Generative AI is set to transform the business landscape, presenting managers with unique situations filled with unknowns, according to the Harvard Business Review.
Leaders face challenges, including predicting unpredictable outcomes while racing against the clock in fast-paced environments.
Rather than succumbing to fear or hype, authors Oguz A. Acar and Bob Bastian write, managers can adopt a structured approach to navigate these complexities, and recognizing and understanding these uncertainties is the first step.
AI uncertainties include:
- State uncertainty: Lack of information about AI’s current capabilities and future developments can complicate market predictions.
- Effect uncertainty: Narrow benchmarks and limited real-world testing make it difficult to assess AI’s potential impact on industries.
- Response uncertainty: Should we adopt AI technologies early or wait?
To navigate these uncertainties, the authors recommend, among other things, reflecting on past experiences to inform decision-making, anticipating future trends and customer needs through scenario planning, and engaging in active experimentation with AI technologies through pilot programs.
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