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HBR IdeaCast

How Generative AI Changes Organizational Culture

HBR IdeaCast

Harvard Business Review

Leadership, Entrepreneurship, Communication, Marketing, Business, Business/management, Management, Business/marketing, Business/entrepreneurship, Innovation, Hbr, Strategy, Economics, Finance, Teams, Harvard

4.41.9K Ratings

🗓️ 18 May 2023

⏱️ 34 minutes

🧾️ Download transcript

Summary

Read just about any business history and you realize just how much a firm’s success depends on its culture. Without the right culture, you can't have successful innovation. You can't compete successfully. You can't thrive over the long term. So, if you want to lead your organization into a future that features generative artificial intelligence, you need to build the right culture for it. In this episode, How Generative AI Changes Organizational Culture, HBR editor Amy Bernstein speaks to two experts, Nitin Mittal and Tsedal Neeley, about how to adopt generative AI effectively and ethically within your organization. Mittal leads Deloitte’s global AI business and cowrote the book All-in On AI: How Smart Companies Win Big with Artificial Intelligence. Neeley is a professor at Harvard Business School and wrote the HBR article “8 Questions About Using AI Responsibly, Answered.” They discuss the risks, challenges, and emerging best practices of adapting organizational culture to generative AI. How Generative AI Changes Everything is a special series from HBR IdeaCast. Each week, HBR editor in chief Adi Ignatius and HBR editor Amy Bernstein host conversations with experts and business leaders about the impact of generative AI on productivity, creativity and innovation, organizational culture, and strategy. The episodes publish in the IdeaCast feed each Thursday in May, after the regular Tuesday episode. And for more on ethics in the age of AI, check out HBR’s Big Idea on implementing the new technology responsibly.

Transcript

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0:00.0

Nathan, your management consultant, you lead the Lloyd's global AI business.

0:06.1

What's the most interesting conversation you've had recently with a client?

0:10.4

At a client, the CFO of the client basically said,

0:15.7

if I apply generative AI in my company and the use case that Nathan you articulated to me,

0:22.0

which is apply in a call center for customer care. Why? Because the marginal cost of

0:29.0

conversing with that customer using a virtual digital agent is zero. And because the marginal cost

0:35.9

is zero, I know if I apply it, it'll drop my cost structure by 60 to 70%. But what does it do

0:43.0

to all the employees that I have who are from a disadvantaged part of the society?

0:47.7

Now the CFO was white, this vantage part of the society who essentially are earning their daily

0:53.4

living and have no other jobs. I mean, that seems like a perfectly reasonable question.

1:00.1

Yeah. How do you had your answer? I wanted it to certainly agree because it's a difficult one

1:04.7

to answer. Yeah. The reality is, yeah, it'll lead to job losses. And the only way,

1:10.3

only way that you'll be able to kind of overcome it, you have to rescale yourself for a different job

1:15.9

as opposed to being in a call center. rescale yourself, get a vocation training to be, for example,

1:21.6

a prompt engineer who actually prompts and trains the models than being in the call center.

1:26.1

The pay is probably the same, but there has to be a willingness both by the individual to get

1:30.0

retrain and by the employer to do the retrain. Welcome to how generative AI changes everything,

1:40.8

a special series from the HBRID cast. Read just about any business history or any case study,

1:48.0

and you realize just how much success depends on company culture.

1:52.1

The unwritten rules of behavior can make the difference between capitalizing on a big shift

1:57.4

or missing it altogether. You can't have successful innovation without the right culture.

2:04.3

You can't compete successfully without the right culture. You can't thrive over the long term

...

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