absorb.md

Ethan Mollick

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Rethinking Strategy and Organizational Design in the AI Era

AI is not merely a tool for efficiency; it is a fundamental shift that necessitates a complete re-evaluation of how organizations operate. Understanding AI as a “human technology” – akin to having access to thousands of highly skilled analysts – requires a move away from traditional software-centric views and towards blending human and AI capabilities. Organizations must proactively experiment and redesign their processes to leverage AI's potential for abundance, rather than solely focusing on cost reduction, to maintain a competitive advantage.