Fight, flight or freeze: What’s your response to the threat of GenAI?
Since the Generative AI explosion at the beginning of last year, digital industry has been grappling with the implications of such a significant technological disruption. With Global AI investment set to soar to more than $800 billion in 2030, businesses small and large will be faced with both opportunities and threats.
AI tools have the potential to completely transform the market landscape, displacing current market leaders and even leaving the biggest names struggling to stay relevant. The key to survival and success will be the ability to adapt quickly and leverage AI. Gartner found that 30% of GenAI projects are expected to be abandoned by 2025, yet only 7% of businesses feel they are meeting or exceeding their digital transformation targets. What’s a contributing factor to this gap?
As AI’s evolution continues at rapid pace, it’s not going to be perfect. We need to acknowledge both the potential and pitfalls in this phase – when it gets things right, and when it gets things wrong. A recent thinktank report even called for a system to record AI’s misuse and malfunction in order to learn from the technology and use it successfully. But we can’t sit around and wait for government and policymakers to act. Organizations need to apply their own guardrails and careful sense of judgment to truly reap the benefits of this technology.
When considering the threat, organizations typically respond in one of three ways: Fight, Flight, or Freeze.
VP of Technology, EMEA at CI&T.
Fight
Organizations in “Fight” mode are proactive in their approach to adopting GenAI. They recognize the transformative potential of GenAI and are committed to integrating it into their operations. In fact, four in five businesses expect AI to have a positive impact on their business, while three quarters have already started to use GenAI or plan to do so this year.
Successful organizations tend to take a highly coordinated and value-focused approach, setting up a dedicated GenAI taskforce to ensure every initiative aligns with broader strategic goals. This involves thorough planning, prioritization of high-impact areas, and proper resource allocation. Starting with small, focused experiments, allows them to learn quickly, gain initial traction, and demonstrate the technology’s value. This not only helps assess the return on investment but also communicates the value to stakeholders.
Organizations that struggle in the “Fight” mode often suffer from issues such as misaligned or disconnected leadership. Without a unified vision, different departments might pursue their own GenAI projects in an uncoordinated manner, leading to inefficiencies and wasted resources. Moreover, the lack of clear success metrics can result in ambiguity about the impact and value of these initiatives, making it challenging to justify investment.
Flight
In the “Flight” mode, organizations exhibit a more cautious or resistant attitude toward GenAI adoption. Some view GenAI as a distraction from their primary goals and objectives, fearing that it could divert resources and focus away from core activities. Others are skeptical about the potential value GenAI can add to their existing products or services, doubting the technology’s maturity or relevance to their specific industry.
Another common concern is the fear of job displacement. Employees may worry that the automation and efficiencies brought by GenAI could threaten job security. Additionally, some may dismiss GenAI as being overhyped, preferring to wait until the technology has been more widely used before investing in it. Finally, concerns about the risks associated with GenAI, including ethical considerations and the potential for misuse, can also lead to a ‘flight’ response.
While there is some validity to these concerns, if they amount to organizations walking away from actively exploring GenAI’s potential, then may be sabotaging their own future.
Freeze
Organizations in “Freeze” mode are those that, despite recognizing the potential value of GenAI, find themselves unable to move forward due to various internal barriers. Many organizations fall into this category for several reasons.
Some organizations might be in the midst of other critical transformation initiatives that take precedence, such as becoming more lean or agile, or shifting to a product-led or data-driven approach.
Additionally, organizational silos and the use of outdated legacy technology can hinder progress. Fragmentation between teams can result in duplicated efforts, inconsistent strategies, and a lack of shared understanding of GenAI’s benefits, while old IT infrastructure would necessitate costly and time-consuming upgrades to accommodate GenAI.
Legal and compliance teams may also impose strict guidelines or outright bans on exploring GenAI due to concerns over data privacy, intellectual property, or regulatory compliance.
Setting an effective action plan
With these response modalities in mind and the assumption that action is needed, what do organizations need to do to transition into action mode in a way that generates value for the organization?
To effectively engage with GenAI, organizations should start by educating and aligning executive stakeholders on its potential and risks. Establishing a centralised team to manage GenAI initiatives is crucial. Beginning with small, focused pilot projects can demonstrate value and feasibility. Implementing metrics to track and showcase the impact of GenAI efforts can help secure greater stakeholder buy-in.
By addressing these initial steps, organizations can transition into an effective action plan to harness GenAI’s transformative potential.
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Since the Generative AI explosion at the beginning of last year, digital industry has been grappling with the implications of such a significant technological disruption. With Global AI investment set to soar to more than $800 billion in 2030, businesses small and large will be faced with both opportunities and…
