In a new book, "Event Horizon Strategy: Enhance Careers, Create Business Value, and Avoid Industry Disruption with Generative AI," INSEAD Professor Jason Davis explores the complexities of artificial intelligence and its impact on global businesses. As AI technology advances, organizations face decisions about navigating an uncertain future.
Davis compares AI's influence to black holes in cosmology. He explains that both are "singularities," unknown territories with powerful effects. AI, like black holes, is too significant and potentially transformative to ignore.
Drawing from his research on AI's impacts, Davis' book presents case studies from companies like OpenAI, Tesla, and Palantir. He identifies three strategies businesses are using in response to the AI revolution:
1. Circumnavigation and Delay: Some companies avoid direct engagement with AI, focusing on short-term profit maximization, but risk being unprepared for future disruptions.
2. Direct Descent: This approach involves companies aggressively pursuing AI to be field leaders, offering significant rewards alongside substantial risks.
3. Flexible Experimentation: This strategy emphasizes strategic, phased investments in AI, learning, and adaptability. Firms experiment with AI in specific areas to gain insights and build future capabilities.
Davis stresses the need for flexibility in AI adoption, highlighting the importance of experimentation and continuous learning for businesses to thrive. He states, “The key to deriving value from Gen AI appears to be strategic decision making around the constantly evolving best practice use cases that improve workflows and innovation in organizations.”
Published by Dragon Dance Publishing on November 28, the book offers valuable insights for business leaders aiming to leverage AI's power while managing its risks. The book can be ordered from Amazon.
About the author, Jason Davis is an Associate Professor of Entrepreneurship and Family Enterprise at INSEAD. He is an expert on digital transformation and innovation in large enterprises, as well as startups' strategies in digital platform ecosystems. Davis’ work has appeared in leading academic journals and various prominent publications. He teaches AI entrepreneurship to MBA students and directs the Leading AI and Digital Transformation executive education program at INSEAD.
For more information, potential buyers can visit the book’s page on Amazon.