WorkLab Havard's Raffaella Sadun on why it's so hard to become a Frontier Firm
Nov 19, 2025
Raffaella Sadun, Charles E. Wilson Professor at Harvard Business School, delves into the essence of Frontier Firms—organizations that thrive through innovative experimentation and human-AI collaboration. She emphasizes the challenges of reskilling, advocating for a clear strategy and the right mindset shift for employees. Sadun also outlines practical steps for leaders to empower their teams and drive transformation. From embedding development in managers' roles to encouraging employees to become AI inventors, her insights are actionable and thought-provoking.
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AI Democratizes Tacit Knowledge
- AI promises to democratize expert tacit knowledge and make it widely usable across organizations.
- This creates huge potential but also deep challenges in integrating that knowledge into firm processes.
Every Firm Has Its Own J Curve
- Each firm faces its own "J curve" when adopting AI, with varied dips and payoffs.
- Firms must experiment because their trajectories and returns will differ greatly.
Tie Experiments To Your Core Value
- Define your firm's core value and strategic boundaries before experimenting with AI.
- Use that clarity to focus experiments on improving product, service, or cost within those boundaries.