Artificial Intelligence and Business Strategy

IN COLLABORATION WITH:

The Artificial Intelligence and Business Strategy initiative explores the growing use of artificial intelligence in the business landscape. The exploration looks specifically at how AI is affecting the development and execution of strategy in organizations.

The initiative researches and reports on how AI is spurring workforce change, data management, privacy, cross-entity collaboration, and generating new ethical challenges for business. It looks at new risks and threats in dependency, job loss, and security. And it seeks to help managers understand and act on the tremendous opportunity from the combination of human and machine intelligence.

Research and analysis for the initiative is in collaboration with and sponsored by Boston Consulting Group.

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Are AI Learning Scenarios Unpredictable Enough?

  • Blog
  • Read Time: 4 min 

AI’s strength is processing input from many signals quickly to build an accurate short-term estimate of what will happen. But sooner or later, AI must confront the dark side of human behavior in real-world situations — where people don’t always respond in ways that make sense. The concern: When people know what AI will do, but AI can’t predict how people may behave, there’s an opportunity to “game the system” in ways that hurt businesses that use AI.

Justifying Human Involvement in the AI Decision-Making Loop

  • Blog
  • Read Time: 4 min 

Though AI is far from perfect, vast training data has given smart systems formidable accuracy in making independent decisions. Yet even as these decision-making capabilities improve, a Cold War history lesson reminds us that human involvement may still be needed to avoid intolerable consequences of incorrect AI decisions.

AI in the Boardroom: The Next Realm of Corporate Governance

Business has become too complex for boards and CEOs to make good decisions without intelligent systems. Just as artificial intelligence helps doctors use patient data to make better diagnoses and create individualized medical solutions, AI can help business leaders know more precisely which strategy and investments will provide exponential growth and value in an increasingly competitive marketplace.

Five Management Strategies for Getting the Most From AI

A global survey by the McKinsey Global Institute finds that AI is delivering real value to companies that use it across operations. C-level executives report that when they adopt AI at scale — meaning they deploy AI across technology groups, use AI in the most core parts of their value chains, and have the full support of their executive leadership — they are finding not just cost-cutting opportunities, but new potential for business growth, too.

Reshaping Business With Artificial Intelligence

Disruption from artificial intelligence (AI) is here, but many company leaders aren’t sure what to expect from AI or how it fits into their business model. Yet with change coming at breakneck speed, the time to identify your company’s AI strategy is now. MIT Sloan Management Review has partnered with The Boston Consulting Group to provide baseline information on the strategies used by companies leading in AI, the prospects for its growth, and the steps executives need to take to develop a strategy for their business.

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Accelerate Access to Data and Analytics With AI

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  • Read Time: 5 min 

Detailed and data-rich insights won’t help your company if your employees don’t know where to find them — but that’s a problem AI can solve. Machine learning can enable faster organizational learning by helping each employee quickly understand what others in the organization understand — forming a knowledge distribution network.

Video: Preparing for the Changes AI Will Bring to Tomorrow’s Jobs

At the MIT Sloan School of Management’s 14th annual CIO Symposium, “The CIO Adventure: Now, Next and… Beyond,” senior IT executives came together to discuss key technologies, including how AI will transform the workplace. The goal: to help prepare these tech leaders for challenges they face, including shepherding ongoing digital transformations, building a digital organization, and managing IT talent.

Romantic and Rational Approaches to Artificial Intelligence

Organizations have made rapid gains in their ability to generate big data sets, but the ability of managers and executives to develop insights from that data has lagged behind. Data processing by artificial intelligence offers the prospect of speeding things up — but it also risks expanding the gap, as managers lack understanding of how AI reaches its data-based conclusions.

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How Digital Media Will Bring Out Our Best Selves in the Workplace

Tomorrow’s most productive individuals will have more and better digital versions of themselves. The vision: Individuals will be able to utilize customized software and digital tools to improve their performance and productivity, with these digital versions of themselves able to significantly outperform their average self. In this world, AI will stand for “Augmented Introspection” as well as “Artificial Intelligence.”

AI and the Need for Speed

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  • Read Time: 4 min 

AI is rapidly changing how organizations make decisions, serve customers, increase quality, and reduce costs. But the pace of change may be too fast for managers to effectively manage processes, react to new problems, and learn from data whose usefulness has a shorter and shorter lifespan.

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Managing With Immature AI

  • Blog
  • Read Time: 4 min 

Though the current state of AI falls short of its promise, managers should find ways to incorporate it into business practices now. Using pragmatic, thoughtful experiments and being transparent with customers and suppliers, organizations can learn and develop their own capabilities as AI continues to rapidly evolve.

Companies Brace for Decade of Disruption From AI

  • Blog
  • Read Time: 5 min 

With investments in Big Data bearing fruit, what do executives expect from the future? A new survey finds that artificial intelligence and machine learning are rapidly emerging avenues for innovation — and disruption. Nearly half of senior executives surveyed, from companies like American Express, Disney, Ford Motors, and General Electric, see disruptive change coming fast.

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