A Few Ways AI WILL Disrupt Most Business Models (And What You Can Do About It)
AI is changing our world and our businesses fast and there is no sign of this technology slowing down.
From enriching, analyzing, activating, and optimizing our data to replacing entry-level positions and jobs, AI is disrupting most business models.
After all, billionaires are fighting over who has control over it, and most companies, especially tech companies, are creating large budgets for it at the expense of lay-offs and reprioritization of assets. Heck, let’s look at the stock market, Nvidia’s stock is skyrocketing since it’s powering most of these AI developments.
Let’s say it like it is — AI is the next disruptive technology. But, that doesn’t mean it has to disrupt you.
In today’s blog, I’ll be covering some hard-hitting questions you can ask so you aren’t left in the metaphorical or literal dust.
Learn From the Past
When there are transformation shifts in technology, very few people take notice and do anything about it.
Take Kodak for example. Kodak’s photo business quickly realized that they really didn’t stand a chance once smartphones entered the picture.
Remember Radio Shack? They rapidly faced an environment where almost everything they sold was available on an iPhone. Rest in peace.
Blockbuster, the go-to place for families on a Friday night in the 90s and 2000s went belly up as soon as Netflix revolutionized our world through streaming.
Heck, newspapers are still scrambling as they deal with the ongoing effects of the deconstruction that has shredded ads and journalism on printed paper.
All of these examples missed the technology shifts of their time. This is why we can’t ignore AI and overlook its transformative power. Or, think it will simply go away. (Newsflash, it won’t.)
AI will likely have a more immediate impact, but there are still plenty of things and questions you can ask to mitigate these intrusions.
Three Critical Questions for Business Leaders
You need to proactively address key questions regarding AI adoption to stay ahead of the curve, but how do you know where to begin?
After all, there are a ton of questions, that one can ask. With such a transformative technology like generative AI, most sales tech professionals like you are running in circles trying to figure out how not to end up like any of the aforementioned companies.
Lucky for you, I’ve done the dirty work. Yeah, Yeah, you’re welcome.
1. Gains Through Granularity
Question to ask:
What opportunities or threats emerge as we scale the complexity by which we (or our competitors) manage every variable that drives EBITDA?
Right now, most customers expect you to read their minds. And that is what makes some companies have a competitive advantage.
For example, Netflix’s recommendation engine is a prime example of anticipating a customer’s need (i.e. something to watch) before they can even think of asking the question themselves.
In a nutshell, harness AI to anticipate customer needs and optimize operations and you’ll be in the driver’s seat.
2. Radical Cost Transformation
Questions to ask:
Will AI change your cost structure significantly enough to put pressure on your business model and pricing approach?
Will you be moving towards software economics of higher fixed costs and much lower variable costs?
AI's ability to enhance productivity and streamline operations can lead to significant cost savings and operational efficiencies, as seen in industries like consulting and law.
In fact, a recent study by Harvard Business School and BCG tested the productivity of consultants using AI tools. It found that “compared to workers without AI access, those who used GPT-4 completed on average 12.2% more tasks, 25.1% quicker.”
In the case of consultants, this means you should be able to hire (and pay) fewer consultants who use AI and you’ll get a higher more valuable output. While I don’t think it’s a zero-sum game or a straight one-to-one trade, there is something here to pay attention to and focus on.
3. Obsolescence
Question to ask:
Can AI make your core product and offering obsolete?
I know I keep bringing up Kodak, but they are a prime example of what happens when you don’t face disruptive technology head-on. They were displaced when smartphones came on the scene.
AI has the potential to render traditional products and services obsolete. Full stop.
Meaning you must assess the impact of AI on their core offerings and adapt accordingly.
Complacency Has No Place Here
The consequences of complacency in the face of disruptive innovation are rampant as many sales tech professionals fail to adapt to technological shifts due to a lack of foresight and resistance to change.
Don’t get me wrong, change is hard, especially when you are making a profit. And yet, to keep making a profit and strides in your career, you have to stay adaptable and want to change. And I mean really want to change.
If you don’t, then you can bet on things not working out.
What’s Next?
Do you need more support using these questions? Or do you want more guidance and support on how to stay ahead of AI and its disruptive trends? Why not a place for both?
That’s why I have my Patreon.
But don’t you worry, I know that everyone doesn’t have the budget for another monthly membership —so y’all know I won’t leave you out to dry.
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