Nobel laureate breaks through AI hype

Many analysts predict that artificial intelligence (AI) will transform the global economy, but MIT economist Daron Acemoglu offers a - in my view, very welcome - different perspective.

In a short video, he explains why AI could automate only 5% of tasks and add only 1% to global Gross Domestic Product (GDP) in the next decade, and shares his views on how management of organisations should approach AI investments.

AI has yet to prove itself

Whereas the potential of the Internet - and the World Wide Web - was clear early on, that of AI is not, and the technology has yet to deliver applications that can transform manufacturing or create valuable new services.

Acemoglu reveals which jobs are at risk of being automated and explains why jobs requiring judgment and social intelligence remain safe.

Proceed wisely

His advice for leaders:

• Resist hype-driven investments and competitive pressures.

• Focus on creating new services, not just cutting costs.

• Use AI to extend human workers, not replace them.

• Work with experienced employees to identify valuable AI applications.

This research-based perspective breaks through overly high expectations and recognises the potential of AI when deployed strategically.

Work on your digital strategy

It's fine to experiment with AI. Start with some initiatives and see what the outcome is. But if you really want to make a difference, create a digital strategy in which a problem needs to be solved. If AI can then be a possible solution,

Use the TIMAF strategy game to develop a digital strategy in which in AI can be a tool to solve a problem.