Transitioning to Wartime Leadership in the Age of AI

?? In my prior article, "Will AI Disrupt Your Industry? (Here's How to Tell)," I proposed a framework for evaluating what impact the rapid acceleration of artificial intelligence could have on your industry.

If you believe AI innovation will be sustaining, then your company can leverage it to strengthen your current business model. But if it looks to be disruptive, either from the low-end of the market or by expanding the market to non-consumer, then you'll need to prepare for major changes. As I put it:

As a business owner or executive, it's crucial to identify where your industry sits within this framework. Are you poised to lead with AI, or will you need to defend against it?

?? The AI Catalyst: In the 12 months since the public release of Chat GPT, the adoption of generative AI has moved at a faster speed than any new technology I've seen during my career. If your industry faces disruption, your company will need to transform quickly in order to survive.

Leading a transformation like this won't be as simple as circulating a slide deck outlining a new strategy. The leaders who succeed will have to give careful consideration to their own approach to management.

?? Peace and War: As venture capitalist Ben Horowitz outlined in his classic post "Peacetime CEO/Wartime CEO," executives must frequently pivot to a wartime footing to navigate existential threats. Stealing a page from Horowitz's framework, let's explore how leaders facing disruption need to adapt.

Horowitz characterizes peacetime CEOs as leaders focused on optimizing their companies' culture, people, and processes. By contrast, wartime CEOs are generals fighting for survival--like Andy Grove at Intel in the 1980s, or Steve Jobs when he returned to Apple in the late-1990s.

?? Adapting to Wartime Leadership: AI's disruptive threat signals a period of accelerated change marked by upended business models and new entrants to the industry. Among other things, this will require:

1. Decisive Decision-Making: In wartime, indecision can be fatal. Make use of available data, but the reality is at times you'll need to make swift, assertive decisions with imperfect information.
2. Focused Vision and Communication: Narrow your objectives and communicate them with unmistakable clarity. In wartime, a laser-focused mission is essential.
3. Cultivating Agility and Resilience: Encourage your team to embrace change and face disruption head-on. Adaptability is now a survival skill.

?? If AI is poised to disrupt your industry, the need for wartime leadership becomes paramount. Evaluate your approach and consider how you can lead your team effectively in this new landscape.

P.S. Stay tuned for the next article in our series on technological disruption, where we'll dive further into the strategic challenges that come from AI disruption.

Eric M. Jackson is a technology executive & strategy consultant. As part of Peter Thiel's early-PayPal team, he oversaw the implementation of PayPal's revenue model, and in the years since has created and advised multiple technology businesses. A sought-after speaker and award-winning author of The PayPal Wars, Jackson lives in Los Angeles with his wife and two daughters.