The rise of generative AI has reached a tipping point. Most organizations are either already using it to some degree or are in the process of adopting it. Yet, there is significant uncertainty about how AI will impact individuals, organizations, and society. It’s time to explore digital literacy.
As Wharton professor Ethan Mollick remarks in his recent book, “I can assure you that nobody has the complete picture of what AI means, and even the people making and using these systems do not understand their full implications.”
Given this uncertainty, how should organizations and individuals act in the near term? Here are five key strategies, drawing on historical insights and contemporary best practices, to help you increase your digital command and literacy.
1. Learn from Historical Parallels
Technological innovations are not new. Organizations have been mechanizing and automating jobs for centuries. History teaches us that change is typically gradual and often requires a reconfiguration of several elements to fully benefit from new technologies. It’s not enough to introduce a single tool. To increase digital literacy, you must also change the social system and business model around it.
Action Steps:
- Study Past Innovations: Look at how past technological changes were managed and what lessons were learned.
- Reconfigure Systems: To fully leverage AI, be prepared to adjust not just your tools but also your workflows, team structures, and business models.
2. Engage in Environmental Scanning
With new AI tools and upgrades being introduced almost weekly, keeping up with these developments can be overwhelming for individual employees. An organizational response is necessary to help everyone increase their digital literacy. Environmental scanning, the activity of acquiring external information, should be formalized. Assigning a team or individual the responsibility of observing and evaluating AI developments can help your organization stay ahead.
Action Steps:
- Establish a Scanning Team: Form a dedicated team or assign an individual to monitor AI trends and innovations.
- Regular Updates: Ensure the scanning team provides regular updates and insights to the rest of the organization.
3. Embrace Scenario Planning
High uncertainty means we cannot predict outcomes with precision. However, we can become more future-proof by increasing digital literacy and considering alternative scenarios while also imagining different outcomes. Leaders need to spend time on this task, discussing the results of environmental scanning and considering the potential threats and opportunities for the organization.
Action Steps:
- Conduct Workshops: Organize scenario planning workshops to explore various future scenarios.
- Develop Contingency Plans: Create plans for different scenarios to ensure your organization can adapt quickly to changes.
4. Prioritize Experimentation
We do not yet know where generative AI will be most effective or exactly how it should be implemented. In such situations, experimentation is vital. Start with small-scale experiments to test AI applications and then scale them up based on the results.
Action Steps:
- Pilot Projects: Implement AI in a specific area as a pilot project. Make it safe to ask questions and engage in digital literacy.
- Measure Outcomes: Use tools to estimate productivity increases and evaluate the results of your experiments before scaling up.
5. Foster Psychological Safety
The introduction of AI can create anxiety and resistance among employees, especially in areas where jobs and processes are at risk. Leaders must actively involve employees in the development and implementation of new AI processes. Seeking their input and allowing them to participate in pilot projects helps fine-tune the technology to fit operational needs better and gives employees a sense of control and ownership over the changes.
Action Steps:
- Involve Employees: Include employees in AI development discussions and pilot projects.
- Provide Support: Offer training and support to help employees adapt to new technologies.
Conclusion
Increasing your digital command and literacy is essential in today’s AI-driven world. By learning from historical parallels, engaging in environmental scanning, embracing scenario planning, prioritizing experimentation, and fostering psychological safety, you can navigate the uncertainty and harness the full potential of AI. Take proactive steps today to empower yourself and your organization for a digitally enhanced future. Embrace the opportunities that AI offers, and lead the way in transforming your business with confidence and foresight.
