Some Businesses And Founders Are Just Entirely Doomed Because of AI.

Hint: It’s not because of their industry.

A client of mine owns an agency, and the way they go about everything in their operation is outdated. And by outdated… I mean old.

Think about a big traditional office with cubicles. There’s a meeting room where the manager’s chair is a bit more plush than the others. There’s a smart-casual dress code, and it’s taken a bit too seriously.

For them, the whole concept of remote work is taboo. They were one of the earliest companies to ask their employees to return to the office after social distancing stopped being mandatory, despite productivity being at an all-time high.

So yeah, I was consulting for this client and knew with absolute certainty that the industry has been relentlessly hitting them. They knew it, too, but it “wasn’t their fault.”

It was “all because of AI.”

Admittedly, my client operated in an industry that was hugely affected by AI. I won’t beat around the bush or go around that fact. It was hitting them hard.

So, how did my client respond to this threat?

• Did they take the time to learn what AI can help them achieve? Nope.
• Did they put in an ounce of effort thinking about a strategy that integrates AI? God forbid!

They hired a few fresh graduates to have some “younger people” comfortable enough to handle everything related to AI…

As I said, AI had quite an impact on their industry. But it wasn’t the only source of their issues.

Undeniable.AI

If you still think AI isn’t going to change the landscape of nearly every industry, you’re delusional. Stop reading this article and read a report about the impact of AI.

Of course, though, a caveat to what I’m about to say is that some industries are more threatened by AI than others.

For instance, a lot of creative industries are relatively safe (for now). After all, I think we’re quite some time away from when AI can generate music that you’d consciously choose to listen to instead of your favorite artists.

But even if you’re in an “AI-proof” industry, not every facet of your operation will exclude AI.

So yes, some industries are more impacted by AI than others, but that doesn’t make every company in those “Safe” industries bulletproof… Nor does every business in a threatened industry become a martyr.

So, back to my client, AI didn’t cause their problems. The issue was their mindset.

• There’s thinking away from the herd.
• Then there’s pretending the herd doesn’t exist.

My client’s decision to hire younger people to “handle AI” pinched my nerves. The whole decision-making process is flawed.

For instance, my client doesn’t realize that these ‘Youngsters’ who are familiar with AI probably don’t want to commute to an office every day. After all, they can do their jobs just as well (and probably even better) from the comfort of their own homes.

I can go on and on about the flaws in their decision, but that’s beyond the point. The point is that the industry is in a constant state of flux, and you have to have a flexible mindset to thrive.

The most successful organizations get to where they are because their leaders embrace change. They swim with the currents instead of wasting energy against them.

The concept of being resistant to change isn’t new, and maybe it isn’t malicious … But it sure isn’t smart.

There are a few reasons why someone might resist change.

• It could stem from a perceived threat to the existing status quo.
• Maybe it’s the result of a misguided notion of superiority.
• Or perhaps it’s driven by a fear of being replaced by a particular innovation.

But no matter how justified the reason is, we all know what can happen when you resist change. Let’s name-drop a few examples:

• Kodak? They resisted digital photography even though they had the technology.
• Blockbuster? They resisted the digital transformation.
• Myspace? They didn’t improve the user experience, nor did they focus on user engagement.
• Yahoo? They didn’t buy Google when it had the opportunity (TWICE!)

You don’t know what you’re missing.

Let’s look on the brighter side and see how a few non-tech companies have used AI to augment their products.

• L’Oréal showcased an AI-powered beauty advisor that analyzes factors like your skin tone to recommend cosmetics.
• Coca-Cola rocked its holiday campaign with a generative AI initiative that allowed visitors to use GPT-4 and Dall-E to create Coke-themed cards to send to friends and family.
• Mayo Clinic doctors are using AI to boost their early detection of heart diseases.

And none of those industries are particularly tech-oriented.

I’m sure you realize how AI can go beyond just automating tasks. The World Economic Forum stressed the importance of being optimistic about AI in the future of work.

One of AI’s most significant benefits is how it can enhance our human abilities (Cybernetic enhancements?). It can create new opportunities and enhance the quality of our outputs.

With the right guidance and attention, AI can work wonders that go beyond making you more efficient at emails.

Here’s a simple way to think about this: When we free our minds from the need to spend so much energy on mundane tasks, what can flourish from this space we’ve created?

And that’s my take on the threat of AI to the rigid, old-fashioned mindsets that permeate businesses everywhere.

As always, this is an interactive article, so let’s start a discussion in the comments! How important is it for businesses to embrace change, bending with the wind instead of taking the stiff and rigid approach? Do you think it’s realistic that businesses should try to understand what they’re up against rather than simply hiring people to ’ handle it’?

I’m AL, a business consultant in Zurich, Switzerland. I believe in the power of delivering value to you, the reader. Follow me on various social media platforms if you’re interested in the value of my content.