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cloud.google.com·7h ago
AI Research
arXiv CS.AI·27d ago·5 min read
Pilot Early, Commit Late: A Real-Options Model of Enterprise AI Adoption under Rapid Technological Progress
TL;DR
A new decision model for AI adoption suggests that firms should pilot AI technologies early while delaying full commitment to maximize learning and minimize risks associated with rapid technological changes.
✦ Why It Matters
Consider piloting AI solutions to build capabilities without committing to full deployment immediately.
Key Takeaways
- Evaluate the uncertainty of AI technologies before deciding on deployment.
- Consider piloting as a way to gain insights without full commitment.
- Monitor the pace of technological advancements to inform your strategy.
- Balance immediate operational needs with long-term learning opportunities.
How It Works
The model distinguishes between three strategies: immediate deployment, limited piloting, and waiting. Immediate deployment provides current value but risks becoming outdated.
Waiting allows firms to observe technological advancements before committing. Piloting enables firms to learn and adapt without fully committing to a technology, thus preserving flexibility.