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David Foster's avatar

Redesigning the entire enterprise from the top down around AI agents is most unlikely to work out well...although it would surely generate large amounts of consulting revenue.

Also: "McKinsey reuses their now-familiar gen-AI uplift estimate: $2.6 to $4.4 trillion of “value.”" This ignores the point that many of the financial benefits of AI are likely to be competed away...as is the case with other technologies. Warren Buffett mentioned that when Berkshire-Hathaway was still a textile company, he was told that the business would have a great future because automation in the field was advancing so fast. He observed that the automation could be purchased & implemented by his competitors as well as by himself, and the benefits of automation would likely accrue in the form of lower prices for consumers rather than higher margins for manufacturers.

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Jim Johnson's avatar

No one would mistake McKinsey for implementation experts...ever. Ignoring the McKinsey takedown, though, the ability to follow this plan is inversely correlated to the scale-based inertia and weight of the organization. AI presents a tremendous opportunity for smaller, faster businesses to compete in a way not previously possible. Also, right now, the way to future-proof is ROI. I strongly agree with the point regarding disposability. If it does not increase revenue, reduce cost, drive scaling efficiency, or increase CSAT measurably, forget it.

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