AI as innovation assistant
Those that excel in innovation recognize that judicious use of technology such as AI is what will help them get ahead. Leading innovators in a recent survey of 1,000 executives conducted by NTT Data (11% of the sample) are exceeding expectations and believe that using new technology to create a new market or disrupt an existing market will achieve the biggest impact.
This represents “a different, more aggressive view from the majority of executives,” the report’s authors point out.
Significantly, 55% seek to develop new technological breakthroughs that create new markets, versus none (that’s 0%) of the rest of the executives in the survey. Another 45% of leading innovators do so by creating new technologies or business models that disrupt existing markets — versus 18% of the rest of the survey.
The question is then, how exactly is advanced technology making innovation possible for executives and entrepreneurs? Jignesh Patel, computer science professor at Carnegie Mellon University and co-founder of DataChat, sees AI paving the way to low-cost experimentation, thereby accelerate innovation.
For starters, generative AI “significantly simplifies the testing and implementation of new ideas and structures,” he says. “It has drastically reduced the time required for testing, especially in scenarios previously reliant on manual human input.’
Experimentation for innovation is a strong use case for AI, agrees Tony Wang, managing partner at 500 Global. It enables innovators “to explore new possibilities and identify areas for growth, particularly for those previously limited by resources. With nearly free AI offerings available, businesses can now explore AI’s potential to enhance their development and growth.”
AI can serve “as a tool to improve existing operations, similar to how cloud computing transformed businesses,” he adds.
A prime example of AI in action is in marketing, “where generative AI enables the rapid creation of multiple high-quality marketing collateral for swift A/B testing, leveraging AI in both the creation and evaluation phases,” says Patel.
There is a potential boost to the product development side as well. “AI-powered tools like Replit and GitHub Copilot are enabling developers to build products and services more quickly and effectively, reducing the need for large teams and extensive capital investments,” says Wong.
This democratization of technology enables innovators “to focus on addressing specific market needs that may have been previously overlooked,” Wong says. “AI similarly can reduce the costs associated with product distribution and go-to-market strategies. This enables companies to reach a wider audience more effectively and efficiently, expanding their market potential and fostering innovation.”
Across all parts of organizations, generative AI can assist in ideation by “synthesizing vast amounts of internal and external or public information to generate new ideas,” Patel relates. At this point, human intervention is necessary. ‘Note that I say ‘ideas.’ Now, you need to decide which of the many ideas it presents you should implement, when to implement them, and carefully consider any adverse effects.”
Perhaps the most compelling advantage AI brings to innovation is its ability to combine knowledge from diverse sources. It enables “combination of knowledge and experience from multiple fields which is more valuable for solving complex problems,” Wong says. “AI can help systemize the innovation process by combining insights from diverse sources, simulating this range of expertise. While experts in specific fields remain important, AI can accelerate the discovery of new solutions by broadening the scope of perspectives considered.”
Execution in the real world is “a quality inherent in humans, and the inherently human ability to organize across the physical and digital worlds,” he explains. AI assists in generating and testing new ideas at a rapid rate, but the onus is still on human leaders “to bring more of this skill to your organization and cultivate it internally.”
“While it’s tempting to impress investors with flashy, GPT-inspired demos, the key lies in addressing complex problems that others will struggle to solve. Everyone has access to GPT now. So that is not part of the moat! Focus on developing a unique approach that sets you apart and is challenging for competitors to replicate. This approach ensures not just innovation but a sustained competitive edge.”
Remember, innovation isn’t just about pushing new technology, but using that technology as a vital tool. “While it’s tempting to impress investors with flashy, GPT-inspired demos, the key lies in addressing complex problems that others will struggle to solve,” Patel says. “Everyone has access to GPT now. Focus on developing a unique approach that sets you apart and is challenging for competitors to replicate.”
AI “is not a passive tool,” says Wong. “It requires active engagement from leaders to reap its benefits and maintain competitive edge.”