Fight, flight or freeze: How do you respond to the threat of GenAI?

Since the explosion of generative AI early last year, the digital industry has been grappling with the impact of such a significant technological disruption. With global investment in AI set to rise to over $800 billion by 2030, businesses large and small face opportunities, but also threats.

AI tools have the potential to completely disrupt 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 quickly adapt and leverage AI. Gartner found that 30% of GenAI projects are expected to be abandoned by 2025, yet only 7% of companies believe they will meet or exceed their digital transformation goals. What is one factor contributing to this gap?

While AI is advancing rapidly, it will not be perfect. We need to be aware of both the potential and the pitfalls of this phase – when it gets it right and when it gets it wrong. A recent think tank report even called for a system to record AI misuse and malfunctions in order to learn from the technology and use it successfully. But we cannot sit idly by and wait for government and policymakers to act. Organizations need to apply their own guardrails and good judgement to truly reap the benefits of this technology.

When faced with a threat, organizations typically respond in one of three ways: fight, flight, or freeze.

Mark Rodseth

VP of Technology, EMEA at CI&T.

Battle

Companies in “fight mode” are proactive in their adoption of GenAI. They recognize the transformative potential of GenAI and are determined to integrate it into their operations. In fact, four in 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, establishing a dedicated GenAI task force to ensure each initiative aligns with broader strategic goals. This involves thorough planning, prioritizing high-impact areas, and appropriate resource allocation. Starting with small, focused experiments allows them to learn quickly, achieve early success, 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 uncoordinated or uncoordinated leadership. Without a unified vision, different departments may pursue their own GenAI projects in an uncoordinated manner, leading to inefficiencies and wasted resources. In addition, the lack of clear metrics for success can lead to confusion about the impact and value of these initiatives, making it difficult to justify investments.

Flight

In “flight” mode, organizations show a more cautious or negative attitude toward adopting GenAI. Some view GenAI as a distraction from their primary goals and objectives and fear that it could divert resources and focus from core activities. Others are skeptical about the potential value that GenAI can add to their existing products or services and doubt the maturity or relevance of the technology for their specific industry.

Another common concern is fear of job loss. Employees may fear that the automation and efficiency gains brought about by GenAI could jeopardize their job security. In addition, some may dismiss GenAI as overhyped and prefer to wait until the technology is more widely deployed before investing in it. Finally, concerns about the risks associated with GenAI, including ethical issues and the potential for misuse, may also lead to a “flight” response.

While these concerns are partly valid, if they lead companies 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 stuck due to various internal obstacles. Many organizations fall into this category for several reasons.

Some organizations may already be in the midst of other important transformation initiatives that take priority, such as becoming more lean or agile, or moving to a product-centric or data-driven approach.

In addition, organizational silos and the use of outdated legacy technologies can hinder progress. Fragmentation of teams can lead to duplicated efforts, inconsistent strategies, and a lack of shared understanding of the benefits of GenAI, while legacy IT infrastructure would require costly and time-consuming upgrades to incorporate GenAI.

Additionally, due to privacy, intellectual property, or regulatory compliance concerns, legal and compliance teams may impose strict policies or ban GenAI use altogether.

Develop an effective action plan

Given these response modalities and assuming that action is needed, what do organizations need to do to move into action mode while adding value to the organization?

To use GenAI effectively, companies should first educate and educate executives about its potential and risks. Establishing a central team to manage GenAI initiatives is critical. Starting with small, focused pilot projects can demonstrate value and feasibility. Implementing metrics to track and show the impact of GenAI efforts can help gain greater stakeholder buy-in.

By mastering these initial steps, organizations can move toward an effective action plan to realize the transformative potential of GenAI.

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This article was produced as part of TechRadarPro's Expert Insights channel, where we highlight the best and brightest minds in technology today. The views expressed here are those of the author and do not necessarily reflect those of TechRadarPro or Future plc. If you are interested in contributing, you can find out more here:

Fight, flight or freeze: How do you respond to the threat of GenAI?

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