Fight, Flight or Freeze: What’s Your Response to the GenAI Threat?
Since the Generative AI explosion early last year, the digital industry has been grappling with the implications of such a significant technological disruption. With global AI investment expected to exceed $800 billion by 2030, businesses large and small are faced with both opportunities and threats.
AI tools have the potential to completely transform the market landscape, displacing current market leaders and leaving even the biggest names struggling to stay relevant. The key to survival and success will be the ability to adapt quickly and leverage AI. Gartner found that 30% of GenAI projects are expected to be abandoned by 2025, yet only 7% of companies feel they are meeting or exceeding their digital transformation goals. What’s contributing to this gap?
Because AI is developing so rapidly, it won’t be perfect. We need to recognise both its potential and its pitfalls at this stage – when it gets things right, and when it gets things wrong. A recent think tank report even called for a system to record AI misuses and failures, so that we can learn from the technology and use it successfully. But we can’t sit back and wait for government and policymakers to act. Organisations need to apply their own safety nets and careful judgement to truly reap the benefits of this technology.
When organizations consider a threat, they typically respond in one of three ways: fight, flight, or freeze.
VP of Technology, EMEA at CI&T.
Fight
Organizations in “Fight” mode are proactive in their approach to GenAI adoption. They recognize the transformative potential of GenAI and are committed to integrating it into their operations. In fact, four out of five companies expect AI to have a positive impact on their business, while three-quarters have already started using GenAI or plan to do so this year.
Successful organizations typically take a highly coordinated and value-driven approach, creating a dedicated GenAI task force to ensure that each initiative aligns with broader strategic goals. This requires thorough planning, prioritization of high-impact areas, and proper resource allocation. By starting with small, focused experiments, they can learn quickly, gain initial traction, and demonstrate the value of the technology. This not only helps assess return on investment, but also communicates value to stakeholders.
Organizations struggling in “Fight” mode often suffer from issues such as disaligned or disconnected leadership. Without a unified vision, different departments may pursue their own GenAI projects in an uncoordinated manner, leading to inefficiencies and wasted resources. Additionally, the lack of clear success metrics can lead to confusion around the impact and value of these initiatives, making it difficult to justify investment.
Flight
In “Flight” mode, organizations exhibit a more cautious or reluctant attitude toward GenAI adoption. Some view GenAI as a distraction from their primary goals and objectives, fearing that it could divert resources and take focus away from core activities. Others are skeptical about the potential value GenAI can add to their existing products or services, and question the technology’s maturity or relevance to their specific industry.
Another common concern is fear of job displacement. Employees may worry that the automation and efficiency that GenAI brings could jeopardize job security. Additionally, some may dismiss GenAI as overhyped and prefer to wait until the technology is more widely adopted before investing in it. Finally, concerns about the risks associated with GenAI, including ethical considerations and the potential for misuse, may also lead to a “flight” response.
While these concerns are valid, if they cause organizations to stop actively exploring the potential of GenAI, they may be sabotaging their own future.
Freeze
Organizations in “Freeze” mode are those that, despite recognizing the potential value of GenAI, are unable to move forward due to various internal barriers. Many organizations fall into this category for a variety of reasons.
Some organizations may be in the midst of other key transformation initiatives that take priority, such as becoming more lean or agile or moving to a product-centric or data-driven approach.
Additionally, organizational silos and the use of outdated legacy technology can hinder progress. Fragmentation across teams can lead to duplication of efforts, inconsistent strategies, and a lack of shared understanding of the benefits of GenAI, while old IT infrastructure would require costly and time-consuming upgrades to accommodate GenAI.
Legal and compliance teams may also impose strict guidelines or even an outright ban on the use of GenAI due to concerns over data privacy, intellectual property, or regulatory compliance.
Creating an effective action plan
With these response modalities in mind and the assumption that action is needed, what should organizations do to move into the action mode in a way that generates value for the organization?
To effectively adopt GenAI, organizations must begin by educating and aligning executive stakeholders on its potential and risks. Establishing a centralized team to manage GenAI initiatives is critical. Starting with small, focused pilot projects can demonstrate value and feasibility. Implementing metrics to track and demonstrate the impact of GenAI efforts can help gain broader stakeholder buy-in.
By taking these first steps, organizations can move toward an effective action plan to leverage the transformative potential of GenAI.
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