As the realms of AI, blockchain, and the metaverse continue to shape the landscape of business, Darden Professors Dennie Kim and Tim Laseter offer valuable insights for forward-thinking leaders. The duo advises business leaders to distinguish between overinflated expectations and the practical business cases that unlock tangible value in these transformative technologies.
Examining the past, the Gartner Hype Cycle serves as a reminder of the phases an innovation undergoes, from the initial excitement to potential failures and a subsequent waning interest. Yet, this doesn’t imply that the technology is merely a passing trend. Successful execution of innovative ideas is altering the trajectory of the future.
Artificial Intelligence (AI): Separating Hype from Reality
In 1955, the term “artificial intelligence” was coined, and by 1998, Forbes featured “Artificial Intelligence Gets Real” on its cover. Presently, generative AI tools such as OpenAI’s ChatGPT and Google Bard are disrupting traditional education models, with over 90% of software developers using AI to expedite coding tasks.
Blockchain: From Hype to Reality
Blockchain, a decentralized ledger system, experienced both hype and reality. In 2022, Paris Hilton endorsed her non-fungible token (NFT) on The Tonight Show, but by November, a cryptocurrency exchange filed for bankruptcy. However, by July 2023, Ukraine had raised over $200 million in aid through cryptocurrency contributions, showcasing blockchain’s potential for societal impact.
Augmented Reality (AR) and Virtual Reality (VR) Headsets: A Journey of Evolution
Sergey Brin’s 2012 introduction of Google Glass marked the hype phase, but enlightened developments came in June 2023 when Apple announced the release of its “spatial computing” Vision Pro, a 3D headset controlled by users’ eyes, voice, and hands.
The Metaverse: From Concept to Reality
Mark Zuckerberg’s 2021 announcement of renaming Facebook to “Meta” highlighted the metaverse’s potential. However, the gaming platform Roblox, founded in 2006, currently engages over 200 million monthly users, underscoring its tangible impact on virtual experiences.
Billions and Trillions: Navigating the Digital Landscape’s Value
Major analysts estimate that AI, blockchain, and metaverse technologies could contribute trillions to the global economy. McKinsey & Co projects that AI alone could add up to $4.4 trillion annually to global GDP.
However, amidst the potential, the duo warns against succumbing to hype and emphasizes the importance of firsthand experience. Business leaders are urged to engage with VR headsets, set up blockchain wallets, and interact with AI programs. This direct exposure is deemed a practical and crucial crash course in advanced digital literacy.
Preparing for the Future: Active Engagement in the Digital Landscape
Kim and Laseter encourage leaders to adopt an active stance, acknowledging the transformative power of these digital assets. While technology skepticism in the short term is acknowledged, an optimistic outlook prevails for the long term, especially considering the potential for new business models and approaches to shared value creation.
In conclusion, the future of business in the digital era hinges on leaders’ ability to discern hype from reality, embrace transformative technologies, and actively shape the trillion-dollar digital asset landscape. The dynamic interplay of AI, blockchain, and the metaverse presents not only business opportunities but also the potential for cultural and ideological shifts, providing an immense canvas for technology and business to drive positive change.
