g-f(2)2761 The Reality of Gen AI in Business Strategy

 

genioux Fact post by Fernando Machuca and Copilot

Introduction by Fernando and Copilot 

In the rapidly evolving landscape of the g-f New World, understanding the true impact of generative artificial intelligence (gen AI) on business strategy is crucial. The genioux Fact post “g-f(2)2761 The Reality of Gen AI in Business Strategy” sheds light on the profound implications of gen AI and its role in shaping the future of businesses. This knowledge is essential for anyone aiming to excel in their Personal Digital Transformation (g-f PDT) and the broader g-f Transformation Game (g-f TG).

The insights from g-f(2)2761 emphasize that while gen AI holds immense potential for value creation and business transformation, it does not offer a sustainable competitive advantage on its own. Instead, the widespread adoption of AI will level the playing field, making it imperative for individuals and organizations to leverage their unique strengths and existing competitive advantages.

By internalizing the lessons from g-f(2)2761, you can navigate the complexities of the digital era with confidence. This understanding will empower you to harness the full potential of gen AI, amplify your unique capabilities, and stay ahead in the g-f New World. Embracing this knowledge is a strategic move towards winning the g-f PDT and excelling in the g-f TG, ensuring your success in an ever-changing digital landscape.

Introduction

The article “AI Won’t Give You a New Sustainable Advantage” from Harvard Business Review delves into the transformative potential of generative artificial intelligence (Gen AI) in the business landscape. It explores the implications of widespread AI adoption and its impact on competitive advantage.

genioux GK Nugget

"Generative AI will not provide a sustainable competitive advantage because its widespread adoption will level the playing field." — Fernando Machuca and Copilot, August 14, 2024

genioux Foundational Fact

While generative AI has the potential to create significant value and transform business practices, it will not offer a sustainable competitive advantage. This is due to the technology’s profound and widespread effects, which will compel all companies to adopt it, thereby neutralizing any unique advantage. However, companies with existing, hard-to-replicate competitive advantages can leverage AI to amplify their value.

The 10 Most Relevant genioux Facts

1. Generative AI has transformative potential for business practices.
2. Widespread adoption of AI will level the competitive playing field.
3. AI will not provide a new sustainable competitive advantage.
4. Companies will be compelled to adopt AI due to its profound effects.
5. Existing competitive advantages can be amplified by AI.
6. AI’s value creation is significant but not unique to any one company.
7. The technology’s impact is both profound and widespread.
8. Businesses must focus on leveraging existing strengths with AI.
9. Sustainable advantages come from hard-to-replicate assets.
10. AI adoption is essential but not a differentiator on its own.

Conclusion

The article underscores that while generative AI is a powerful tool for value creation and business transformation, it will not serve as a source of sustainable competitive advantage due to its inevitable widespread adoption. Companies should focus on leveraging their unique, hard-to-replicate strengths to maximize the benefits of AI.

REFERENCES

The g-f GK Context

Jay B. Barney and Martin Reeves, AI Won’t Give You a New Sustainable Advantage, Harvard Business Review, From the Magazine (September–October 2024).

ABOUT THE AUTHORS

Jay B. Barney is a Presidential Professor of Strategic Management and the Lassonde Chair of Social Entrepreneurship at the University of Utah’s David Eccles School of Business. He is a coauthor, with Manoel Amorim and Carlos Júlio, of The Secret of Culture Change.

Martin Reeves is the chairman of Boston Consulting Group’s BCG Henderson Institute. He is a coauthor, with Jack Fuller, of The Imagination Machine (Harvard Business Review Press, 2021) and a coauthor, with Bob Goodson, of Like: The Button That Changed the World (Harvard Business Review Press, April 2025).

Classical Summary of the Article

The article "AI Won’t Give You a New Sustainable Advantage" from Harvard Business Review discusses the impact of generative artificial intelligence (gen AI) on business strategy. The authors argue that while gen AI has the potential to create significant value and transform business practices, it will not provide a sustainable competitive advantage. This is because the technology's profound and widespread effects will compel all companies to adopt it, leveling the playing field.

However, the article highlights a silver lining: if a company already possesses a competitive advantage that cannot be easily replicated using AI, the technology can amplify the value derived from that advantage¹.

Source: Conversation with Copilot, 8/14/2024

(1) AI Won’t Give You a New Sustainable Advantage - Harvard Business Review. https://hbr.org/2024/09/ai-wont-give-you-a-new-sustainable-advantage.

(2) How Brand Planning Can Benefit From Generative AI - Forbes. https://www.forbes.com/councils/forbesbusinesscouncil/2023/07/17/how-brand-planning-can-benefit-from-generative-ai/.

(3) The power of smart questions in leadership. https://agribusiness.purdue.edu/2024/08/14/the-power-of-smart-questions-in-leadership/.

Jay B. Barney

Jay B. Barney is a distinguished scholar in the field of strategic management, currently serving as a Presidential Professor of Strategic Management and the Lassonde Chair of Social Entrepreneurship at the University of Utah’s David Eccles School of Business¹².

Born on October 8, 1954, in Walnut Creek, California, Barney spent his formative years in San Bruno, California. He graduated summa cum laude from Brigham Young University in 1974 with a major in sociology and later earned his PhD in sociology from Yale University in 1980¹.

Barney's academic career began at the Anderson Graduate School of Management at UCLA in 1980. He later joined the Mays Business School at Texas A&M University in 1986 and then moved to the Fisher College of Business at Ohio State University in 1994, where he held the Chase Chair for Excellence in Corporate Strategy¹. In 2012, he joined the University of Utah, where he continues to make significant contributions to the field of strategic management².

Barney is renowned for his work on the resource-based view of the firm, particularly his 1991 paper that developed the VRIO framework (Valuable, Rare, Costly to Imitate, and exploited by Organization). This framework has been instrumental in distinguishing different types of firm performance and identifying the attributes of resources and capabilities that contribute to sustained competitive advantage¹.

In addition to his academic achievements, Barney has received numerous awards and honors, including the Academy of Management Scholarly Contributions Award (2010) and the Irwin Outstanding Educator Award (2005). He is a fellow of both the Academy of Management and the Strategic Management Society and has received honorary doctorates from several prestigious institutions¹².

Barney's research has been widely published in leading academic journals, and he has served in various editorial roles, including as editor of the Academy of Management Review². He also presents executive training programs and consults with firms on strategic analysis and large-scale organizational change².

Jay B. Barney's contributions to strategic management and entrepreneurship continue to influence scholars and practitioners worldwide, making him a prominent figure in his field.

¹: [Wikipedia](https://en.wikipedia.org/wiki/Jay_Barney)

²: [David Eccles School of Business](https://eccles.utah.edu/team/jay-barney/)

Source: Conversation with Copilot, 8/14/2024

(1) Jay Barney - Wikipedia. https://en.wikipedia.org/wiki/Jay_Barney.

(2) Jay Barney | David Eccles School of Business, University of Utah. https://eccles.utah.edu/team/jay-barney/.

(3) Alumni and Friends Directory | Huntsman | USU. https://huntsman.usu.edu/alumni/alumnidirectory/barney_jay.

(4) AIB Fellows: Jay Barney - Academy of International Business (AIB). https://www.aib.world/about/aib-fellows/jay-barney/.

Martin Reeves

Martin Reeves is a prominent figure in the field of business strategy, currently serving as the Chairman of the BCG Henderson Institute, Boston Consulting Group’s think tank dedicated to exploring and developing valuable new insights from business, technology, economics, and science¹².

Reeves holds an MBA from Cranfield University School of Management and an MA in natural sciences from the University of Cambridge. He also pursued postgraduate research in biophysics at the University of Tokyo and earned a certification in Japanese from Osaka University of Foreign Studies¹²³.

Since joining BCG in 1989, Reeves has led a broad range of strategy assignments across various sectors, including Financial Institutions, Consumer Goods, Industrial Goods, and Health Care¹. His expertise spans adaptive strategy, strategy for multi-business systems, sustainability strategies, ecosystem strategies, collective learning and innovation, corporate vitality, and trust¹.

Reeves is a regular contributor to leading management journals such as Harvard Business Review, MIT Sloan Management Review, and Fortune. He is also a frequent public speaker and a repeat TED@BCG presenter¹². He co-authored "The Imagination Machine," an executive’s guide to systematically harnessing imagination for corporate reinvention and rejuvenation, and "Your Strategy Needs a Strategy," which introduces the “strategy palette” as a tool for business leaders to tailor their approach to strategy based on their strategic environment¹².

In addition to his role at BCG, Reeves is a Trustee of the London Institute for Mathematical Sciences³. His contributions to the field of business strategy and his thought leadership continue to inspire and guide business leaders worldwide.

¹: [Boston Consulting Group](https://www.bcg.com/about/people/experts/martin-reeves)

²: [BCG Henderson Institute](https://bcghendersoninstitute.com/contributors/martin-reeves/)

³: [London Institute for Mathematical Sciences](https://lims.ac.uk/martin-reeves/)

Source: Conversation with Copilot, 8/14/2024

(1) Martin Reeves - Boston Consulting Group. https://www.bcg.com/about/people/experts/martin-reeves.

(2) Martin Reeves - BCG Henderson Institute. https://bcghendersoninstitute.com/contributors/martin-reeves/.

(3) Martin Reeves | London Institute for Mathematical Sciences. https://lims.ac.uk/martin-reeves/.

(4) Martin Rees - Wikipedia. https://en.wikipedia.org/wiki/Martin_Rees.

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