Reflecting on Implications of AI on Business Strategy

Over the past 6 weeks, I have been part of the most recent cohort of the Implications of AI on Business Strategy course at MIT Sloan School of Management. As this course winds down, I was reflecting on some of the key lessons learned for me and thought I would share them

Today’s AI is here to augment human intelligence not replace it

Artificial intelligence and machine learning offer plenty of opportunities for organizations - opportunities to make smarter decisions, be more effective and drive increased value. This has led to significant fear mongering around how AI will lead to lost jobs. In fact, a couple of weeks ago this was one of the trending stories on LinkedIn

‘Automation is coming for our jobs — and there’s not much our government is doing about it, says author Alissa Quart. Women are most at risk, with studies showing 57% of the 1.4 million U.S. jobs that will be “disrupted” by robotization by 2026 are those held by females.’

There are a lot of issues with that headline, not the least of which is - what the hell are male jobs vs. female jobs (it’s 2018 and I can't imagine jobs still being described in such an archaic way). That faux pas aside, I am part of the group of optimists that believe that while AI will replace us when it comes to some of the more mundane and repetitive tasks, it will enable people to focus on higher value tasks and make our lives better. Quoting an article in the CIO magazine -

‘In a world where robots do most of the work, humans will become more creative and use their time to dream and create new things, go to new places (e.g., space exploration), and make the environment cleaner rather than worrying about putting a meal on the table at the end of the day.’

That is the optimistic version of the future. But today’s AI is no different. Whether we use AI to help call center employees provide better customer service, or use it to improve overall population health by identifying high-risk patients and enabling their doctors to stage preventative interventions - AI is here to help.

And key to success is understanding that the most effective way to realize the value of AI is when artificial intelligence complements human intelligence to create value that neither could create alone (and this aligns with the concept of emergence after all).

Despite the hype, we have only scratched the surface of what's possible

Most AI enthusiasts will admit that we are still in the early part of the technology adoption curve. Despite the range of use cases for machine learning and artificial intelligence, I think we have only scratched the surface of what’s possible.

Don’t get me wrong, organizations are already deriving a lot of value from machine learning, AI and robotics. And this value has helped them gain a competitive advantage which continues to compound as we push the frontier. But this is just the start of the journey. As technologies advance, today’s break through will become tomorrow’s SOP (standard operating procedure) for the industry. And herein lies the challenge for organizations. There is a real threat that if an organization decides to wait in the wings, they might just be left behind as the old operating model and customer engagement models are discarded before they are able to adapt and adopt.

The immense interest in the field is necessary considering the wide-ranging implications

One of the most amazing parts of the course was the diversity of experience and global presence of my cohort. Their perspective, knowledge and experience with AI challenged my thinking of what is possible with AI – today and in the future.

The diversity of the group also made me realize that the interest in AI goes way beyond the traditional technologists and futurists. And the course made us realize why the current plethora of interest is necessary. AI is no doubt going to be a disruptive technology, but as noted in NY Times -

‘Technology itself is only one ingredient in determining the trajectory of A.I. and its influence. Economics, government policy and social attitudes will play major roles as well.’

Being a technologist, my primary focus has historically been on what the current technology can do, and how businesses can gain value from it. I would focus on the latest breakthrough in the capability of the technology and the coolest usage of AI.

But now I feel more informed about the implications of AI. I understand more about the need for us to get ahead of this technology revolution. Governments have already started building their AI strategy, and increased engagement with these strategies will be key to drive to the optimistic future I hope for.