantly larger global agencies and convinced the client that we have the right people—ones who will approach this project with both professionalism and passion. I believe that truly resonated with them.

Will you serve this client in those more than 20 countries from the Czech Republic?

Absolutely, we have years of experience with this. From the Czech Republic, we can efficiently serve both Australia and the United States. We know how to handle time zone differences, and we can manage up to 70% of activities from Prague. In this particular tender, it will likely be even more. Of course, having a local presence is also crucial. We are fully prepared for that, and we enjoy it—it’s not a problem at all.

Turning local clients into global ones—that’s the path you want to take as often as possible?

That’s our strategy. We have extensive experience with global projects. Even though FLO may still be seen as a relatively new brand, we already have tangible results to back up our expertise. We will continue to actively promote this approach and, more importantly, work intensively to make it a reality.

What are your more specific plans for 2025?

Over the past two years, we have focused on building infrastructure and laying strong foundations—it was an investment in the future. With a solid foundation and a portfolio of progressive local clients, we are now in a position to rapidly diversify and scale our services, which also accelerates the successful acquisition of new clients. Now, we want to grow even faster and onboard several more globally significant clients.

We will also be proactive in our global expansion. We are preparing to enter Switzerland and the United Kingdom. For various reasons, we have strong ties to these markets and see significant business potential there.

We will also continue to dedicate as much capacity as possible to developing services and new products related to artificial intelligence. Those who are not considering AI today will struggle to survive in the future. We will also focus on building expertise in specific industries and business sectors.

So, in 2025, will you open your branches in Switzerland and the United Kingdom?

That’s the plan, but it doesn’t mean we aren’t already operating in those markets. We have an active history and existing clients there. The next step is to designate dedicated teams responsible for our expansion, including having people physically based in those countries.

You mentioned artificial intelligence. As a digital transformation consultant, how far would you let it go? How deep? What would you allow it to do?

Whether we like it or not, the penetration of artificial intelligence across society is only a matter of time. It will be everywhere. Currently, AI is best known and most widely used in its generative form, capable of creating images, music, text, videos, and code.

Analytical AI is also widely used for processing large amounts of data, as well as interactive AI, which we know as chatbots or voicebots. However, everything will continue to evolve further over the next two to five years.

The next generation of artificial intelligence will be multifunctional, capable of solving complex problems. This form is known as Artificial General Intelligence (AGI).

No one knows exactly how the race for AGI will unfold, but it will be a major driver of change. In this context, AI is still in its infancy, and massive investments don’t make sense yet.

So, it’s essential to monitor everything, stay flexible, and adapt to whatever comes next

It’s essential to find the right balance. Personally, I believe that AI will be indispensable—especially in the context of process automation, where it will be unavoidable.

However, it won’t be just about AI. Many companies underestimate cybersecurity. I strongly recommend addressing this aspect proactively as well. Think, plan, and set a clear vision. Prepare the infrastructure and get ready.

We talked about how your business is still based on personal contact, requiring you to travel and meet clients in person. Does this mean that AI won’t replace humans? That we will simply work alongside it, using it to make our lives easier, but the dystopian scenarios aren’t really a threat?

I definitely don’t think so. AI has its limits. Advancing it as part of technological progress is one thing, but fully autonomous artificial intelligence is a kind of nirvana—it may or may not become a reality.