GenAI Adoption Strategy: Lessons from History

Lately, one of the questions I hear the most is: “How can I adopt GenAI before it’s too late?” It’s not a straightforward question. However, thinking about GenAI as closely paralleled with the Industrial Revolution might help spark an idea regarding the selection of an effective GenAI strategy for your needs and interests.

The parallel between GenAI and the Industrial Revolution:

Everyone pretty much knows these days that GenAI and the Industrial Revolution are alike. First, The Industrial Revolution was a time of great challenge but also full of opportunities. The same goes with our time — the time of GenAI. Second, they both have transformative power. But because the Industrial Revolution happened a long time ago, back in the 1700s, it’s already shown us how much it can shake things up. On the contrary, GenAI is just getting started, so we haven’t really experienced its full impact yet. But, since history repeats itself and indeed offers valuable lessons, now is the perfect moment to pick up some lessons from the Industrial Revolution — the older sibling. This could help us determine the best way to adopt and integrate GenAI into our life and business.

The Industrial Revolution:

The Steam Engine was the spark that ignited the Industrial Revolution, but not every enterprise back in the day applied steam power directly. Companies didn’t all do the same thing; some developed new machinery, becoming the tech arm of the day. Others took those machines and expanded their products and services. Then there were those who saw the big picture — they built factories, laid down miles of railroad tracks, and hammered out the infrastructure that would become the backbone of industrial societies. Take, for instance, visionaries like Stephenson and his development of the locomotive and the subsequent establishment of railway systems, Carnegie, with his steel mills, and Vanderbilt, with his investments in railroads. So, while steam was the catalyst, it was the network of businesses, each specializing in different but interconnected areas, that really shaped the Industrial Revolution into the world-changing phenomenon it became.

GenAI Adoption:

Just as businesses in the 18th century were not solely built around the raw power of steam, enterprises today should expand their vision beyond the straightforward use of large language models (LLMs). It’s a common observation that most companies are focusing on the direct application of LLMs, but they might be missing out. By incorporating principles like Nash equilibrium — a principle from game theory that suggests the best outcome comes when everyone involved makes the best decision for themselves, considering the decisions of others — businesses should be considering a wider range of possibilities to fully exploit the capabilities of GenAI. This approach can lead to creative and strategic advantages that might otherwise be missed. Since GenAI is still in its infancy, developing the necessary business and technology foundations requires a substantial effort. Let’s say one company specializes in developing GenAI algorithms while another uses those algorithms to enhance customer service. Meanwhile, another business focuses on integrating GenAI into logistics to make supply chains more efficient. This stage — GenAI infancy — offers a golden chance for us all to become active contributors, not just passive consumers. We should aim to replicate the vision of those historical industrialists who built the factories and railways, not just those who rode the wave of steam power.

Strategies for Adoption

In essence, by choosing the right GenAI adoption strategy, businesses can avoid saturating the market by not crowding into a single cluster and instead creating a dynamic, interdependent network of services and solutions. This approach will lead to organizational success as well as the full potential of GenAI. Coming back to the question we started with, “Is it too late to start using GenAI?” there’s no straight answer. Today, the opportunity presents itself for businesses to not only passively utilize GenAI but also actively contribute to shaping it into the transformative force it’s destined to be. But you shouldn’t wait too long. If you wait, this opportunity might disappear as others get ahead.