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Incollaborationwith
MITsloanManagementReview
〉BIGIDEAS
November2024
Learning
toManage
Uncertainty,WithAI
bySamRansbotham,DavidKiron,ShervinKhodabandeh,MichaelChu,andLeonidZhukhov
AUTHORS
SamRansbotham
isaprofessorofanalyticsattheCarrollSchoolofManagementatBostonCollege,aswellasguesteditorforMITSloanManagementReview’sArtificialIntelligenceandBusinessStrategyBigIdeasinitiative.
DavidKironistheeditorialdirector,research,ofMITSloanManagementReviewandprogramleadforitsBigIdeasresearchinitiatives.
ShervinKhodabandehisaseniorpartnerandmanagingdirectoratBostonConsultingGroup(BCG)andthecoleaderofitsAIbusiness
inNorthAmerica.HeisaleaderinBCGX
andhasover20yearsofexperiencedriving
businessimpactfromAIanddigital.Hecanbecontactedat
shervin@
.
MichaelChuisavicepresidentofdatascienceatBCG,wherehefocusesonapplyingAIandmachinelearningtobusinessproblemsin
commercialfunctions,includingoptimizingpricing,promotions,sales,andmarketing.Hecanbereachedat
chu.michael@
.
LeonidZhukhovisavicepresidentofdatascienceatBCGandleadstheTech&Biz
LabattheBCGHendersonInstitute.He
leadsthedesignandbuildofAIandmachinelearningsolutionsforBCGclientsacross
arangeofsectors.Hecanbereachedat
zhukov.leonid@
.
CONTRIBUTORS
FrançoisCandelon,ToddFitz,KevinFoley,SarahJohnson,MicheleLeeDeFilippo,MeenalPore,NamrataRajagopal,AllisonRyder,BarbaraSpindel,andDavidZuluagaMartínez
TheresearchandanalysisforthisreportwasconductedunderthedirectionoftheauthorsaspartofanMITSloanManagementReviewresearchinitiativeincollaborationwithandsponsoredbyBostonConsultingGroup.
Tocitethisreport,pleaseuse:
S.Ransbotham,D.Kiron,S.Khodabandeh,M.Chu,andL.Zhukov,“LearningtoManageUncertainty,WithAI,”MITSloanManagementReviewandBostonConsultingGroup,November2024.
SUPPORTINGSPONSORS
BCG
HENDERSONINSTITUTE
BCG》《
Copyright©MassachusettsInstituteofTechnology,2024.Allrightsreserved.REPRINT#:66262
CONTENTS
1
UncertaintyAbounds
2
CombiningOrganizationalLearningandAI-specific
LearningLeadstoAugmentedLearning
4
AugmentedLearnersAreBetterPreparedfor
ManyTypesofUncertainty
8
ThreeWaystoEnhanceOrganizational
LearningWithAI
11
DevelopingAugmentedLearningCapabilities
13
LearningWithAIIsKeytoNavigatingUncertainty
14
Appendix:TheStateofAIinBusiness
UncertaintyAbounds
Uncertaintyisallabouttheunknown.Thelessanorgani-zationknows,thegreateritsuncertaintyandthelessableitistomanageresourceseffectively.Managinguncertainty,therefore,requireslearning.Companiesneedtolearnmore,andmorequickly,tomanageuncertainty.
Addressinguncertaintyconstitutesapressingchallengeforleadership,especiallytoday,whengeopoliticaltensions,fast-movingconsumerpreferences,talentdisruptions,shiftingregulations,andrapidlyevolvingtechnologiescomplicatethebusinessenvironment.Companiesneedbettertoolsandperspectivesforlearningtomanageuncertaintyarisingfromtheseandotherbusinessdisrup-tions.Ourresearchfindsthatamajorsourceofuncertainty,artificialintelligence,isalsocriticaltomeetingthischal-lenge.Specifically:
CompaniesthatboosttheirlearningcapabilitieswithAIaresignificantlybetterequippedtohandleuncertaintyfromtechnological,regulatory,andtalent-relateddis-ruptionscomparedwithcompaniesthathavelimitedlearningcapabilities.
TheEstéeLauderCompanies(ELC)offersacaseinpoint.Thecosmeticscompanyhasastrategicneedtoanticipateconsumertrendsaheadofitscompetitors.Inearliertimes,consumerpreferencesmighthaveshiftedseasonally.Now,preferencesarelesscertain;shiftshappenmorequicklyduetosocialmediaanddigitalinfluencers.Fashiontrendscanchangebytheweek.Ifthecolorpeachsuddenlycapturesthepublic’sinterest,thecompanyneedstodiscernthattrendasquicklyaspossible.ItusesAItodetectandrap-idlyrespondtoconsumertrends.SowmyaGottipati,vicepresidentofglobalsupplychaintechnologyatELC,reportsthatthecompany,whichcarriesproductsacrossmorethan20brandsand“hundredsofdifferentshades,”usesfuzzymatchingtofigureoutwhichproductscanmeetthedemandanddelightconsumers.“WearelookingtoAItodiscoverconsumertrendsandthenmatchupourexistingproductstothetrendssothatwecanrepackagethemandpositiontheminthemarketforthattrend,”Gottipatiexplains.ELCusesAItodetectsuddenchangesandhaveamarketresponsereadysoitcanredeployinventoryandsupplychainpro-cessestomeetdemandefficiently.Companiescan’tcontrolthechangesbutcanuseAItomanagetheirresponses.
ELCisnotalone:Thecompanyisamongthe15%oforga-nizationsthatintegrateAIintotheirlearningcapabilities.Theseorganizations—whatwerefertoasAugmentedLearners—are1.6timesmorelikelythanthosewithlim-itedlearningcapabilitiestomanagevariousenvironmentalandcompany-specificuncertainties,includingunexpectedtechnological,regulatory,andworkforcechanges.Thesecompaniesaretwiceaslikelytobepreparedtomanagetalent-relateddisruptionscomparedwithorganizationsthathavelimitedlearningcapabilities.What’smore,theseorganizationsare60%-80%morelikelytobeeffectiveatmanaginguncertaintiesintheirexternalenvironmentsthanLimitedLearners—companieswithlimitedlearningcapabilities.Bydoingso,theyreapadvantageswithAIwellbeyonddirectfinancialbenefits.
Basedonaglobalsurveyof3,467respondentsandinter-viewswithnineexecutives,ourresearchquantitativelyandqualitativelyestablishesarelationshipbetweenorganiza-tionallearning,learningwithAI,andtheabilitytomanagerapidlychangingbusinessenvironments.Organizationallearningitselfhaslongbeenassociatedwithimprovedper-formance.IntegratingAIwithanorganization’slearningcapabilitiessignificantlyimprovescorporateresponsestouncertaintiesfromtalentmobility,newtechnology,andrelatedregulations.ThisreportdefinesanAI-enhancedorganizationallearningcapability(augmentedlearning),explainsitsuseinreducingtheconsiderableuncertaintymanagersfacetoday,andofferskeytakeawaysforexploit-ingthesenewabilities.
Companiesneedtolearnmore,andmorequickly,tomanageuncertainty.
1
LearningtoManageUncertainty,WithAI
ABOUTTHERESEARCH
Thisreportpresentsfindingsfromtheeighthannualglobalresearchstudyonartificialintelligenceandbusi-nessstrategybyMITSloanManagementReviewandBostonConsultingGroup.Inspring2024,wefieldedaglobalsurveyandsubsequentlyanalyzedrecordsfrom3,467respondentsrepresentingmorethan21industriesand136countries.WealsointerviewednineexecutivesleadingAIinitiativesinabroadrangeofcompaniesandindustries,includingfinancialservices,technology,retail,travelandtransportation,andhealthcare.
Ourresearchconnectsorganizationallearning,learningwithAI,andtheabilitytomanagerapidlychangingenviron-ments.ThisreportdefinesanAI-enhancedorganizationallearningcapability,explainsitsuseinreducingseveraltypesofuncertaintymanagersfacetoday,andofferskeyleader-shiptakeawaysforexploitingthesenewabilities.
Toassesswhetherorganizationshave“high”or“low”organizationalandAI-specificlearningcapabilities,weanalyzedsurveyresponsestothesestatementsusinganagree-disagreeLikertscale:
›Myorganizationlearnsthroughexperiments.(organi-zationallearning)
›Myorganizationtoleratesfailuresinexperiments.(organizationallearning)
›Myorganizationlearnsfrompostmortemsonbothsuccessfulandfailedprojects.(organizationallearning)
›Myorganizationcodifiesitslearningfrominitiatives.(organizationallearning)
›Myorganizationgathersandsharesinformationthatemployeeslearn.(organizationallearning)
›Myorganization’suseofAIleadstonewlearning.(AI-specificlearning)
›MyorganizationusesAItolearnfromperformance.(AI-specificlearning)
›MyorganizationbuildsAIsolutionswithhumanfeed-backloops.(AI-specificlearning)
›EmployeesinmyorganizationlearnfromAIsolutions.(AI-specificlearning)
Wethengroupedrespondentsintofourcategories:LimitedLearners,OrganizationalLearners,AI-specificLearners,andAugmentedLearners.
(SeeFigure2,page3
FortheSebreakdownS.)
2
MITSLOANMANAGEMENTREVIEW•BCG
CombiningOrganizationalLearningandAI-specificLearningLeadstoAugmentedLearning
Organizationallearningisanorganization’scapabilitytochangeitsknowledgethroughexperience.1Organizationsthatlearnfrommistakes,toleratefailure,capturebestpractices,andsupportnewideashaveanadvantageoverorganizationsthatdon’t:Theylearntogetbetter.Thosethatstruggletolearnwillstruggletonavigateincreasinguncertainties.Extensivepastresearchdemonstratesthebenefitsofgeneralorganizationallearning.
Generalorganizationallearningcapabilitiesdon’tneces-sarilydependonAI;organizationscanhavestrongorgani-zationallearningcapabilitieswithoutusingthetechnology.Conversely,organizationscanuseAItolearneveniftheydon’totherwisehavestrongorganizationallearningcapa-bilities.ManagerscanlearnfromgenerativeAItools,useAItodeepentheirunderstandingofperformance,anditer-atewithAItodevelopnewinsightsandprocesses.TheseindividuallearningexperiencescreatevaluefromAIbutmaynotconstituteanorganizationallearningcapability.
Ourresearchfindsthatorganizationsthatcombineorgani-zationallearningwithAI-specificlearning—AugmentedLearners—outperformorganizationsthatemployeitherapproachinisolation.AsbusinessesadoptAIandembracesuccessivelymorepowerfulAItoolsinvariouscontexts,theyhavenewopportunitiestostrengthentheirlearningcapa-bilities—forbothhumanworkersandtheirmachines.Our
priorresearch,“ExpandingAI’sImpactWithOrganizational
Learning
,”foundthatorganizationswithsuperiorlearningcapabilitiesaremorelikelytoobtainsignificantfinancialben-efitsfromtheirAIuse.2Inourlatestresearch,wefindthatthereverseisalsotrue:UsingAIcanimproveorganizationallearningcapabilities,andtheselearningimprovementsaretiedtonotonlyenhancedfinancialresultsbutalsotheabilitytomanagestrategy-relateduncertainties.
AssessingLearningCapabilities
Oursurveyinstrumentmeasuredeachenterprise’sorga-nizationallearningcapabilityusingfivequestions.WealsoassessedhowindividualsandsystemslearnwithAIthroughadifferentsetoffourquestions.Together,thesequestionsprobeseveralaspectsoforganizationallearningandAI-specificlearning:knowledgecapture,synthesis,anddissemination.(seefigure1,page3.)
Becomingadeptattheselearningactivities—whichrep-resentonlyasliceofanorganization’soveralllearningcapability—significantlyimprovesacompany’sabilitytomanageuncertainty.
MostCompaniesHaveLimitedLearningCapabilities
Giventheuncertaintiesfacingmanycompanies,it’sstrik-ingthatmostorganizationshavelimitedlearningcapabili-ties;59%ofallcompaniesrepresentedinoursamplereportlowlevelsofbothorganizationallearningandAI-specificlearning.Only29%ofrespondentsagreeorstronglyagreethattheirenterprisehasorganizationallearningcapabili-ties.While27%oforganizationsreportlearningwithAI,only15%combineAI-specificlearningwithorganizationallearningcapabilities.TheseAugmentedLearnersarethefocusofthisreport.
Organizationallearning
•Learnsthroughexperimentsandtoleratesfailure
•Supportsemployeespresentingnewideas
•Learnsfrompostmortemsonsuccessfulandfailedprojects
•Codifieslearningfrominitiatives
•Gathersandsharesinformationthatemployeeslearn
AI-specificlearning
•UsesAItoleadtonewlearning
•UsesAItolearnfromperformance
•BuildsAIsolutionswithhumanfeedbackloops
•EnablesemployeestolearnfromAIsolutions
FIGURE1
CharacteristicsofOrganizationalLearningandAI-specificLearning
Weoutlinecharacteristicsoforganizationaland
AI-specificlearningbasedonninesurveyquestions.
AI-specificLearning
OrganizatiOnallearning
LowHigh
Anorganization’scapabilitytochangeitsknowledgethroughexperience.
ai-specificlearning
Themeasureoforganizations’useofAIforlearning.
augmentedlearners
OrganizationsthatscorehighonorganizationallearningandAI-specificlearning.
limitedlearners
OrganizationsthatscorelowonorganizationallearningandAI-specificlearning.
Inourglobalsurvey,weassessedanorganizationashaving“high”or“low”organizationalandAIlearningcapabilities.Formoredetail,see“AbouttheResearch,”page2.
12%
AI-specificLearners
15%
AugmentedLearners
59%
LimitedLearners
14%
OrganizationalLearners
Low
OrganizationalLearning
High
FIGURE2
LearningCapabilitiesVary
Only15%oforganizationsareAugmentedLearners—
organizationsthatenhanceorganizationallearningwithAI.
LearningtoManageUncertainty,WithAI
3
Limitedlearningcapabilitiesconstrainopportunitiesandundermineorganizations’abilitytomanageuncertainty.
AugmentedLearnersAreBetteratManagingUncertainty
Amongoursample,15%oforganizationsreporthighlev-elsofbothorganizationallearningandAI-specificlearning.TheseAugmentedLearnersdisplayabilitiesandadvantagesthatleadtobetteroutcomesthanorganizationswithlimitedcapabilities.Theyaremorelikelytoimprovefinancialout-comeswithAIthanLimitedLearners:99%ofAugmentedLearnersreportannualizedrevenuebenefitsfromAI.
(see
sidebar,“enhancingOrganizatiOnallearningWith
aiimprOvesfinancialOutcOmes,”page5.)
What’smore,theyaremuchmorelikelytobepreparedtodealwithuncer-taintyfromtalent,technology,andlegaldisruptions.
Figure3showsthatorganizationallearningaloneorAI-specificlearningaloneofferssomebenefits,buttheircombinationrepresentsthemostpowerfulhedgeagainstmultipletypesofuncertainty.OrganizationallearningwithAImaywellprovetobeasourceofresilienceagainstotherformsofdisruptionsoruncertainty.
AugmentedLearnersAreBetterPreparedforManyTypesofUncertainty
CombiningorganizationallearningandAI-specificlearn-ingcapabilitieshelpsenterprisesmanageuncertaintyand
disruptionsfromtalentmobility,changingtechnology,andevolvingregulatoryandlegalrequirements.
(seefig-
ure5,page6.)
DisruptionsFromTalentMobility
Elevatedratesofworkersquitting,retiring,beinglaidoff,orevenghostingemployerscreaterisksandambiguitiesfororganizationsstrivingtocompete.ShilpaPrasadisheadofincubation,AIVenturesatLGNova,thesubsidiaryofLGElectronicsthatworkswithstartupstofuelinnova-tionforthecompany.Sheobservesthat“60%ofthework-forcewilllikelyhittheageof65bytheyear2028or2030,whichmeansthatalotofknowledgewillgooutfromtheworkforcebecausethey’llretire,notbecausethey’regoingsomewhereelsetowork.”Whenemployeesleaveorgani-zations,theirknowledgecanleavewiththemunlessthecompanyhaseffectiveorganizationallearningcapabilities.
Theseproblemsarenotnewfororganizations.Inindus-trieslikechemicals,aerospace,andoilandgas,retirementrateshavebeenanincreasingcauseforalarmforyears.However,companieshavenewresourcestoaddressthesechallenges.Augmentedlearningisavaluableresourceforaddressingdisruptionsfromtalentmobility.Only39%oforganizationswithlimitedlearningfeelpreparedtohan-dlethedisruptioninknowledgefromdepartingemploy-ees,butthisreadinessincreasesto64%ifthecompanieshaveorganizationallearningcapabilities.UsingAIcanfurthercontributetothisreadiness:Eighty-threepercentofAugmentedLearnersarepreparedtodealwiththeuncertaintyofknowledgedisruptionfromtalentmobil-ity—twiceasmuchasLimitedLearners.
FIGURE3
LearningWithAIHelpsOrganizationsManageUncertainty
Organizationsthatcombine
organizationalandAI-specific
learning(AugmentedLearners)are1.6timesmorelikelytofeelpreparedtomanageuncertaintythanorganizationswithlimitedlearningcapabilities.
AIwillallowustomanageuncertainty
LimitedLearners
OrganizationalLearnersAI-specificLearnersAugmentedLearners
Percentageofrespondentsineachlearningcategorywhostronglyagreeoragreewiththeabovestatement.
inourindustry.1.6×
82%
76%
58%
53%
4
MITSLOANMANAGEMENTREVIEW•BCG
SIDEBAR
ENHANCINGORGANIZATIONALLEARNINGWITHAIIMPROVESFINANCIALOUTCOMES
NumerousstudiesnowshowthedirectfinancialbenefitsofAIadoption.Clearly,organizationsarefindingwaystoextractfinancialbenefitsthroughAI,evenifmanysucheffortsfailortheircostsexceedrevenues.Extensivepastresearchalsosurfacesthegeneralbenefitsoforganizationallearningforcompanies.Inpriorresearch,wefoundthatorganizationswithsuperiorlearningcapabilitiesaremorelikelytoobtainsignifi-cantfinancialbenefitsfromtheirAIusethanorganizationswithlesserlearningcapabilities.
Inthisstudy,wefindthatusingAIcanimproveorganizationallearningcapabilitiesandthattheselearningimprovementsaresimilarlytiedtoimprovedfinancialresults.OrganizationsusingAItoimproveorganizationallearningare1.4timesmorelikely
torecognizesomerevenuebenefitsfromAIcomparedwithorganizationswithlimitedlearningcapabilities.Indeed,virtuallyalloftheseorganizations(99%)recognizeorobservesomerevenuebenefitsfromAI.What’smore,organizationsthatcombineAIandorganizationallearningaresignificantlymorelikelytohaverealizedrevenuebenefitsfromAIcomparedwithcompaniesthatexcelatorganizationallearningbutnotlearningwithAI,andwithcompaniesthatexcelatAI-specificlearningbutnotorganizationallearning.Thatis,combiningorganiza-tionallearningandAI-specificlearningenablesorganizationstocrossarevenuebenefitthresholdthatneithertypeoflearningalonecangenerate.
1.4×
Overthepastthreeyears,AIhascreatedadditionalbusinessvalue.
LimitedLearners
OrganizationalLearnersAI-specificLearnersAugmentedLearners
66%
76%
95%
89%
PercentageofrespondentswhostronglyagreeoragreethatAIhascreatedadditionalbusinessvalueoverthepastthreeyears.
1.4×
OurorganizationhasrealizedrevenuebenefitsfromAIonanannualizedbasis.
LimitedLearners
OrganizationalLearnersAI-specificLearnersAugmentedLearners
71%
72%
79%
99%
PercentageofrespondentswhoreportrevenuebenefitsfromAI.
FIGURE4
EnhancingOrganizationalLearningWithAILeadstoFinancialBenefits
Organizationsthatcombine
organizationallearningand
AI-specificlearning(AugmentedLearners)are1.4timesaslikelytorealizeadditionalbusiness
valueandannualizedrevenuebenefitsfromAI.
LearningtoManageUncertainty,WithAI
5
Asmoreandmoreworkplacecommunicationsoccurviadigitalchannels,emergingAIcapabilitiescanmakethisrawdatasensible,andtacitknowledgeaccessible,ondemand.JackieRocca,formervicepresidentofprod-uctatSlack,describeshowAIcansurfaceanddistillthetroveofinformationfrompastconversationsinaplatformlikeSlackwhenpeopleneedit.“Peoplecangetcontextfromcoworkerswholeftthecompanymonthsoryearsagoandstilllearnfromthatknowledge,”shepointsout.
GenerativeAItoolscanhelpsynthesizeanddisseminatepersonalizedknowledge.“GenAIhelpsyougetmorevalueoutofthisknowledgesothatyoucanfindwhatyou’relookingforandbemoreeffectiveinusingallthatdatathathasbeenavailabletoyoubuthasn’tbeenveryeasyforyoutoaccessanduse,”Roccasays.Whiletoolslikewikismakeiteasierforpeopletorecordknowledge,AIcapabilitiescanbolsterorganizationallearningaboutwhatworkersknow.Thatenablesorganizationstobetterhandleknowledge
Myorganizationispreparedtodealwithuncertaintyfrom…
Talentdisruptions
LimitedLearners
OrganizationalLearnersAI-specificLearnersAugmentedLearners
Technologydisruptions1.8×
LimitedLearners
OrganizationalLearnersAI-specificLearnersAugmentedLearners
Legaldisruptions
LimitedLearners
OrganizationalLearnersAI-specificLearnersAugmentedLearners
Percentageofrespondentsineachlearningcategorywhostronglyagreeoragreethattheirorganizationispreparedtodealwitheachtypeofuncertainty.Somevaluescalculatedwithrounding.
2.2×
1.6×
48%
49%
83%
86%
79%
68%
68%
39%
61%
64%
58%
71%
FIGURE5
CombiningOrganizational
LearningWithAILearningHelpsWithManyTypesofUncertainty
Organizationsthatcombine
organizationalandAI-specificlearning(AugmentedLearners)aremorelikelytomanagetalent,technology,and
legaldisruptions.
6
MITSLOANMANAGEMENTREVIEW•BCG
lossfromtalentmobility,reducinguncertaintyaroundhowandwhentocapturetacitknowledge.
Onecloudservicesproviderwasn’tpreparingforapoten-tialpandemicwhenitdevelopeditslearningtool,butwhenin-personmeetingswerenolongerpossibleduetoCOVID-19,itsplatformandmicro-learningcontentenabledthecompanytosustainandevenenhancemean-ingfuleducationalexperiences.Thecompany’sresponsibleAIleadexplainshowaninnovativelearningtoolturnedintoapowerfultoolformanaginguncertaintieswroughtbythepandemic.Beforethepandemic,thecompanyhadbegunshiftingitslearningmodulestoshorter,AI-supported“micro-adaptive”approachessuitablefora“TikTokworld.”Thepandemicnecessitatedaremoteworkenvironmentthatchangedwhatemployeesneededtoknowand,further-more,madeitmoredifficultforthecompany’seducationalcontentproviderstodeterminewhatemployeesknewanddidn’tknowonanongoingbasis.
Theadaptivemodulestailoredcontentrecommendationstoeachindividualasthesystemassessedindividualusers’learningcapabilities.“AIbecameahugepartofthat,”thisexecutivesays.“Wemonitoredusers’self-reportingandskillsself-assessmentsintheirprofilesandfromthelearningplatform.”Byanalyzingskillsandcompetencyproficiencyacrosssystemsthroughouttheorganization,thecompanyidentifiedwhatitsemployeeswerelearningandneededtolearn.Sheadds,“TheAI-enabledmodulesdidnotjustenableadifferentdeliveryofcontent;theplatformhelpedpeoplebetterunderstandwhattheyknewandhowthatintersectedwithwhattheyneededtoknow.”Drawingonthelearningapproachesandhabitsofmanyofthecompany’sworkers,thelearningmodulesmadetailoredrecommenda-tionsbasedonindividualneedsthatreduceduncertaintyaboutwhatanindividualneededtolearnnext.EnhancingorganizationallearningwithAIprovidedflexibilitytoman-agenecessarychangesduringanunanticipatedcrisis.
TechnologicalandRegulatoryUncertainty
Increasinglyfrequenttechnologyinnovationsleadtosignifi-cantstrategicandoperationaluncertainty.Adaptingsystemsoverandoveragaincanbeexhaustinganddisruptivetotech-nologistsandbusinessusersalike.JustwhencompanieshadbeguntounderstandhowtoincorporateAIuseintotheirbusinessstrategies,generativetoolsintroducedchangesthatrequiredareassessment.
(see“thestateOfaiinbusiness,”
page14.)
ToniaSideri,directoroftheAIandAnalyticsCenter
ofExcellenceatNovoNordisk,notesthat“technologyisevolvingfasterthanorganizationscanaddress.Combiningthatwiththehypearoundtechnology’spossibleeffectspullstheorganizationtodosomething.”Emergingtechnologiesbecome“apropellerfortheorganization,”sheobserves,evenifit’sinitiallyunclearwhatthebusinesscaseisorwhereinvestmentsshouldgo.Reassessingtechnologyinvestmentscanbebeneficial,eveniforganizationsdon’tendupadjustingtheirstrategiesbut,rather,reinforcethemtoworkwithinthenewtechnologicallandscape.
What’smore,technologyadoptioncanleadtomore,andmorecomplex,regulatoryscrutinyandcomplianceissues,raisingdifficultquestionsabouthowtonavigateincreas-inglyuncertainlegalenvironments.Surprisingly,usingAItoamplifyorganizationallearningdramaticallyimprovesacompany’sabilitytomanageuncertaintyfrombothtech-nologyandregulatorydisruptions.Comparedwithorga-nizationswithlimitedlearningcapabilities,AugmentedLearnersaresignificantlymorelikelytobepreparedtodeal
withuncertaintyfromtechnologydisruptions(86%versus49%)andregulatorydisruptions(79%versus48%).(seefigure5,page6.)
Learningtomanageuncertaintythatcomesfromadepen-denceonoldertechnologyandfromfuturewavesoftech-nologyisagrowingopportunityforAugmentedLearners.SheliaAnderson,CIOofAflacU.S.,shareshowtheinsurerusesgenerativeAItoreverse-engineercodeincertainleg-acysystems.Thisapproachisprojectedtoboostcurrentlevelsofsystemproductivitybyfiveto10timesbyrevealinghiddencomplexities.“Wehavebuiltinapproachestolearn-ingthatleverageAIandactuallyhelptoinformourorgani-zationonhowAIcanbeusedaswell,”Andersonsays.ShenotesthatAflacalsohasatechnologyincubatorthatusesAItoevaluatenewtechnologiesandrapidlyprototypelead-ingcandidatestoproveoutconceptsforthebusiness.Ifaprototypeappearedtobeviableforthebusiness,Andersonsays,“wewoulduseAItobuildafullbusinessmodelwiththereturnoninvestmentorproductivitysavingsorwhat-everbusinessvaluemetricwe’relookingtoachieve.”
Ontheregulatoryfront,largeorganizationswithglobaloperationscanuseAItonavigatecomplex,uncertainreg-ulatoryframeworksthatvaryfromonecountrytothenext.Forexample,ELC’sGottipatiobserves,“Fromacompanypointofview,youmakeoneproductanddistributeit.Butthen,iftherequirementsaredifferentfordifferentcountries,andalsocertainingredientsarelimitedincertaincountries,
LearningtoManageUncertainty,WithAI
7
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