In an era where many companies scramble to find uses for AI, Raman Achutaraman advocates for the opposite approach.

“We always want to solve a business problem,” he said during a fireside chat at From Day One's Silicon Valley HR conference. “But you’ve got to find what value you’re going to generate, and then which tech comes along the way.” 

For Achutaraman, the SVP of operations, AI and productivity at Applied Materials, this problem‑first philosophy is the guiding principle behind a sweeping digital transformation at one of the world’s most vital technology companies.

The Quiet Giant of the Semiconductor Revolution

Applied Materials doesn’t manufacture the tech gadgets that have become part of our daily lives, like smartphones and laptops; instead, it builds the multi‑million‑dollar equipment that manufacturers use to produce the semiconductors inside them. 

As Achutaraman said to Steve Koepp, co-founder and editor at From Day One, who moderated the conversation, a single advanced logic chip requires roughly 2,000 processing steps and three months to complete, despite being “a thousand times smaller than a human hair.” 

Founded in 1967, Applied Materials predates companies such as Apple and Intel in Silicon Valley and now employs more than 36,000 people globally.  

The company’s immense global footprint, supercharged by the accelerating AI revolution, makes digital transformation an urgent directive. To help meet this objective, Achutaraman’s role was created specifically to unify an organization that had grown “very global” and “very vertical.” He frames his team as an “internal consulting arm,” a nimble force that’s embedded in the middle to drive collective growth and navigate the friction of cross‑functional execution.

Innovating the Way We Innovate

When generative AI burst onto the scene, Achutaraman joined forces with the company's CIO and CTO to form a leadership trio that would charter the company's AI journey. Their guiding principle was to avoid using “AI for the sake of AI.” Instead, they focused on re‑engineering decades‑old workflows. They worked to “innovate the way we innovate,” Achutaraman said.

This mindset has led to a deliberate, problem‑centric rollout. The company established rigorous governance structures early on instead of unleashing every new tool on its workforce, addressing cybersecurity, intellectual property protection, and ethical concerns before any technology was deployed. “Almost the [entire] first year was really focused on making sure that anything we do doesn’t break,” Achutaraman said.

The Cohort Program: From Office Hours to Change Agents

Training 36,000 people on technology that evolves “every 15 minutes” requires more than a library of online courses. Achutaraman’s team launched a hands-on cohort program that pairs employees who have specific problems adopting artificial intelligence with mentors who are already advanced users. 

The program started small with weekly office hours where any employee could drop in with questions. It has since grown into a structured initiative. Last year, more than 1,000 employees applied to participate, and 250 were selected to work one‑on‑one with mentors.

“When they solve their own problems using something, they start thinking about what else they can do with it,” Achutaraman said. “And they also act as the change agents going across the organization.” 

This peer‑driven model has proven to be far more effective than top‑down mandates, creating a self‑propagating network of AI champions throughout the organization.

Data Quality and the Scientific Revolution

Despite all the excitement surrounding large language models, Achutaraman emphasizes that the real frontier lies in scientific and engineering data. The publicly available corpus of information, research papers, and technical articles is often biased toward positive results and lacks the calibration needed for rigorous scientific work. “You’ve got to generate your own data,” he added.

To that end, Applied Materials is investing billions in a new research and development lab in Sunnyvale, California. The facility will help generate high‑quality data that will fuel the next generation of semiconductor innovation. 

“Having data at the right rate, using AI to be able to solve complex problems, needs not just AI. You actually need a whole bunch of other things: engineering, physical infrastructure, and actual experiments,” he said. 

Achutaraman also highlighted how Applied Materials' HR team is applying AI across the talent lifecycle. The technology is actively transforming every workflow, from analyzing Workday data to piloting AI‑powered manager coaching tools. 

Faster Insights, Better Decisions

Achutaraman remains firmly in the optimistic camp despite the accelerating pace of AI development. He sees the technology as a tool for gaining insights faster than a human ever could, enabling better decisions. He offered a personal example, using AI to digest decades of his aging parents’ complex health records, scattered across paper files and different doctors in India, to identify the right questions to ask their physicians. 

“Within five minutes, you’re able to at least find what questions to ask,” he said. “It’s not that you want the answers. The most important thing AI gives you is what questions to ask.” That perspective may be the most valuable takeaway for any leader navigating the AI revolution. The technology doesn’t replace human judgment; it equips people with faster insights, allowing for better decisions in an increasingly complex world. 

As Achutaraman put it, “It’s about faster insights and better quality decisions. It will give you insights that you would have missed.”

Ade Akin covers artificial intelligence, workplace wellness, HR trends, and digital health solutions.

(Photos by Josh Larson for From Day One)