This article was first published in Harvard Business Review and is available via subscription.
First movers that deploy GenAI to enhance existing capabilities often experience a tailwind in the short term. As they become more efficient, more productive, or more responsive, these companies frequently unlock new growth potential and gain a competitive advantage. But those benefits are likely to be temporary as GenAI proliferates and commoditizes their gains.
Adam Job, Sangeet Paul Choudary, Ulrich Pidun, and Jeffrey Sprong write that as with previous breakthrough technologies, GenAI is expected to create new frictions and business models. Business leaders seeking durable advantage by deploying GenAI should therefore anticipate where future sources of value may reside. Executives should also look for the changes that GenAI may drive in the broader market and reposition their company as a valuable node in the emerging ecosystem. By proactively pursuing the answers to five questions, leaders can identify the best strategies.