What strategies should organisations adopt to navigate an uncertain future
In his new book, Event Horizon Strategy: Enhance Careers, Create Business Value, and Avoid Industry Disruption with Generative AI, INSEAD Professor Jason Davis delves into the complexities of artificial intelligence and its profound effect on businesses worldwide. As AI technology rapidly evolves, organisations face a crucial decision: how to navigate the uncertain future.
Davis likens the impact of AI to black holes in cosmology. Black holes are viewed as "singularities": unknown regions of infinite density and gravitational pull where nothing can escape. Gen AI is currently proving just as mysterious but, just like a black hole, is simply too big and potentially game-changing to ignore.
Based on Davis’ examination of the latest research on AI’s impact and in-depth case-based analysis on AI leaders such as OpenAI, Tesla and Palantir the book identifies three primary strategies firms are adopting to respond to the AI revolution:
Circumnavigation and Delay: Some firms are choosing to avoid direct engagement with AI, focusing on maximising profits in the short term. However, this approach risks leaving them unprepared for future disruptions.
Direct Descent: A few companies are aggressively pursuing AI, aiming to be pioneers in the field. While this strategy offers potential for significant rewards, it also carries substantial risks.
Flexible Experimentation: This balanced approach involves strategic, phased investments in AI, focusing on learning and adaptability. By experimenting with AI in specific areas, firms can gain valuable insights and build capabilities for the future.
Davis emphasises the importance of a flexible approach to AI adoption. By embracing experimentation and continuous learning, businesses can position themselves to thrive in the age of AI.
He says, “The key to deriving value from Gen AI appears to be strategic decision making around the constantly evolving best practice use cases that improve workflows and innovation in organisations.”
Published on November 28 by Dragon Dance Publishing, this important new book provides valuable insights for business leaders seeking to harness the power of AI while mitigating its risks.
To order the book, visit https://www.amazon.com/Event-Horizon-Strategy-Disruption-Generative/dp/B0DPD9JSB1/
About the author:
Jason Davis an Associate Professor of Entrepreneurship and Family Enterprise at INSEAD. He is an expert on digital transformation and innovation in large enterprises and the strategies of startups in digital platform ecosystems. His research has been published in top academic journals, such as the Administrative Science Quarterly and the Strategic Management Journal, and publications such as the Harvard Business Review, Financial Times, BBC, and the Wall Street Journal. At INSEAD, he teaches the Al Entrepreneurship course for MBAs and is the director of the Leading Al and Digital Transformation executive education programme.
