Wharton professor Ethan Mollick says companies must make organizational changes if they want to benefit from AI
Briefly

Professor Ethan Mollick emphasized at the MIT AI conference that to truly benefit from AI, organizations must first undergo significant internal transformations. "Until we change the organization, we won't get much benefit," he stated, suggesting that merely enabling individual use of AI tools won’t yield substantial productivity improvements. He advocates for a strategic reevaluation of how AI is integrated and suggests that companies must adapt their operational frameworks to align with the capabilities of artificial intelligence.
In his research, Mollick found that the way organizations have traditionally adopted new technologies needs to shift fundamentally with AI. "With AI, it's intelligence of a different source, but it's now intelligence deployable a different way," he noted, indicating that reliance on human judgment alone is no longer adequate. This statement underscores the necessity of reorganizing workflows to fully leverage AI's potential for efficiency and effectiveness in various business functions.
Mollick's study involving BCG consultants illustrates the varied impacts AI can have within organizational constructs. Consultants with access to AI tools performed significantly better on tasks well suited to AI’s capabilities, termed the 'jagged technological frontier.' Tasks falling within this frontier saw marked productivity gains, while those venturing outside it resulted in notable declines in accuracy—"19 percentage points less likely to produce correct solutions." This outcome highlights the importance of understanding AI's limitations while adapting organizational practices accordingly.
Read at Business Insider
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