Competitive Advantage

During an AI Accelerator workshop this week, I was chatting with a client about the impact of AI. He grabbed a pen and drew a small chart on the whiteboard:

“If AI follows the normal adoption curve, then if we adopt AI sooner, this is our competitive advantage.”

This simple illustration effectively captured the current state of AI adoption. One of the key challenges is that most people lack a basis for comparison on where they stand on the AI adoption curve. Without insight into other organisations and meaningful benchmarks, it’s difficult to gauge our own progress on this S curve.

As the AI Accelerator collaborates with a diverse range of businesses, charities, and individuals, we have gathered insights that can help illuminate your position relative to others.

1. The Young Aren’t Automatically Adopting AI

We often assume that young people will be the first to adopt new technology. However, through lectures at universities, work with youth charities, and general inquiries into usage habits, I was surprised by how many young people are not using AI. While potential use cases in professional settings are clear, applications for young people are less obvious. Academia’s unclear guidelines on AI usage, due to concerns about its impact on learning and the temptation to use tools like ChatGPT for assignments, also contribute to this hesitancy.

2. Not Everyone Is Using AI

Whenever I address a larger group, I ask three questions:

• Who has used generative AI? (about 3/5 people)

• Who is using AI in their work? (about 1/5 people)

• Of those that use it, how much are you using it? (a lot)

While these numbers vary by audience, the key takeaway is that AI users are in the minority, but they experience substantial gains. These gains make AI an essential part of their work, allowing them to operate more efficiently and at a higher level. However, many are reluctant to share their ‘secret sauce’, fearing it might lessen their competitive edge.

3. You Don’t Need to Be a Computer Science PhD to Use AI

Media and government sources often emphasise the need for upskilling in AI. While this is beneficial, the focus tends to be on academic or technical skills, overlooking the need to upskill the workforce in using AI. Generative AI tools like ChatGPT, Gemini, and Claude are still in their infancy, and while discussions on privacy and ethics dominate the media, many people remain unaware of the transformative potential these tools offer for everyday tasks.

4. Measuring ROI on AI Is Challenging

Measuring the return on investment (ROI) for AI initiatives can be tricky. Although AI start-ups and large companies alike promote their AI projects, tangible ROI from generative AI is often elusive due to the technology’s current stage. Some start-ups may overstate benefits while understating challenges. Nonetheless, for those who have adopted AI, the impact is clear: increased productivity, better information access, and significant time savings. Despite some experimental failures, the trend towards higher quality, productivity, and capability in the workforce is undeniable.

While the illustration of the AI adoption curve may lack concrete figures, ROI, and timescales, our experience with users and businesses adopting AI indicates significant benefits, leading to a competitive advantage.

If you or your business are wondering where you stand on the adoption curve, it’s less about pinpointing your exact position and more about taking action. Start pushing forward with AI adoption now or you risk not just missing out but losing a competitive edge.