I am passing this on from the Peter Diamandis newsletter. I don’t think I can link, but click the link on his name to go to his website and sign up. Diamandis sometimes climbs over-the-top optimistic. But that’s a great counter to the usual cynicism and negativity and dysfunctional thinking prevalent in today’s society.
Understanding artificial intelligence (called by Om Malik “augmented intelligence” and by others as neither artificial or intelligent) today requires a healthy dose of realistic thinking and perspective. I offer these thoughts as a counter to your usual AI hype.
Traditional companies are failing to implement AI effectively. Here are five principles to make the technology actually work for you…
1/ AI problems are rarely AI problems – they’re strategy problems disguised as technology problems. Most organizations fail at AI implementation not because they chose the wrong models or hired the wrong engineers, but because they never clearly defined what business problem they’re solving. They see competitors “using AI” and panic-buy solutions for problems they can’t articulate.
2/ Budget size is inversely correlated with AI success. The companies throwing millions at AI initiatives are systematically outperformed by teams running on shoestring budgets with clear mandates.
3/ The 10x rule is the only rule that matters for AI adoption. Anything less than a 10x improvement in speed, cost, or quality is organizational noise. Most AI projects deliver 20-30% improvements that get lost in measurement error and change management overhead.
4/ Competitive intelligence is your fastest path to AI advantage. While you’re debating whether to build or buy, your smartest competitors are already shipping AI-powered solutions.
5/ Pirates beat committees every time. The worst way to implement AI is through enterprise-wide initiatives with steering committees and governance frameworks. Instead, empower your teams from the ground up. Recent studies indicate some alarming news:
- 42% of executives say the process of adopting generative AI is tearing their company apart
- 41% of Millennial and Gen Z employees admit they’re sabotaging their company’s AI strategy
- What’s needed is to enable small teams, “pirate ships,” to move at startup speed (within enterprise contexts). Small teams are optimized to experiment and learn rather than aim for consensus. Give them a problem, a budget, and air cover, then get out of their way.
Here’s the key implementation insight: AI amplifies existing organizational capabilities (and dysfunctions).
