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> "You actually have to be dynamic, iterative, and transparent throughout the whole thing. And you need both C-level people and operational people to make this
by smarm52 2y ago
> "You actually have to be dynamic, iterative, and transparent throughout the whole thing. And you need both C-level people and operational people to make this work ... The C-suite has to make choices to fail fast and fail cheaply."
Interesting. This approach isn't compatible with how power function in a traditional hierarchical company. If they're to be believed the "issue" with AI adoption and ROI may not be the technology, but how it's managed.
Edit: Actually, giving it some thought, I wonder if this might put some selective pressure on more traditional businesses, in favour of less hierarchical organizational practices.
Startups tend to be more democratic, as most or the entire population associated with the organization is integral to its function. It's only after expanding and organizing in such a way that power is concentrated in a few hands that businesses start to fail in predictable ways.
In the article they talked about improving some of their processes by ~80% or more, with the help of AI. Then, as traditional businesses seem to be having some issue with implementing AI (as it may not be compatible with their organizational patterns), then it may be startups or non-traditional organizations that can really reap the benefit of AI.
If that's the case, then those non-traditional businesses may have a distinct advantage over larger businesses, given how large the gains can be realized viz AI. And so that would seem to put some selective pressure (i.e., evolutionary pressure) on larger organizations that use this naive hierarchical management style.
It will be interesting to see if larger organizations will face some stiff competition from smaller organizations that can "fail fast" enough to make AI work. But, it will probably just be the tried and true pattern of larger organizations failing to innovate, and instead buying the more successful organizations to strip them for parts; See Broadcom and VMWare for a recent example.
Investors favour a hierarchical organizational pattern as it makes the organizations easy to control. And so, if this new "pressure" is realized, it will be interesting to see what they'll do. Control is very important for these people, so as to realize a profit that they can easily extract from their investments, and so they might resist the "pressure" to move toward a different style of management. But it remains to be seen if the benefits of implementing AI in these non-traditional businesses outweigh the power wielded by investors and their hoarded wealth. Will they eventually bow to the inevitable and implement new organizational patterns? Or will they throw money at the problem to try to make it go away? I favour the second possibility, as that's what they usually do. But as with other shifts in the way things are done, I think they'll fail at shoveling against the tide, and something new might come to pass.
De Mesquita, B. B., Smith, A., Siverson, R. M., & Morrow, J. D. (2005). The logic of political survival. MIT press.