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The Resurgence of Innovation During a Sea Change
by Tina Shah Paikeday
June 24, 2024
Disruption is the new normal in a post pandemic world with heightened geopolitical risk, and it has caused us to rethink approaches to supply chain distribution, climate change, the future of work, and how to create belonging in a world of culture wars. With the game changing technological innovation of Generative AI, companies will require more than incremental innovation as many business models will be entirely transformed in ways similar to the impact of the internet on business transformation. In order to create new playbooks to solve continuously evolving problems, leaders must not only foster collaboration through teams, but they must also master the individual level competencies of innovative leadership. Since the need for innovation is table stakes in the near term, organizations may be well served to evaluate the level of innovation in their executive leadership team and board of directors. Given the pace and magnitude of disruption that will be caused by Generative AI beyond some of its more immediate efficiency benefits, adding a Chief Innovation Officer to the executive leadership team could also be game changing. Such a leader would be well equipped to proactively plan for AI and other disruptions while building organizational innovation capability.
The Rapid Transformation Potential of Generative AI
Leaders agree that generative AI is one of the most transformational technologies ever invented. CEO of Tesla Elon Musk says that it is “the fastest-advancing technology he’s ever seen” and predicts “it will probably surpass the collective intelligence of humans in five years” (Avila, 2024). CEO of JP Morgan Chase Jamie Dimon told investors, “AI could be as transformative as some of the major technological inventions over the past several hundred years…think printing press, the steam engine, electricity, computing, and the Internet” (Avila J. d., 2024). According to the Future Institute, Generative AI is being adopted at a much faster rate than any of those prior inventions including the internet.
GenAI Evolution and Innovative Leadership
Integrating AI into core strategies is a new corporative imperative and is leading to “The Rise of the Chief AI Officer: Powering AI’s Corporate Revolution” (Minevich, 2024). Various archetypes of this leadership role are emerging. As companies consider such a role, it will also be everyone’s responsibility to innovate and embed AI into their workflows. Innovation leadership competencies such as out of the box thinking, entrepreneurial leadership, determination, and the ability to leverage diverse perspectives will be critical for all forward-looking leaders.
The Role of the Board
As companies consider which leadership structure is the best fit and how to upskill all leaders to innovate through AI, boards can help management to ensure that the right leadership is in place for AI transformation. The importance of AI might necessitate adding an AI skillet to advise on related commercial considerations and governance. Boards must plan for how AI will impact future corporate strategy and performance. They must also weigh the governance issues with data risks and the responsible and ethical use of AI at this critical time of change.
