Differing approaches to scoping out the application of genAI (generative artificial intelligence) are emerging in the business world, but there is broad agreement among experts that the technology has yet to produce the major disruption many observers predicted.

In a special webinar hosted by Board Agenda, academics and advisers explored the state of AI readiness among companies.

Julian Birkinshaw, former professor at London Business School and now dean at Ivey Business School in Canada, favours “low risk” experimentation with AI to explore how it fits into existing business processes.

Meanwhile, Maria Santacaterina, chief executive of Santacaterina Consulting and author of the book Adaptive Resilience, favours a “holistic” approach where companies consider fundamental questions before implementing the new technology.

Is ‘FOMO’ a driver?

Fellow panellist, Shefaly Yogendra, a non-executive director and expert in decision making, said company leaders should consider carefully why they need AI.

“I have advised a CEO who had to be asked that question and, in a confidential setting, said, ‘I actually experience FOMO [fear of missing out]. We are the only people, it seems, not talking about it’.

“Then we were able to have a much better conversation about what is the purpose [of AI],” she said.

“If you’re driven by FOMO, maybe you need to have a sit down and think about why that is the case.”

Julian Birkinshaw says experimenting is the key to finding a good application of genAI at a time when the “hype is huge” and “reality a little bit more nuanced”.

“My simple advice at the moment… is you’ve got to experiment, you’ve got to experiment in low risk ways, within boxes, within functions, to see where the biggest opportunities are.”

For Birkinshaw, genAI has not yet proved to be a disrupting force, more a technology “sustaining” existing business. He says his observations indicate it may have changed individual productivity, but shows little sign of producing the much vaunted benefits at the organisational or economy level.

The big picture

For Maria Santacaterina, genAI is about asking foundational questions.

“You need to take a really big step back and look at the big picture and holistically examine where the gaps are in potential capabilities if you are going to implement it [AI] in your organisation.”

She adds: “We have lots of legacy systems if you’re a large organisation. Before you embark upon agentic AI, or any form of generative AI or LLM-based transformation, you really need to understand what the implications are.”

Shefaly Yogendra highlighted some emerging risks with genAI and automation, such as the loss of entry level jobs, or reducing the base of organisational pyramids. She argues that the erosion of junior roles should provoke boards into asking what their “goal” is in implementing AI.

“If you automate away a lot of the bottom layer of the organisation, you’re at risk of toppling that pyramid because the base isn’t big enough.

“At the same time, how do you know that you’re capturing everything that automatable?

“The balance between talent in the organisation and the shape of the future organisation is an interesting question, which is not easy to answer.”

The webinar, Enterprise AI Readiness: Where Does Your Business Stand?, is available to watch on demand. See the full webinar below.