{"id":11074,"date":"2020-11-09T06:34:40","date_gmt":"2020-11-09T06:34:40","guid":{"rendered":"https:\/\/www.experfy.com\/blog\/?p=11074"},"modified":"2023-10-09T17:58:18","modified_gmt":"2023-10-09T17:58:18","slug":"ai-factory-new-digital-operating-model","status":"publish","type":"post","link":"https:\/\/www.experfy.com\/blog\/ai-ml\/ai-factory-new-digital-operating-model\/","title":{"rendered":"The AI Factory: A New Kind of Digital Operating Model"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"11074\" class=\"elementor elementor-11074\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"has_eae_slider elementor-section elementor-top-section elementor-element elementor-element-2a706589 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2a706589\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"has_eae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-782ce193\" data-id=\"782ce193\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"has_eae_slider elementor-section elementor-top-section elementor-element elementor-element-891ea7a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"891ea7a\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"has_eae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-e35fbfa\" data-id=\"e35fbfa\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a023bbb elementor-widget elementor-widget-text-editor\" data-id=\"a023bbb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>\u201cWhether you\u2019re leading a digital start-up or working to revamp a traditional enterprise, it\u2019s essential to understand the revolutionary impact AI has on operations, strategy, and competition,\u201d wrote Harvard professors <a href=\"https:\/\/www.hbs.edu\/faculty\/Pages\/profile.aspx?facId=6482\" target=\"_blank\" rel=\"noreferrer noopener\" class=\"broken_link\"> Marco Iansiti<\/a>and <a href=\"https:\/\/www.hbs.edu\/faculty\/Pages\/profile.aspx?facId=240491&amp;click=bestbet\" target=\"_blank\" rel=\"noreferrer noopener\" class=\"broken_link\">Karim Lakhani<\/a> in \u201c<a href=\"https:\/\/hbr.org\/2020\/01\/competing-in-the-age-of-ai\" target=\"_blank\" rel=\"noreferrer noopener\">Competing in the Age of AI<\/a>\u201d, a recently published article in the <em>Harvard Business Review<\/em> (<em>HBR<\/em>).\u00a0 Earlier this year, they also published <a href=\"https:\/\/www.amazon.com\/Competing-Age-AI-Leadership-Algorithms\/dp\/1633697622\/ref=sr_1_2?gclid=CjwKCAiA-vLyBRBWEiwAzOkGVDZWEbi4XRLTZ-NpP9KrU91c3qeGBUC6bQmgl7eDiPvJ9044AIy09BoCXHsQAvD_BwE&amp;amp;hvadid=384294111304&amp;amp;hvdev=c&amp;amp;hvlocphy=9003439&amp;amp;hvnetw=g&amp;amp;hvqmt=b&amp;amp;hvrand=6644045034952027527&amp;amp;hvtargid=kwd-828909153353&amp;amp;hydadcr=21298_10155333&amp;amp;keywords=competing+in+the+age+of+ai&amp;amp;qid=1583149932&amp;amp;sr=8-2\" target=\"_blank\" rel=\"noreferrer noopener\" ;a \/a>  of the same title, which expands on the ideas in the article and illustrates them with a number of concrete use cases.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7709c3e elementor-widget elementor-widget-text-editor\" data-id=\"7709c3e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The age of AI is being ushered by the emergence of a new kind of digital firm.\u00a0 Rather than just relying on traditional business processes operated by its workers, these firms are leveraging software and data-driven algorithms to eliminate traditional constraints and transform the rules of competition.\u00a0 Managers and engineers are responsible for the design of the new AI-based operational systems, but the system then runs the operations pretty much on its own.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b3082e5 elementor-widget elementor-widget-text-editor\" data-id=\"b3082e5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>\u201cAt the core of the new firm is a decision factory &#8211; what we call the <em>AI factory,<\/em>\u201d note the authors&lt;em&gt;.\u00a0 <\/em>\u201c[T]he AI factory treats decision-making as a science.\u00a0 Analytics systematically convert internal and external data into predictions, insights, and choices, which in turn guide and automate operational workflows\u2026\u00a0 As digital networks and algorithms are woven into the fabric of firms, industries begin to function differently and the lines between them blur.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-828fe73 elementor-widget elementor-widget-text-editor\" data-id=\"828fe73\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The Industrial Revolution transformed the economy by developing a scalable, repeatable approach to manufacturing.\u00a0 The AI factory is now driving another fundamental transformation by industrializing the data gathering, decision making, and overall digital operations of 21st century firms.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"has_eae_slider elementor-section elementor-top-section elementor-element elementor-element-3c922bc elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"3c922bc\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"has_eae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-58a09cb\" data-id=\"58a09cb\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-8e556a8 elementor-widget elementor-widget-heading\" data-id=\"8e556a8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">The AI factory involves four key components:<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"has_eae_slider elementor-section elementor-top-section elementor-element elementor-element-b7aa518 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b7aa518\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"has_eae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-329cdc5\" data-id=\"329cdc5\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-33cac7a elementor-widget elementor-widget-text-editor\" data-id=\"33cac7a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><\/p>\n<p><ul class=\"wp-block-list\"><\/p>\n<p><li><em>Data pipeline &#8211;<\/em> the process which systematically gathers, cleans, integrates, and safeguards data;<\/li><\/p>\n<p><li><em>Algorithm development<\/em>, &#8211; the component which generate predictions about the future states of the business and drives its most critical operating activities;<\/li><\/p>\n<p><li><em>Experimentation platform<\/em> &#8211; the mechanism on which predictions are tested to ensure that they will have the intended effect; and<\/li><\/p>\n<p><li><em>Software infrastructure<\/em>, the systems that embed these various components in software and connect it as needed to the appropriate internal and external users.<\/li><\/p>\n<p><\/ul><\/p>\n<p><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"has_eae_slider elementor-section elementor-top-section elementor-element elementor-element-91c52a8 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"91c52a8\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"has_eae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-da25820\" data-id=\"da25820\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1a989e8 elementor-widget elementor-widget-text-editor\" data-id=\"1a989e8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Scale, scope, and learning are generally considered the key drivers of a firm\u2019s performance, helping them achieve higher levels of production and lower units costs.\u00a0 But scale inevitably reaches a point of diminishing returns when relying on traditional operating models based on carefully defined processes that require human labor and management decisions. Reinventing firms around<a href=\"https:\/\/www.experfy.com\/blog\/bigdata-cloud\/data-driven-think-again\/\" target=\"_blank\" rel=\"noreferrer noopener\">data-driven<\/a> AI algorithms removes the traditional constraints that have long restricted their growth, giving them a significant edge over competitors.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-01d89b8 elementor-widget elementor-widget-text-editor\" data-id=\"01d89b8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>\u201cAfter hundreds of years of incremental improvements to the industrial model, the digital firm is now radically changing the scale, scope, and learning paradigm.\u00a0 AI-driven processes can be scaled up much more rapidly than traditional processes can, allow for much greater scope because they can easily be connected with other digitized businesses, and create incredibly powerful opportunities for learning and improvement &#8211; like the ability to produce ever more accurate and sophisticated customer-behavior models and then tailor services accordingly.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-295d677 elementor-widget elementor-widget-text-editor\" data-id=\"295d677\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>\u201cOddly enough, the AI that can drive the explosive growth of a digital firm often isn\u2019t even all that sophisticated.\u00a0 To bring about dramatic change, AI doesn\u2019t need to be the stuff of science fiction &#8211; indistinguishable from human behavior or simulating human reasoning\u2026\u00a0 You need only a computer system to be able to perform tasks traditionally handled by people.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"has_eae_slider elementor-section elementor-top-section elementor-element elementor-element-39294c0 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"39294c0\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"has_eae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9a13514\" data-id=\"9a13514\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-507387f elementor-widget elementor-widget-text-editor\" data-id=\"507387f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The book discusses some of the radical changes made possible by removing the limits on scale, scope and learning.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a6ae2dd elementor-widget elementor-widget-text-editor\" data-id=\"a6ae2dd\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The underlying architecture of a firm is determined by its <em>business model<\/em> and its <em>operating model<\/em>.\u00a0 The business model encompasses the overall strategy of the firm, including how it seeks to differentiate itself from competitors by monetizing its unique set of goods or services.\u00a0 The operating model includes the systems, processes and other capabilities that enable the firm to deliver goods and services to its customers.\u00a0 \u201cWhereas the business model creates a goal for value creation and capture, the operating model is the plan to get it done.\u00a0 As such, the operating model is crucial in shaping the actual value of the firm.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5fa8eab elementor-widget elementor-widget-text-editor\" data-id=\"5fa8eab\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The operating model is the ultimate constraint to achieving the firm\u2019s potential value.\u00a0 Operating models are often quite complex, encompassing the activities of thousands of people, lots of processes, advanced technologies and millions of lines of code.\u00a0 But ultimately, the goals of the operating model are relatively straightforward: deliver value at &lt;em&gt;scale<\/em>, achieve sufficient <em>scope<\/em>, and continuously evolve by engaging in sufficient <em>learning<\/em>.\u00a0 Let me briefly summarize the authors\u2019 arguments.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c33887a elementor-widget elementor-widget-text-editor\" data-id=\"c33887a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Scale<\/em> is all about designing an operating model to deliver as much value to as many customers as possible at the lowest cost.\u00a0 \u201cClassic cases of improving scale involve efficiently increasing production volume or the number of customers served in, say, car production or fast food restaurants.\u00a0 Other examples may involve delivering products of increasing complexity in, say, completing a corporate merger or building an airport.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-268d855 elementor-widget elementor-widget-text-editor\" data-id=\"268d855\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Scope<\/em> is defined as the range of activities the firm performs, such as the variety of products and services it offers its customers.\u00a0 \u201cSome assets and capabilities can help an organization reach economies across diverse kinds of businesses\u2026\u00a0 With efficiencies of scope, firms can create and deliver a variety of goods and services efficiently and consistently.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f45dfb6 elementor-widget elementor-widget-text-editor\" data-id=\"f45dfb6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Learning<\/em> drives the continuous improvements that increase operating performance over time, as well as the innovations necessary to develop new products and services.\u00a0 \u201cIn recent years, the focus on learning and innovation has increased across the board to deal with threats and capitalize on opportunities.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8f62a59 elementor-widget elementor-widget-text-editor\" data-id=\"8f62a59\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Digital firms are now radically changing the scale, scope, and learning paradigms by deploying a fundamentally new kind of operating model.\u00a0 \u201cAI-driven processes can be scaled up much more rapidly than traditional processes can, allow for much greater scope because they can easily be connected with other digitized businesses, and create incredibly powerful opportunities for learning and improvement &#8211; like the ability to produce ever more accurate and sophisticated customer-behavior models and then tailor services accordingly.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"has_eae_slider elementor-section elementor-top-section elementor-element elementor-element-43bd879 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"43bd879\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"has_eae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-c513ff2\" data-id=\"c513ff2\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f44ed3f elementor-widget elementor-widget-heading\" data-id=\"f44ed3f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">The transition from traditional firm to AI-driven organization requires a holistic effort guided by five key principles:<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"has_eae_slider elementor-section elementor-top-section elementor-element elementor-element-7ab96df elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7ab96df\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"has_eae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-8ece578\" data-id=\"8ece578\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-628006e elementor-widget elementor-widget-text-editor\" data-id=\"628006e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><\/p>\n<p><ul class=\"wp-block-list\"><\/p>\n<p><li><em>One strategy<\/em> &#8211; Rearchitecting a firm\u2019s operating model implies rebuilding each business unit around a new, integrated foundation of data, algorithms, and software;<\/li><\/p>\n<p><li><em>A clear architecture &#8211; <\/em>Data assets need to be integrated across the firm\u2019s functions and applications to maximize their impact;<\/li><\/p>\n<p><li><em>The right capabilities &#8211; <\/em>Rearchitecting the firm\u2019s operating model will take time and require a small number of highly motivated, knowledgeable people;<\/li><\/p>\n<p><li><em>An agile \u201cproduct\u201d focus &#8211; <\/em>Transforming traditional processes into an AI-centric operating model requires a product-focused mentality and a deep understanding of the new use cases being enabled; and<\/li><\/p>\n<p><li><em>Multidisciplinary governance &#8211; <\/em>Such a complex technical and organizational transformation requires a well though-out collaboration across the firm\u2019s disparate disciplines and functions.<\/li><\/p>\n<p><\/ul><\/p>\n<p><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"has_eae_slider elementor-section elementor-top-section elementor-element elementor-element-d268a51 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"d268a51\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"has_eae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0c898f1\" data-id=\"0c898f1\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4c781ba elementor-widget elementor-widget-text-editor\" data-id=\"4c781ba\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Finally, Iansiti and Lakhami warn that \u201cDigital scale, scope, and learning create a slew of new challenges &#8211; not just privacy and cybersecurity problems, but social turbulence resulting from market concentration, dislocations, and increased inequality.\u00a0 The institutions designed to keep an eye on business &#8211; regulatory bodies, for example &#8211; are struggling to keep up with all the rapid change.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-20981da elementor-widget elementor-widget-text-editor\" data-id=\"20981da\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>\u201cIn an AI-driven world, once an offering\u2019s fit with a market is ensured, user numbers, engagement, and revenues can skyrocket.&nbsp; Yet it\u2019s increasingly obvious that unconstrained growth is dangerous.&nbsp; The potential for businesses that embrace digital operating models is huge, but the capacity to inflict widespread harm needs to be explicitly considered.&nbsp; Navigating these opportunities and threats will be a real test of leadership for both businesses and public institutions.\u201d<br><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>At the core of the new firm is a decision factory &#8211; the AI factory that treats decision-making as a science.  Analytics systematically convert internal and external data into predictions, insights, and choices, which in turn guide and automate operational workflows.<\/p>\n","protected":false},"author":612,"featured_media":11075,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[183],"tags":[226,498,205],"ppma_author":[3320],"class_list":["post-11074","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ai-ml","tag-ai","tag-automate-processes","tag-data"],"authors":[{"term_id":3320,"user_id":612,"is_guest":0,"slug":"irving-wladawsky-berger","display_name":"Irving Wladawsky-Berger","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&r=g","user_url":"","last_name":"Wladawsky-Berger","first_name":"Irving","job_title":"","description":"Irving Wladawsky-Berger, a Guest Columnist at WSJ CIO Journal, is Research Affiliate at MIT Sloan School of Management, Adjunct Professor at Imperial College, London, and Chairman Advisory Board at r4 Technologies."}],"_links":{"self":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/11074","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/users\/612"}],"replies":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/comments?post=11074"}],"version-history":[{"count":5,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/11074\/revisions"}],"predecessor-version":[{"id":33344,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/11074\/revisions\/33344"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/media\/11075"}],"wp:attachment":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/media?parent=11074"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/categories?post=11074"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/tags?post=11074"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/ppma_author?post=11074"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}