How CXOs should deal with AI

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Before we even start to talk about AI, I want to share the most valuable insight, I learnt hard way from Stock Markets.

I have been an active Stock Market Investor & Trader for last two decades now.

Investing is easy because everybody will surely be right in the long term. The index will go only one way and that is up. (The main precaution you should take here is - Review your portfolio of stocks every three years. Remember, Index goes up but the stocks 'inside' it do change regularly. Stocks can be vulnerable.)

Trading is tough, especially the Futures & Options (F&O), mainly because of one major misunderstanding. Most people try to predict the trend beforehand.

Everyone thinks that trading is about 'being right'. It is NOT. Trading is about 'being flexible'.

No one can predict the trend. So don't even try to do it. This is in fact my biggest insight about trading.

Never try to predict the trend in advance and take your positions. Instead, be flexible enough and take your positions early but only when the trend actually starts showing up on the screen.

But why am I voicing it out here in 'The CXO Journal'?

Because it has a lot to do with the new elephant in the room, AI.

How CXOs should deal with AI is the biggest question in front of all of us.

Let's try to find out an answer to this today.

My insight from stock market is applicable to AI as well.

There is a lot of gyaan around AI everywhere. People are talking about it as if they are experts. The fact is that no one knows how it will evolve, when it will be a force to reckon with and where will it prominently change the game.

Having said that, one thing is absolutely clear - AI is here to stay. It will have an impact. What CXOs should worry about is how to leverage it for their benefits.

Let's learn from the past :

Let's look at history about CHANGE. Dot-com era began in 2000s. But in the early days there was a huge 'dot-com bubble'. All because, everyone was only bullish about the dot-coms. In actual, it took almost 20 years to get it materialized in true sense. This is because :

People overestimate the CHANGE and underestimate the CHANGE MANAGEMENT.

The same logic applies to AI. AI will surely materialize but when, where & how much is still the question. In addition to that, we should also consider the change management 'inertia'.

How AI will Evolve :

I think there will be a theme. Look at the image below to get an idea about how Humans will work with AI.

Broadly what we all do in business (rather life), is classified into Information, Knowledge and Wisdom.

Information consists of 'who, what, when and where' of stuff around you. Knowledge is the next level and consists of HOW part. Wisdom is the ultimate thing which tells us about the WHY part. AI will dominate the information related tasks, AI and Humans will share the tasks related to Knowledge. Wisdom will mostly belong to the Human beings in future.

In short, for human beings there will be transition from Information-centric jobs to those rooted in 'Knowledge' and 'Wisdom'.

Jobs that rely solely on information processing are likely to be automated. CXOs should utilize the power of AI to take over the information-centric tasks and promote human beings in the organization to move up the value chain and manage 'Knowledge' and if possible, 'Wisdom' related work.

Unlike raw data, knowledge involves the understanding, synthesis, and application of information to solve complex problems. While AI excels at processing vast amounts of data quickly, it lacks the nuanced understanding and contextual awareness that human intelligence brings to the table.

Knowledge-related work encompasses a spectrum of activities, from strategic decision-making to creative problem-solving. Humans possess the ability to apply critical thinking, emotional intelligence, and creativity, which are crucial elements in addressing multifaceted challenges that often transcend the boundaries of raw data.

In future, humans will collaborate with AI to share the responsibilities of knowledge-related tasks. AI can assist in data analysis, generate insights, and provide recommendations, while humans contribute their cognitive abilities to interpret results, devise innovative solutions, and adapt to dynamic scenarios.

'Wisdom' will stay with the Human Beings :

Beyond knowledge lies the realm of wisdom, a domain uniquely human.

Wisdom involves the application of knowledge and experience in a context-sensitive manner, taking into account ethical considerations, societal implications, and long-term consequences.

Wisdom-related jobs require a deep understanding of human values, cultural nuances, and the ability to navigate complex moral dilemmas.

In a future where AI permeates various aspects of our professional lives, wisdom-related roles will remain exclusive to humans. The intuitive understanding of human emotions, empathy, and ethical decision-making sets humans apart from machines. These roles may include leadership positions, mentorship, counseling, and fields that demand a profound connection with the human experience.

In Summary, CXOs should essentially use AI for Information related tasks to start with and promote human beings inside the organization to do the 'Knowledge' and 'Wisdom' related work, as much as possible. Having said that, there will be multiple collaborative partnerships between the Humans and AI at all levels.

AI Readiness of your Organization :

Now comes the main point. Taking my insight from stock markets,

We don't need to be right about AI, but we need to be flexible about it.

So, How Flexible is your organization for AI Adoption? Are you ready for AI?

You need an action plan to improve the 'AI Readiness' of your organization and enable it to be flexible enough for 'AI Adoption'.

Here is a simple assessment to help you do that.

This assessment will ask you questions which will ignite thoughts related your AI Readiness and guide you on what your organization should do, to implement AI efficiently and effectively.

Click here to make yourself flexible and deal with AI efficiently and effectively.

I hope this is helpful.

Please do share your experiences in comments to make this discussion richer and let everyone learn more from the same.

Regards,

Chanakya Joshi

Founder & CEO,

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