The Business Discovery Model: Understanding AI's Business Impact

Discovering New Frontiers - The Role of Generative AI in Business Innovation

Last week, we highlighted how one of the biggest challenges for business leaders with AI is trying to understand it's business value & impact, where I introduced you the Cost Reduction Economic Model as a useful way to better understand AI’s business impact.

In this post, I’m going introduce you to the Business Discovery Economic Model.

This model offers a sophisticated framework for understanding the transformative impact of generative AI for discovering new business opportunities using AI, rather than improving the efficiency of existing use cases.

I have found it extremely useful for helping businesses evolve beyond existing use-cases and discover entirely new business opportunities enabled by AI.

Unlike traditional models that focus on the linear adoption of new technologies, this model delves into and embraces the intricate and often unpredictable ways generative AI can create business value.

This post explores the components of this model, using historical parallels and strategic approaches to uncover new business opportunities.

The Complexity of Generative AI in Business

Generative AI is a transformative technology with potential applications that are not immediately obvious.

Similar to the Internet's early days, which began as a military project before transforming global communication and commerce, generative AI's full value often emerges through experimentation and creative applications.

This evolution requires a strategic approach to discovering novel forms of value that generative AI can offer.

As noted by McKinsey, generative AI could add between $2.6 trillion to $4.4 trillion in economic value annually across various industries.

Strategic Approaches to Business Discovery

Businesses can adopt these strategic approaches to best harness the potential of generative AI for business discovery…

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