How the United States Air Force Accelerated AI Adoption
Oct 24, 2023
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In this podcast, they discuss the challenges of digital transformation in a large bureaucratic organization like the US Air Force. They explore the difference between legacy and digital native companies and the challenges of integrating systems in the Air Force. They also talk about the importance of educating the organization about AI adoption and share lessons learned in organizing innovation in the Air Force.
Large bureaucratic organizations can foster innovation by setting up dedicated innovation units within the organization or as external entities.
The Department of Defense (DOD) invests heavily in innovation and collaborates with universities to push the boundaries of AI.
Deep dives
The Challenges of Innovation in a Large Bureaucratic Organization
Innovation is crucial for growth and advancement, but large bureaucratic organizations often struggle to foster a culture of innovation. The case discussed in this podcast delves into the perils and trade-offs of digital transformation in such an organization, specifically the United States Department of Defense (DOD). While innovation is traditionally associated with startups and smaller companies, the DOD recognized the need to harness the potential of AI for national defense. The case examines the central issue of whether to set up an AI accelerator unit within the organization or as an external entity. It highlights the challenges of cultural inertia, administrative barriers, and technical debt that hinder innovation in a hierarchical setting.
The Commitment to Innovation in the Department of Defense
Contrary to popular belief, the Department of Defense (DOD) invests heavily in innovation. The DOD's commitment to innovation dates back to the Rad Lab in World War II and continues to this day with initiatives like AFWorks and the AI accelerator. The DOD collaborates with universities like MIT to conduct fundamental research and push the boundaries of AI. It emphasizes openness, publishing academic papers, and engaging in peer-reviewed research to gather feedback and advance the state of the art. The DOD's innovation efforts cover a broad range of projects, such as optimizing pilot training schedules using AI and navigating without GPS using machine learning technology.
Overcoming Challenges and Fostering Autonomy
The AI accelerator within the Department of Defense faced numerous challenges in pursuing innovation. These challenges included navigating bureaucratic structures, educating stakeholders about the potential of AI, and securing resources for projects. However, the AI accelerator had significant autonomy to make decisions and move initiatives forward. By leveraging the technical expertise of academia and building relationships with top-level decision-makers in the DOD, the AI accelerator aimed to bridge the gap between innovation and implementation. The case underscores the importance of educating decision-makers, embracing risk, and accepting the potential failure that comes with innovation.
Rewiring the Workplace for Innovation
Innovation in large organizations often requires rewiring the workplace by rethinking the roles of people, processes, products, and place. The case emphasizes the need for strategic hiring of talent suited for innovation in a hierarchical setting. It also raises questions about whether innovation units should be located within or external to the organization. To accelerate innovation, organizations must strike a balance between maintaining formal structures and fostering a more informal and open environment. The case illustrates how the AI accelerator within the DOD pursued this rewiring to create a conducive ecosystem for innovation.
In August 2022, the Pentagon tasked Victor Lopez, then a captain in the U.S. Air Force, with launching a new Air Force innovation unit that leveraged commercial developers and military talent to acquire advanced technologies. Having been granted flexibility in the setup of the office, Lopez pondered the complexities of his assignment and the decisions around organizational design he would have to make.
It’s often believed that only small start-up organizations can innovate, but a lot of innovation happens in big organizations, including government. Harvard Business School assistant professor Maria Roche is joined by Major Lopez to discuss the challenges of digital transformation in a large bureaucratic organization and the specific choices the U.S. Air Force needed to make when launching its AI Accelerator in her case, “Accelerating AI Adoption in the United States Air Force.”
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