How Can Midsize Companies Compete in Artificial Intelligence (AI)?

 

General purpose technologies are defined as structures that affect the economic system extensively and cause radical changes in both production and consumption dimensions. Artificial intelligence (AI) is poised to create many new job opportunities and disrupt the traditional structures of entire industries.

 

What about medium-sized companies that do not have access to big data and artificial intelligence in this environment of change? It would be very accurate to say that they are at risk of falling behind compared to their competitors in the age of artificial intelligence.

 

 

In the age of AI, two very different categories of companies seem well-positioned to reap the benefits of AI:

 

 

Startup initiatives

 

Big billion dollar companies.

 

 

In areas such as healthcare, finance, retail, media, and cross-industry technology, AI initiatives are advancing extremely fast. Technology giants such as Google and Microsoft, as well as large traditional companies, are using artificial intelligence to digitize their business models and processes.

 

 

Considering these conditions, it is possible to foresee that medium-sized companies, many of which are family-run, will have difficulty keeping up with the artificial intelligence transformation. Earlier research* has documented how these companies have already had to contend with the "winner-takes-all" economy of the past decade. In the business world of the future, the struggle of companies will become more difficult with each passing day.

  

Given the importance of midsize businesses to national economies and employment around the world, it is vital to design how they can increase their competitiveness in the field of artificial intelligence.

 

One of the most important lessons to be drawn from Harvard Business Review's research is that companies trying to keep up with changes in the business world should consider joining forces by pooling data and talent in an AI-centric joint venture structure. 

 

Source:

 

https://hbr.org/2021/09/how-midsize-companies-can-compete-in-ai

https://hbr.org/2021/02/the-u-s-economy-is-leaving-midsize-companies-behind