00:00These are the three biggest mistakes I'm seeing companies make with AI.
00:03As a Yale professor who studies innovation, I've been watching AI closely,
00:06and these are the three approaches I'm seeing that cause more problems than solutions.
00:11First, forcing employees to use AI.
00:13AI has a reliability problem.
00:15It breaks, it hallucinates, and sometimes it does things that you don't want it to do.
00:19Earlier this year, a meta-security researcher actually had her AI
00:24delete her entire inbox even after she explicitly told it not to do anything of the sort.
00:29If even tech researchers can't use these tools reliably,
00:32why are executives forcing everyone to do it?
00:36Two, blaming layoffs on AI when employees, and really everyone, knows that that's not really true.
00:42Even Sam Altman has admitted that it's happening.
00:43There's some AI watching where people are blaming AI for layoffs they would otherwise do.
00:47There's a real lack of clarity over what AI can accomplish,
00:51who it's going to benefit, and who it's going to harm.
00:53Executives should stop scapegoating AI to cover for their own mistakes.
00:57Three, treating AI as a technical challenge when it's really a managerial one.
01:02Revolutionary innovations like AI make their impact by fulfilling what I call dark demand.
01:08That's jobs that people have to do that there's just nothing on the market
01:11that's good enough or affordable enough to fulfill their needs.
01:15Think back to the invention of Bessemer Steel.
01:17When Henry Bessemer invented his steel production process,
01:20steel was so expensive that it was really only used for things like watch springs and swords.
01:24Then he invents much, much cheaper steel, and it doesn't leak into the market.
01:29It explodes.
01:30And steel becomes the foundation of the entire world.
01:33In fact, today, there is one ton of steel made on Earth every year for every four people.
01:40AI is not going to be an innovation that just comes in and does stuff that we already do just
01:47a little bit better.
01:48That's not what revolutionary innovations look like.
01:50They happen when we discover whole new applications that would never have occurred
01:54before we had the new tool in our hand.
01:56The only way we can discover these applications is if executives free up their employees
02:00to experiment, to learn, to play, and to reinvent the way they do their jobs around these new capabilities.
02:07So then we come back to what they do.
