24 AlixPartners Disruption Index 2023
In our view, though, productivity is only one blade of the
scissors. AI will also transform both work-making things
possible that couldn't be done before-and decision-making.
These two transformations are likely to be sources of new
growth (and new jobs.) New opportunities to generate
revenue are particularly compelling.
A digitally-empowered workforce-with AI at its center-
is the future of most, if not all, industries. Microsoft has
dubbed its new generative AI-powered tool as "copilot"
and OpenAI has introduced its own ChatGPT Enterprise
tools. AI is reinventing the private equity industry, from deal
sourcing to due diligence through to portco operational
improvements and exit strategies. These tools can also
help portfolio optimization by simulating various scenarios,
assessing potential risks and returns, and recommending
ways to optimize overall portfolio performance.
"Cobotics" allows people and machines to assist one
another in completing tasks that neither could accomplish
alone. Technologies like computer vision can spot problems
that people cannot; people, in turn, guide or correct the
technology based on experience. Doctors and AI together
can interpret images, lab results, and medical history to
customize a treatment plan.
As we saw above (key-finding #2) AI will change how
decisions are made, allowing companies to draw much
smarter and precise inferences from data, recognizing
patterns in supply, operations, and demand. Business
forecasting and scenario analysis can be improved
through AI's predictive modeling capabilities. By leveraging
AI algorithms, organizations can dynamically adjust
prices based on demand elasticity, market saturation,
and competitor pricing. Deeper insights into customer
segmentation, allowing them to target their marketing
efforts more effectively, can drive customer retention
and loyalty.
Over the long run, the true power of these technologies will
be in how they help unlock human potential and productivity.
This is truly an "Age of And" not "or". It is no wonder the
fastest-growing companies are also the most bullish about
AI's potential.