In times of rapid change, leaders need to ask new questions. What worked before might no longer apply, and the most successful firms are those that anticipate the expiration of their current models and build the future before it's too late.
Michaël Bikard, Associate Professor of Strategy at INSEAD, shares insights into how leaders should navigate the transformative waves of innovation—particularly the rise of AI—and the strategic challenges they face in a rapidly changing world.
AI has infiltrated our world and promises profound changes to the way we live and work. Is this a fundamental shift for businesses or just another passing hype?
AI is undoubtedly transformational, but not all types of AI follow the same trajectory. Take self-driving cars as an example: while they represent a fundamental shift in society, adoption is slower than initially expected due to complex technological, societal, and ecosystem challenges. GenAI, by contrast, has found early use cases faster, yet we still need time to uncover the most viable business models that fully exploit its potential. The current excitement around AI will pass, while its broader impact will emerge gradually.
Is there a best time to jump on the GenAI bandwagon? Have we already missed it?
Timing is crucial in innovation, but it’s important to note that GenAI is still in many ways a solution looking for a problem. Companies need to assess whether they can find meaningful use cases that justify the investment—whether large or small. While it may be too late to launch a ChatGPT competitor, it's definitely not too late to identify innovative use cases that leverage GenAI’s capabilities in new ways.
Do you think the rate of technological advancements has increased in recent years, and what can leaders and executives do to create sustainable business plans for maximum growth and profitability?
I don't believe technological progress follows a steady, linear increase. Historically, innovation comes in bursts, with periods of stability in between. My late colleague Phil Anderson called this "punctuated equilibrium" at the firm or industry level. For instance, the technological advancements of the early 20th century—like electric power, cars, and phones—unfolded at a similar pace to today.
In times of rapid change, leaders need to ask new questions. What worked before might no longer apply, and the most successful firms are those that anticipate the expiration of their current models and build the future before it's too late.
Do you see a tension between corporations’ desire for growth versus their sustainability objectives?
There are certainly tensions between financial goals and sustainability, but alignment is possible. The push for greater sustainability, alongside the rise of technologies like AI, accelerates the decline of legacy business models. This opens the door to new, innovative approaches better suited to today’s world. Rather than viewing growth and sustainability as opposing forces, leaders can use this transition to develop business models that leverage both emerging technologies and the growing demand for sustainability.
Do you foresee the rate of new technologies ever slowing down?
Absolutely. Many investors overestimate how quickly AI will change the world. There will be a correction, with some investors losing money. However, corrections are not necessarily negative—they can reallocate talent and resources toward more viable, high-impact use cases. This process helps focus innovation on the most solid and valuable opportunities.
At the early stage of a new idea for innovation, how do we know how much to push forward versus when to pull the plug?
While faith in new technologies can fuel innovation, it’s equally important to base decisions on sound data. Questions like, “Does this technology add value? By how much and to whom?” and “Are we willing to accept the associated costs?” help guide these choices. Collecting the right data makes it easier to resolve debates and decide whether to push forward, pull the plug, or pivot.
What are some of the unique methodologies that INSEAD’s Leading Growth through Innovation and Technology (LGIT) programme employs to equip leaders for today’s competitive world?
In this programme, I introduce new frameworks and concepts developed over the past 20 years, based on cutting-edge research in innovation. We focus on topics such as identifying the emergence and expiration of business model opportunities and how innovators can effectively challenge the status quo. The goal is to equip leaders with tools to recognise when to embrace change and when to create new models for the future.
One of the emphases of INSEAD’s LGIT programme is having a “hands-on, on-the-ground perspective.” Why is this important?
The value of planning is tied to the quality of available data. In times of intense change, data is often incomplete or unavailable, reducing the effectiveness of traditional planning. Success, therefore, relies more on action, experimentation, and learning by doing. Those who excel aren’t necessarily the smartest or wealthiest, but the ones who can out-learn their competitors and uncover opportunities faster.
What are some of your latest interests, and do you foresee the next big innovation?
I’m fascinated by a wide range of innovations, from the future of autonomous vehicles and flying taxis to the stories of pioneers like Alexander Graham Bell with the telephone and Thomas Edison with electricity. I also keep an eye on technologies whose prime time hasn’t arrived yet, like nuclear fusion and quantum computing. Of course, I’m closely following the spread of AI. This current wave feels like a once-in-a-generation shift, similar to the internet in the 90s. I’m excited to see who will harness this wave to change the world.
