Cracking the AI Code: 10 Takeaways I learned from the Wharton School

I recently embarked on a course to unlock the secrets of AI, with the hope of advising my clients who are small business owners reluctant to invest in this nascent technology. Quickly, I realized that there are countless books and podcasts claiming to be experts in tapping into the power of AI. On the day I publish this blog post, we witness The Beatles releasing their final "new" song, resurrecting John Lennon's voice from a 1970s recording, thanks to AI technology. We find ourselves delving into the enigmatic realm of AI, a world where, in the words of Mustafa Suleyman, Co-Founder of Deepmind and Inflection AI, "We need humans at the top of the food chain." However, the elusive recipe for extracting value from this transformative technology, which excels at making predictions, remains a well-kept secret. My AI education continues to grow each day as I monitor the staggering investment in AI startups that may not be around in a couple of years. Here are my 10 key takeaways, including shared enthusiasms and concerns, which I believe Sam Altman would attest to:

1.    AI is a Fancy Word for Assistant: Whether you dub it your Companion, Co-Pilot, or Amplified Intelligence, rest assured, AI is the new best friend you didn't know you needed. From planning trips to monitoring physiotherapy and everything in between, it's got you covered.

2.    Machine Learning Won't Steal Your Job: Unless you happen to be a middle manager. AI's not here to take over your role; it's here to make it more efficient. Middle managers, rejoice; AI is your new efficiency guru!

3.    AI is a Copycat: AI isn't the grand inventor; it's a master of remixing. It excels at blending existing ideas and data to create something new and improved, like the artist who knows how to combine colors, not create them.

4.    Decentralization is Crucial: Power in the age of AI shouldn't be monopolized at the top. It's time to spread the influence around, and understanding the needs of your stakeholders is paramount. Decentralization is the key to fostering innovation and adaptability.

5.    Beware of Spurious Relationships: In the AI world, not all data relationships are what they seem. Data-driven organizations swear by data, but not all correlations imply causation. Did babies named Ava cause the mortgage loan crisis? We certainly hope not!

6.    Encourage Humanities: In the AI world, storytelling takes the crown. Code alone won't change the world; it's the power to craft compelling narratives that drives innovation. AI may struggle to create new ideas, but it's a pro at indentifying patterns and predicting answers.

7.    Organization Structure Matters: The impact of AI and decentralization on an organization's structure is colossal. Get it right, and you can expect a 3-5% boost in enterprise value. As Steve Jobs knew, organizational structure is a game-changer. Take Apple and Google as classic examples: one centralized, the other decentralized. The key is identifying where AI can elevate processes and drive innovation.

8.    Sensors are Cheap: Data collection has never been easier with affordable sensors like Apple AirTags and smart thermostats. Guard your personal footprint because Big Brother is getting smarter.

9.    Unbiased Data is Crucial: Unstable data makes predicting the future feel like gambling in the dark. AI thrives on stable and unbiased data, so invest in your data and make sure it is reliable.

10.    Shift Incentives: Welcome new combinations. Firms that invest in data analytics and focus more on recombination in innovation are more productive than firms that do not leverage AI. Explore diverse recombination of existing technologies, where each new element doubles the existing possibilities. Hollywood has this down pat with its endless franchises!!