Corporate Operating Models in the Age of AI


Jim Euchner [JE]: You and Karim Lakhani just published Competing in the Age of AI. You say that AI [artificial intelligence] is creating a radically new operating model for firms—one with remarkable competitive advantages for those who adopt it. Can you explain?

Marco Iansiti [MI]: We’ve seen many years of digital transformation in the economy. Information technology has been penetrating the firm for a long time: ERP [enterprise resource planning] systems, databases, and enterprise applications of all kinds. But until recently, many of these systems were essentially used to reinforce and improve the firm’s existing model—a model we’ve used for structuring firms for 100 years or longer.