The Gen AI Playbook for Organizations
Leaders can’t afford to take a “wait and see” approach to adopting generative AI. They need a plan for applying it differently than others in the value chain, say the authors.
In this article they introduce a framework for thinking about gen AI strategically and offer practical advice on how to apply gen AI to the tasks composing jobs.
The Framework
The framework focuses on two factors: the cost of errors and the type of knowledge required.
- If an error in carrying out a task would lead to serious harm, financial loss, or reputational damage, firms must be cautious about employing gen AI to perform it without human oversight.
- Tasks that rely on explicit data (information that can be captured and processed) are well suited for gen AI.
- But other tasks are fundamentally harder for it to perform because they involve not just retrieving information but also applying tacit knowledge: empathy, ethical reasoning, intuition, and contextual judgment.
Leaders need a plan for applying gen AI differently than others in the value chain.
Author’s summary: A framework for strategic gen AI adoption.