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AI and Innovation

Understanding Customer Needs

How do people know what they want? When something new emerges, is it simply a matter of demand? Innovation often takes surprising forms, appearing arbitrary or unexplainable.

The Role of AI in Business Strategy

Michael Edwards discusses AI’s role in business strategy, emphasizing hypothesis development, testing, and the importance of pivoting in product development. He highlights the mix of internal and external applications in leveraging AI.

“AI has been around for decades,” Edwards notes. “In terms of AI-enabled technology and business transformation, it’s still the early days.”

He mentions the “classic innovator’s dilemma” where companies must transition to new technologies as AI capabilities surpass existing ones.

Lessons from Kodak and Fuji

Edwards cites Kodak and Fuji as examples, where Fuji thrived by embracing digital camera technology, unlike Kodak.

“They saw the writing on the wall,” he said, “but where Kodak struggled, Fuji took decisive action.”

Pre-emptive Problem Solving

Edwards stresses the importance of solving customer problems proactively, likening it to the evolution of mobile phones into multifunctional devices.

AI’s Limitless Possibilities

Edwards calls for a ‘strategy led solution’ and a deep understanding of customer needs, both defined and emerging. The possibilities with AI are limitless, as illustrated by innovations like robotic bees and AI news anchors (link).

Ultimately, the only limits are those of imagination, a message emphasized to MIT graduates and echoed in enthusiastic discussions at IIA.