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The real reason why generative AI is a game changer

Most of the value in business is created by the intangible parts of processes, services, and products. Sure, we buy concrete items, and physical processes keep the gears of any business turning, but the real value lies elsewhere. We're talking talent, knowledge, brand, data, software, and digital services. All more or less immaterial. And this is the pool where AI dives in and splashes everything around.

Yes, we all know AI is a big deal. But do we really know why? Do we get the big picture?

Let’s assume you agree with me that most of the value-add in business comes from somewhat intangible elements. One of the key characteristics of this intangible world is that it forms flows, whereas the tangible side is governed by inertia.

So, FLOW is the keyword here.

Generative AI has (or will soon have) access to all previously generated information in the world. And this information comes in many formats: books, scientific publications, news articles, opinions, archived social media chatter, images, videos, and all sorts of other collected data. This content can be viewed as intangible, yet it doesn’t flow easily. It’s often stored somewhere, waiting to be injected into a discussion or project. Many companies have built operating systems to manage logistic centers where data flows are used to run processes and predict the future. But typically, these systems are expensive to build and restricted in their interaction with other flows.

Enter Generative AI, bringing all this information—these semi-intangible assets—closer to our knowledge, innovation, and talent flows. Suddenly, I can code, write eloquently, and get excerpts from history for my blog posts with a flick of a finger. I can create beautiful images and exciting videos. All because old information is made available and brought to support my flows.

And now my bank application starts chatting with me like a human, helping me find the right services and later manage my finances. Services become elastic, constantly changing, and reacting to my flows. And the service has its own learning flow, developing with each interaction with all clients.

AI helps us to combine data sources. And then we can have a discussion with that data. We can become part of the data flow as we now understand it better.

In short, AI strengthens the role and increases the value of the intangible world in business. It does this by supporting the fundamental flow-like nature of the immaterial.



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