Generative AI Strategy: Beyond Conventional Wisdom

With every company in the world focused on Generative AI (particularly ChatGPT) and its applications, it is essential to have a Generative AI strategy. Companies are eager to explore potential use cases and features they can build within their products. However, the notion of a company attempting to do it all - implementing every conceivable ChatGPT capability across products - is a risky proposition.

In my experience companies adopting such a strategy for any AI application fail to create significant value in their attempt to do it all. Having a broad based generative AI strategy to get better at everything virtually guarantees mediocrity. Companies that spread their resources over every possible generative AI value creation lever -summarization, syntheses, co-pilot, Q&A, chat assistant etc.- across products end up building “me to” features because they lack the means to be truly distinctive.

Alternatively, I believe a better way to create a differentiation OR distinctive generative AI capabilities is to take a Reverse Position- a strategic concept pioneered by Harvard Marketing Prof. Young me Moon. According to Moon, reverse positioning involves “identifying a unique and attractive point of view that is opposite of conventional wisdom.” To me this is much more viable option than the conventional wisdom of do it all.

Making strategic decisions is never easy, especially when resources are scarce and timelines are tight. When faced with this situation, it is often best to take a reverse position and focus energy on select areas. This is what my team and I did at my present company. After many conversations with the internal stkeholders, we decided to focus on text to query, summarization, and Q&A ChatGPT capabilities for our procurement and supply chain products and services.

This decision was not easy, as it required a great deal of conviction to pursue a strategy when executive ambitions and expectations are high. We had to weigh the trade-offs of what to do and what not to do, and make a commitment to certain areas while letting go of others. In the end, this decision was key to helping us build something truly distinctive.

To sum it all, the key to success in Generative AI is to gain a clear perspective on the interplay of AI capabilities, product knowledge, and knowhow on what customer values. This will help AI teams to create value and develop a sound strategy that will stand out to customers.?