Innehållsförteckning för 13. March 2024 från I by IMD

I n late July 2022, Google fired Blake Lemoine for claiming that the AI technology being developed there was sentient. This incident caught my attention, evoking memories of the experiences documented with what we now recognize as the world's first chatbot, ELIZA. Developed by Joseph Weizenbaum at MIT in the mid-1960s, ELIZA engaged users in conversations, employing the technique of clientcentered therapy to reframe questions that were asked of it. Many who interacted with ELIZA reported feeling as though they were communicating with a sentient entity. Fast forward to November 2022, and we see the entire world experiencing this phenomenon of transference, where a generative AI encounter can evoke a sense of human connection. AI tools like ChatGPT have sparked more discussions about disruption and opportunity in the business world…

Suppose you are a business leader who has joined an executive education program. You've soaked up hours of ideas from professors and shared experiences with peers, supported by coaches and program managers. The course ends and you go back to your busy day job. Along the way, you think of many more questions you wish you'd asked. If only you could keep asking questions and get accurate and specific answers whenever needed. This scenario illustrates the challenges facing conventional education settings: the time constraints of the instructor and learner relevance. With the advent of GenAI, we saw the potential to allow participants to ask questions and get answers based on the collective expertise of our faculty and vast sources of information in their own language long after they'd left the…

3% visible data Mostly structured data in enterprise systems, such as: BI = Business intelligence CRM = Customer relationship management ERP = Enterprise resource planning 97% dark data E-Mails Documents Log files Images Sensor data Videos In the rapidly evolving landscape of technology, generative AI – as the latest ramification of the decades-long advances made in data analysis – stands out as a groundbreaking force, reshaping how businesses operate across various sectors. At its core, this innovation offers an unparalleled opportunity to harness the vast “hidden” reservoirs of data – documents, emails, images, and videos – that organizations have amassed over time. By leveraging generative AI in the form of large language models (LLMs), businesses are now unlocking valuable insights and knowledge previously concealed within this digital treasure trove. The…

[ Strategy ] Y ou might be familiar with Nike's Run Club app, a GPS-powered running companion that meticulously captures each stride as you exercise around your neighborhood. Beyond basic tracking, the app immerses users in the Nike running community through gamification, social integration, and live feeds. Celebratory achievements mark milestones, while run levels inspire more miles, transforming every run into a rewarding activity. Through this interaction, Nike collects user data, personalizing experiences and driving three times more spending from app users than guest customers. With over 100 million users, Nike Run Club exemplifies how gamification shapes engagement and market impact. Organizations have increasingly embraced gamification – the use of game design elements in non-game contexts – as a tool to engage with existing and prospective consumers. With the digital…

[ The art of business ] I by IMD: What is your theory for change and approach as an artist? BENJAMIN VON WONG: When we think of behavior change, we often think of inflection points – that moment when ice turns to water. But when we think about how we change as individuals, we think of it more along the line of trends – a gradual warming over time towards a concept, idea, or belief that eventually leads to a new routine, habit, or behavior. My work seeks to help lubricate that transition towards the inflection point. I create opportunities for conversations for those who have already changed their behavior and might want to convince their friends. I create moments of inspiration for those who are frustrated and burning out…

[ Coaching Corner ] THE CHALLENGE Keen to set ambitious targets that align with the organization's goals, Lyndsey is confident that the new team will deliver. But something is not working. Just a few months into the role, Lyndsey is dismayed that team members are systematically failing to reach their targets. With the new quarter looming, she is becoming anxious and unsure: leadership strategies that have worked well in the past don't seem to translate well to this new context. Moreover, Zoom calls with the team have become increasingly tense, with team members responding defensively to Lyndsey's criticism or shutting down entirely. Unsure of how to solve this but open to personal growth and change, Lyndsey seeks the support of an executive coach, keen to start a process of deep…

1. Elevate your perspective Don't get lost in the detail. Speak to the bigger picture and vision. 2. Look forward You must let your team know that you are aware of and have considered the risks and opportunities when you articulate decisions. 3. Anticipate impacts Strategic thinkers assess and communicate the outcomes of their decisions, including both intended and unforeseen scenarios. 4. Join the dots Strategic thinking involves making sense of a wide range of factors and trends, so make those connections when communicating decisions to show you are aware of all the angles. 5. Simplify the complicated Distill complex issues down to their essence to show you are in control of the subject. Use simple framing, such as strategic pillars to communicate your thinking. 6. Use analogies and metaphors…

[ The forecaster ] The importance of slowing down cannot be understated. To avoid the folly of forecasts (although this is why I write this column), we sometimes need to look back at how we got things wrong. The mania surrounding ChatGPT seems to spin executives into such a high octave that we forget that there was the same enthusiasm for blockchain and Bitcoin, Web3, and the Internet of Things. As George Santayana warned: “Those who cannot remember the past are condemned to repeat it.” It's true that one cannot wait until all the information is in and the data points are all clear. A choice needs to be made while time is on our side. But spinning faster doesn't necessarily mean progress. It could mean chaos. And the last…

[ In good company ] H igher education is one of America's most successful industries, serving three million students annually. Colleges and universities drive discovery and innovation, civilize young adults, and educate our future workforce. They are also shockingly expensive – you could buy a house or open a fast-food franchise for the cost of a four-year degree at a typical private college. Generative AI offers the potential to reduce significantly the cost structure and raise the productivity of higher education. Unlike earlier tech innovations that failed to gain traction, such as educational television and massive open online courses (MOOCs), GenAI can be engaging and customized – like always having a personal tutor. GenAI trained on a corpus of elite scholars offers an unprecedented opportunity: individual tutorials with Michael Porter,…

AMIT JOSHI: Before the hype around generative AI, Alibaba had applied traditional AI and machine learning in marketing for the longest time. Tell us about that journey. CHRIS TUNG: At Alibaba, we don't believe AI is helping the business; we believe AI is the business. We've been integrating AI and machine learning to define the best shopping experience for shoppers. For merchants, we have been leveraging AI and machine learning to build tools and systems to help merchants increase operation efficiency, reach their customers, and get the best transactional results possible. I can give you a few interesting examples. First, smart search and recommendations on Taobao – the largest e-commerce app in China that serves around one billion shoppers a year with over two billion SKUs on the platform. Based…

[ Integrating AI ] Educate yourself, keep up-to-date, and share your knowledge to exploit the potential that AI has to offer, writes Shelley Zalis There is a fear of the unknown, a fear of what is happening behind the scenes, of technology outpacing our thinking. Change always brings fear, and the high-speed evolution of AI has magnified that feeling. The key to staying abreast and in tune with any technological change is being part of it and leading it. This includes following updates, educating ourselves, sharing with others, and contributing to its development. The most well-informed person in the room will also be the least afraid. The most common concern I hear about AI is that it will take away jobs and reduce the need for human interaction. Is it…

GENERATIVE AI (GENAI) This can generate creative output, including text, images, music, videos, and code, based on a range of inputs, prompts, and data. LARGE LANGUAGE MODEL (LLM) A type of artificial intelligence system designed to understand, generate, and interact with human language by analyzing vast amounts of text data. ARTIFICIAL GENERAL INTELLIGENCE (AGI) A form of artificial intelligence that possesses the ability to understand, learn, and apply knowledge across a wide range of tasks at a level of competence comparable to, or exceeding, that of a human. MACHINE LEARNING Algorithms perform specific tasks without explicit instructions, instead relying on patterns and inferences derived from data to find patterns and predict future events. DEEP LEARNING A subset of machine learning that involves neural networks with many layers, enabling the modeling…

Did you know you can now create a GenAI App without a single line of code? OpenAI has released a tool that makes it possible to develop an app by simply talking to ChatGPT. Let me illustrate with my app, The Causal Mindset. Understanding the concept of causality – the relationship between cause and effect - is crucial for making informed decisions. In particular, understanding the concept of causality – the relationship between cause and effect – is vital in areas such as fighting climate change, our quest for happiness, and strategic decision-making. However, despite its obvious usefulness, few people are trained in causal inference, the academic discipline of connecting causes and consequences, leading to numerous abusive claims and costly mistakes for business. To make those cognitive tools available to…

AI revolutionizes business approaches to gamification by leveraging its predictive capabilities to enhance customer engagement through behavior analysis and goal alignment. Duolingo has partnered with OpenAI to integrate GPT-4 technology to improve the app's language learning experience. For example, a role-playing feature lets users interact with an AI persona, such as a barista in a Parisian café, which adapts to the needs and level of its human counterpart as they interact. For Singles Day, China's major shopping event on 11 November, Alibaba incorporated AI into its gamification initiatives, focusing on luxury consumers. The platform collaborated with luxury brands such as Gucci and Ralph Lauren to deliver personalized experiences for customers engaging with Tmall Luxury Pavilion. In February 2024, Google DeepMind unveiled Genie, the first generative interactive environment whereby playable worlds…

In Greek mythology, Eunomia, the goddess of good order, is said to have inspired the renowned Athens legislator Solon to transform the city into a model of good governance. She is said to have reminded Solon that legislation should serve the people, not the privileged few, leading him to introduce a new set of more humane laws. To-day, the supervisory board plays a similar role, holding management to account and ensuring that they follow legal and ethical standards that benefit shareholders and society. Increasingly, they have their work cut out. The Enron scandal in 2001, the problems that Boeing faced with its 737 Max plane around the turn of the current decade and, more recently, the collapse of Credit Suisse in March 2023 are all prominent examples of crises that…

[ In the mind‘s eye ] When we think about concessions in a business context, our minds might jump to a high-stakes negotiation where both sides haggle to seal a deal. As we delve deeper, however, it becomes clear that concession-making is not merely a transactional act but also a transformative skill for all employees with the potential to elevate relationships to new heights. Reciprocity, the unspoken rule of giving and taking, is central to concession-making. This behavior is not unique to humans but widespread across the animal kingdom. Capuchin monkeys, for example, demonstrate instances of reciprocal altruism. When one monkey shares food with another, the recipient often reciprocates later, enhancing social bonds within the group. Making concessions in everyday workplace interactions is a crucial part of fostering positive relationships…

[ Brain Circuits ] Let's start with an experiment. Click on the QR code to play the Mind Balance game before reading on. Attentional control has become more and more critical for leaders. Firstly, in today's digital world, we are bombarded by a wealth of information. As decision-making expert Herbert Simon stated in 1971: “A wealth of information creates a poverty of attention.” Secondly, jobs are becoming more diverse and heterogeneous, with leaders needing to switch focus more often and less time available for deep thought. Finally, the business environment increasingly involves ambiguous and novel problems with no clear solution, where leaders must focus intently to navigate complexity. The need for constant switching between tasks and the demands of the “attention economy” have been cited as factors in the recent…

[ PREVIEW ] The global creative industries are a hotbed of visionary innovation and unconventional thinking. There is much for the wider business community to learn from the way artists and their respective sectors are transforming the commerce of art and rising to the challenges of these turbulent times. In the June edition of I by IMD, we hear from a diverse host of creative minds to explore the largely untapped intersection between art and business, revealing practical insights and inspirational ideas to challenge how we think about leadership and the future of capitalism. In the meantime, join us online daily at ibyimd.org, where you will find articles, videos, podcasts and learning exercises that will spark conversation and help you and your teams excel. Scan the QR code to visit…

1. What is your personal motto? Be part of the conversation. 2. Name three traits that make a great business leader. Curiosity, courage, and humanity. 3. What experience had the greatest influence on your leadership style? Seeing myself on TV. 4. How do you balance your well-being, personal life, and leadership? By being meticulously organized. 5. What advice would you give to an aspiring CEO? Care more about the business than your colleagues. 6. What one factor will change your industry in the next five years, and why? Gender fluidity. As people become increasingly liberated from preconceived, archaic notions, this will have a major impact on design, communication, and service. 7. Name something that people might be surprised to learn about you. I am a history freak. 8. What talent would you like to have? I wish I…

AI is fast becoming an integral part of the operating system for organizations, governments, and society. With this rapid acceleration in adoption, far-reaching and unforeseen implications and negative consequences arise, often caused by a lack of responsible governance. We suggest that professionals leading AI strategies work with DE&I professionals to ensure human-centric principles are integrated into its use and upheld. HR is among the most frequently discussed areas of AI application. From aspiring to select the best candidate to ensuring the selected individual has the support required to reach their potential in ways that deliver on the organization's mission and goals, many processes and tasks will benefit from AI. We see, with increasing frequency, AI tools being deployed in candidate selection processes. For instance, large organizations such as Unilever have…

‘Dissecting complex social interactions to advise humans on decision-making is a formidable challenge for AI' HUMAN COMPATIBLE / STUART RUSSELL Given how fast things are moving forward, a book on AI published in 2019 may seem outdated. On the contrary – everyone interested in AI and needing an in-depth understanding should read this book. As well as discussing the benefits to be gained from AI, Russell also explains, in great detail and with clear examples, why our approach to AI today is not necessarily the best. His core question explores how we ensure machines remain beneficial to humans and addresses a fundamental challenge: increasingly intelligent machines that do what we ask but not what we intend. Russell starts by demystifying AI and clarifying its capabilities and boundaries. He argues that…

W hen we invented cars, we regulated traffic. Yet, over 25 years since the first recognizable social media site was created, we still don't have adequate tools to halt the spread of misinformation, disinformation, and other harmful content online – even though more people now use social media than own a car. The consequences of this global online “Wild West” have been, at times, devastating. In Myanmar, Facebook was accused of triggering an outbreak of ethnic violence, while in India, false rumors about child kidnappers went viral on WhatsApp, leading to a spate of deadly attacks. And with more than two billion people set to vote in elections in 2024, the stakes have never been higher. An IPSOS survey of 8,000 respondents from 16 countries where ballots will be held…

DUO DUO ORCHARD A mini-game integrated into Pinduoduo's e-commerce application that features individual virtual gardens for users. Each purchase made on Pinduoduo generates virtual droplets to nurture virtual fruit trees in the garden. Failure to use the droplets promptly results in other community members being allowed to steal them. Mature virtual trees can be exchanged for actual boxes of fruit delivered to the user's home address. Available in China. TENCENT MUSIC The music-streaming platform has introduced gamification to redefine the connection between artists and their fan communities. Instead of relying solely on conventional metrics like stream counts or downloads, Tencent Music evaluates artist rankings by considering the volume of microdonations received from fans, with the platform earning a commission from these contributions. Available in China. ANT FOREST A mini-game integrated…

[ CEO dialogue ] ‘We are all students of leadership, even if you're a leader'  TV Narendran Strong, resistant to wear and tear, and extremely versatile, steel is one of the world's toughest and most commonly used metals. In many ways, Tata Steel, the world's 10th largest maker of the commodity, embodies the very resilience and adaptability of its product. Founded over 100 years ago as one of the Tata Group companies established to help forge India's industrial revolution, Tata Steel has transformed itself from a relative minnow into a global player with $33bn in annual revenues and 65,000 employees in 26 countries. A major milestone was the acquisition in 2007 – a century after it was established – of European steelmaker Corus, which catapulted Tata Steel from 50th to…

Supply chain nightmares, pandemics, policymaking uncertainty, climate change, geopolitical and social upheaval, rapid technological innovation: these are just some of the unpredictable factors that executives must grapple with as they strive to make the best decisions for their companies, investors, employees, and society. How leaders respond to these challenges defines the fate of their businesses. Those who manage to cut through the confusion give their organizations the best chance of surviving and thriving in an age of unprecedented turbulence. Those who fail to do so leave their ships at the mercy of the storm. But how can you chart a clear and well-founded course when such chaos abounds? I believe there is a way to, at least, put yourself in with the best shot of success: strategic thinking. Thankfully, rather…