Competing in the Age of AI: Strategy and Leadership When Algorithms and Networks Run the World by Marco Iansiti, Karim R. Lakhani

In Competing in the Age of AI: Strategy and Leadership When Algorithms and Networks Run the World, Harvard Business School professor Marco Iansiti offers a comprehensive discussion of the new reality brought about by artificial intelligence (AI) and its implications for business strategy and leadership. He examines both the opportunities and threats of AI, discussing how companies can best position themselves to thrive in the rapidly changing AI-driven world.

The book opens with a discussion of how the digital revolution has disrupted existing business models and made it difficult for companies to find success with the traditional business practices they were used to. Iansiti stresses the importance of understanding the relationship between humans, algorithms, and networks that underlie these changes and provides an overview of the concept of AI and its growing impact. He then goes on to outline a strategic framework that can help organizations capitalize on AI-driven opportunities, as well as a set of leadership principles to guide them in making the necessary decisions to navigate through the rapidly-evolving world of AI.

Beyond the strategy framework, Iansiti goes on to discuss the ‘ecosystem’ of AI, outlining the governance structures, incentives and alignment strategies needed for an organization to effectively deploy and realize the benefits of AI. He also examines trends in AI, such as ‘conversational AI’, that could prove disruptive to existing structures and outlines how companies can both identify and anticipate such changes in order to be prepared.

Throughout the book, Iansiti insists that AI cannot simply be managed as an “add on” but instead should be integrated into the core of companies’ operations. He advocates that businesses take an “AI-first” approach, where AI is seen and treated as a first-class asset in the company and its adoption reflects a strategic understanding of how AI can be leveraged to create new business models and opportunities.

Finally, Iansiti discusses potential pitfalls of AI adoption and provides guidelines for avoiding them. He cautions companies against cutting corners when executing AI strategies, stressing the need for robust governance and rigorous ethical considerations when dealing with data and AI-initiated activities. He also looks at the role of trust in building trust in AI systems, for if business and customers do not trust the technology it will not be able to fully deliver on its potential.

Competing in the Age of AI provides business leaders and strategists with the information and tools needed to identify, deploy, and capitalize on the opportunities presented by AI while minimizing the risks. As AI continues to change the way business is conducted and create newer, more complex business models, Iansiti’s book will prove invaluable to those striving to stay ahead of the curve.