Scott Cook

Andrei Hagiu

Julian Wright

<article-ideainbrief class="article-ideainbrief">
 <h4 class="ideainbrief-title">Idea in Brief</h4>
 <div class="ideainbrief-contents">
  <h5>The Problem</h5>
  <p>Generative AI has the potential to disrupt or commoditize businesses whose offerings previously required significant human labor and creativity. To compete, many firms will have to rethink their strategies.</p>
  <h5>The Table Stakes</h5>
  <p>Some will be able to gain an edge by leveraging widely available tools better or faster than their competitors. But that advantage will be only temporary, and using the tools will soon become table stakes.</p>
  <h5>A Differentiated Solution</h5>
  <p>Turning AI from an existential threat into an opportunity involves implementing generative AI at increasingly sophisticated levels that yield a stronger and more sustainable competitive advantage.</p>
 </div>
</article-ideainbrief><p class="mag-icon-ai-machine-learning-w30">By making it vastly easier and cheaper to create or improve products and services, generative AI has the potential to disrupt or even commoditize businesses whose offerings previously required significant human labor and creativity. To compete, many businesses will have to rethink their strategies and find new ways to add value for customers.</p>

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<p>By making it vastly easier and cheaper to improve or create products and services that previously required significant human labor and creativity, generative AI has the potential to disrupt or even commoditize many businesses.</p>
<p>Some companies will be able to gain an edge by leveraging publicly available generative AI tools better or faster than their competitors. But that advantage will be only temporary, and using the tools will soon become table stakes.</p>
<p>This means established companies will have to rethink their business strategies and find new ways to add value to their offerings. In this article, the authors consider which types of businesses have the greatest potential to gain competitive advantage from generative AI and which are most likely to be disrupted. They also offer guidance for implementing AI across three levels of sophistication that correspond to an increasingly powerful advantage.</p>

Turn Generative AI from an Existential Threat into a Competitive Advantage

By making it vastly easier and cheaper to improve or create products and services that previously required significant human labor and creativity, generative AI has the potential to disrupt or even commoditize many businesses. Some companies will be able to gain an edge by leveraging publicly available generative AI tools better or faster than their competitors. But that advantage will be only temporary, and using the tools will soon become table stakes. This means established companies will have to rethink their business strategies and find new ways to add value to their offerings. In this article, the authors consider which types of businesses have the greatest potential to gain competitive advantage from generative AI and which are most likely to be disrupted. They also offer guidance for implementing AI across three levels of sophistication that correspond to an increasingly powerful advantage.

Turn Generative AI from an Existential Threat into a Competitive Advantage

Summary.

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