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The organizations that will benefit most from AI adoption

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Summary

This article discusses the importance of investing in complementary assets to reap the full benefit of AI technology. The article examines a historical case study of a manufacturing firm's switch from steam power to electricity to illustrate one example of the importance of investing in complementary assets when adopting a new technology. Additionally, the article provides advice on how to identify and incorporate investments in complementary assets into hiring and upskilling strategies. The article also looks at research that has attempted to map AI capabilities onto existing human capabilities to determine which occupations and industries are most exposed to AI. The article concludes by offering advice to business leaders on assessing their maturity curve for AI adoption.

Q&As

What is AI classified as by future-of-work researchers?
AI is classified as a general-purpose technology by future-of-work researchers.

What are the three categories of complementary assets needed for AI adoption?
The three categories of complementary assets needed for AI adoption are human capital, physical capital, and digital capital.

What industries are most exposed to advances in language modeling?
The industries most exposed to advances in language modeling are legal services, securities, commodities, and investment industries.

What advice does Robert Seamans give to business leaders trying to assess their AI maturity?
Robert Seamans advises business leaders to implement the new technology in one business unit, or one part of the firm, or one part of the factory, and work at it until they've got it right, and then scale across the rest of the firm. He also suggests that firms have an internal tech transfer office to help business unit leaders see what works in one part of the firm and then try to implement it in other parts of the firm.

What are the costs associated with investing in AI?
The costs associated with investing in AI are at least the cost of purchasing AI, but it could be a multiple of that depending on the investments that need to be made in complementary assets.

AI Comments

👍 This article provides a comprehensive overview of the importance of investing in complementary assets to make the most of AI adoption. It provides an excellent case study to understand the concept and offers practical advice on how to incorporate investments into the hiring and upskilling process.

👎 This article could have gone into more detail on the potential impact of AI adoption on different occupations and industries. It relies heavily on case studies and anecdotal evidence, which could benefit from more empirical evidence.

AI Discussion

Me: It's about the organizations that will benefit most from AI adoption and how they should invest in complementary assets to make the most of it. The article also talks about the implications of AI adoption and how it will affect existing jobs and the creation of new jobs. It's an interesting read.

Friend: That sounds fascinating! It definitely sounds like something that's worth looking into. What are the implications for businesses?

Me: Well, the article suggests that businesses should invest in complementary assets to support AI adoption. This could mean investing in software, people with AI-related skills, and training existing employees to use the new technologies. It also suggests that businesses should think about their long-term strategy for hiring and upskilling, as this will help to ensure that they have the right skills to take advantage of AI. Finally, the article suggests that businesses should look into how their existing occupations and industries are exposed to AI, as this could help them to identify which jobs may be at risk of being replaced by AI.

Action items

Research the industries that are most exposed to AI and LLMs to determine if your organization should invest in AI.
Develop a long-term strategy for hiring and upskilling employees to ensure they have the skills needed to take advantage of AI.
Investigate the cost of investing in AI and complementary assets to ensure your organization is prepared to make the necessary investments.

Technical terms

Sponsored Content: Content that has been paid for by an advertiser.
Pro: Short for professional, usually referring to someone who is an expert in their field.
Interview: A conversation between two or more people, usually conducted by a journalist or researcher, in order to gather information.
AI: Artificial Intelligence, a type of technology that can be used to automate tasks and make decisions.
Charter: A company that provides services related to the future of work.
General-Purpose Technology: A type of technology that is defined by its ubiquity, its potential to be improved upon over time, and its ability to give rise to other innovations.
Human Capital: The knowledge, skills, and abilities of a person or group of people.
Physical Capital: Tangible assets such as buildings, equipment, and machinery.
Digital Capital: Digital assets such as software, data, and networks.
Language Modeling: A type of artificial intelligence that uses natural language processing to generate text.
LLMs: Long-Short Term Memory models, a type of language modeling.