HBR IdeaCast To Improve AI Outcomes, Think About the Entire System
17 snips
Oct 4, 2022 Joshua Gans, a professor at the University of Toronto's Rotman School of Management, discusses the systemic approach required for effective AI integration in businesses. He highlights that many companies merely scrape data without fully leveraging AI’s potential. Gans explores the complexities of AI implementation, particularly in supply chains and healthcare, arguing for improved coordination and proactive leadership. He also draws parallels to historical technological shifts, illustrating how power dynamics influence change management in organizations.
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AI's Systemic Impact
- Businesses often overestimate AI's immediate impact, expecting insights alone to suffice.
- Realizing AI's full potential requires systemic change, coordinating decisions across an organization, not just improving predictions.
AI in America's Cup
- Team New Zealand used AI in the America's Cup to optimize boat design through simulations.
- By automating simulations, they rapidly iterated designs, exceeding human capabilities.
Rules vs. Predictions
- Companies often develop rules to cope with uncertainty when predictions are unavailable.
- Implementing AI disrupts this by offering predictions, requiring systemic change, which established companies struggle with, creating opportunities for startups.
