"At the World Economic Forum annual meeting in Davos, Switzerland, Nadella sat for a conversation with the Forum's interim co-chair, BlackRock CEO Larry Fink, explaining that if AI growth spawns solely from investment, then that could be signs of a bubble. "A telltale sign of if it's a bubble would be if all we are talking about are the tech firms," Nadella said. "If all we talk about is what's happening to the technology side then it's just purely supply side.""
"However, Nadella offers a fix to that productivity dilemma, calling on business leaders to adopt a new approach to knowledge work by shifting workflows to match the structural design of AI. "The mindset we as leaders should have is, we need to think about changing the work-the workflow-with the technology.""
AI growth concentrated only in technology firms and driven primarily by investment can indicate a bubble. Businesses need to redesign workflows to align with AI's structural design in order to capture productivity gains. The 1980s computing revolution created a class of knowledge work by using computers to amplify tasks; AI is expected to produce a similar transformation. AI inverts information flow inside organizations, replacing slow hierarchical processes and forcing leaders to rethink organizational structures and workflow design to realize broad-based economic benefits rather than supply-side gains alone.
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