Strategy is about making the future happen, not just reacting to it, according to author Gary Hamel. And with generative artificial intelligence, senior leaders suddenly wield an awesome new tool to change the fortunes of their organizations. The promise of generative AI is more than just a sweet hack to boost productivity and streamline operations. Its deeper potential lies in companies that rethink what they do and conjure brand-new, AI-first products and services. Simply put, generative AI is blasting open new strategic paths to create novel business opportunities, even as it brings serious risks and heightened competition.
In this episode, How Generative AI Changes Strategy, HBR editor in chief Adi Ignatius speaks to Microsoft’s head of strategy Chris Young and Harvard Business School professor Andy Wu. They lay out the technology, its emerging value chains, and its main providers. They also break down the key choices and tradeoffs that large and small companies alike will be making in this fast-changing market.
This is the fourth and final episode in the special series How Generative AI Changes Everything. Each week, HBR editor in chief Adi Ignatius and HBR editor Amy Bernstein have been hosting conversations with experts and business leaders about the impact of generative AI. Find those episodes on the impact on productivity, creativity, and organizational culture in the HBR IdeaCast feed.
And for more on ethics in the age of AI, check out HBR’s Big Idea on implementing the new technology responsibly.
In recent years, Artificial Intelligence (AI) has experienced a radical transformation. Generative AI, in particular, has emerged as a revolutionary technology that can create useful content from raw input data. This has far-reaching consequences for how organizations use AI to develop and implement their overall strategy.
Generative AI is powered by advanced algorithms that are used to generate new and unique data, which enables many possibilities for businesses and organizations. For example, generative AI can be used to generate content and products, solve complex problems, and provide unique insights into customer behavior. The technology can also be used to optimize pricing strategies, improve automation, and make better decisions through predictive analysis.
Organizations can use generative AI to drive innovation by creating products and services that better meet customer needs. For example, a company can use generative AI to rapidly develop new product and service offerings that respond to customer feedback and demand, or automatically adjust to changing markets and conditions. Similarly, generative AI can be used to develop new marketing strategies that are more targeted and effective.
Organizations can also use generative AI to develop new strategies to optimize operational performance. The technology can be used to automate mundane tasks that would otherwise require significant amounts of human labor. Additionally, predictive analysis can be used to anticipate customer needs and provide more accurate forecasts of usage and demand.
In an increasingly competitive landscape where there are increasing pressures to outperform rivals, generative AI can give organizations an edge. The technology can create powerful opportunities for businesses to identify and capitalize on opportunities, while also creating new avenues to foster innovation.
Generative AI has the potential to completely transform how organizations develop and implement their strategies. By providing a unique set of capabilities, the technology can enable businesses to quickly adapt to changing markets and conditions, optimize internal efficiencies, and create new products and services. In doing so, generative AI can help organizations gain a competitive edge in a highly competitive marketplace.