Rethinking AI in Our Organizations

I had the privilege of listening to Ethan Mollick speak at TEDAI, and his perspectives on the impact of artificial intelligence on work and organizations. His talk provided a valuable understanding of AI in the workplace.

If you’re not familiar, Ethan is an Associate Professor at the Wharton School of the University of Pennsylvania. He specializes in innovation and entrepreneurship and has extensively examined the effects of AI on work and education.

His book on AI, Co-Intelligence, is a New York Times bestseller, and his research has been featured in top journals and major media outlets like CNN and The Wall Street Journal.

Ethan's shared several key themes that are critical for any organization navigating the rapidly evolving landscape of AI.

AI's Staggering Impact on Productivity

Ethan highlighted that AI has demonstrably improved individual worker performance across various tasks and industries:

• Work Quality: 40% higher

• Speed: 26% faster

• Output: 12.5% more

To put this into perspective, he noted, "The Industrial Revolution increased productivity per person by 18-20%." The potential magnitude of AI's impact is comparable to one of the most significant shifts in human history.

The Disconnect Between Potential and Realized Benefits

Despite these promising numbers, many executives and managers report not seeing significant benefits from AI implementation. Ethan questioned this discrepancy:

"Why is there such a disconnect between AI's potential and its realized impact in organizations?"

It appears that while AI's capabilities are immense, organizations are struggling to integrate it effectively.

Outdated Organizational Structures

One core issue is that our traditional organizational structures, largely unchanged since the 19th century, are ill-equipped to harness AI's potential. Ethan pointed out:

"We're still using org charts in the exact same way today... relying solely on human judgment and decision-making, while AI remains an underutilized asset."

This reliance on human-centric structures limits our ability to fully leverage AI as a transformative tool.

The Need for New Organizational Models

To truly integrate AI, we need to reimagine our workflows and structures to accommodate this new "co-worker." Ethan emphasized:

"We don't have established best practices yet; it's uncharted territory requiring experimentation and innovation."

This lack of a roadmap means organizations must be willing to pioneer new methods of AI integration.

Empowering Employees as Innovators

Our employees are our greatest asset in this journey. Ethan stressed the importance of viewing employees as valuable partners in AI adoption:

"They are the experts who can drive innovation from within... Innovation has to come from your crowd."

By empowering them to experiment with AI, we can unlock new levels of productivity and creativity.

Moving Beyond Cost-Cutting Mindsets

Historically, new technology has often led to increased efficiency and layoffs, creating fear among employees. Ethan highlighted:

"Focusing solely on cost-cutting and efficiency can create fear of job displacement, discouraging employees from embracing AI. We have a choice to make."

Instead of viewing AI as a means to replace human workers, we can choose to use it to expand and create new value.

Embracing AI for Growth and Expansion

Drawing parallels with how Guinness leveraged the steam engine to expand globally, Ethan illustrated the potential for growth:

"AI presents an opportunity for growth and expansion, creating a more prosperous future for all stakeholders."

By focusing on expansion rather than just cost reduction, organizations can achieve greater long-term success.

A Call to Rethink the Human-AI Relationship

Ethan's closing message was a powerful call to action:

"Let's rethink our approach to AI. Instead of viewing it as a replacement for human workers, let's see it as a tool to empower our employees and customers."

By shifting our perspective, we can harness AI's full potential and thrive in this new era.

Final Thoughts

Ethan Mollick's insights challenge us to reconsider how we approach AI within our organizations. The potential benefits are enormous, but realizing them requires a fundamental shift in our mindset and organizational structures.

As someone who was deeply moved by Ethan's talk, I believe it's imperative that we start this conversation within our own companies. It's not just about adopting new technology but about fostering a culture that empowers every employee to be an innovator.

So, what steps is your organization taking to integrate AI in a way that empowers employees and drives growth?

Let's embrace this opportunity to innovate and grow together.

Ethan Mollick is an Associate Professor at the Wharton School of the University of Pennsylvania. He studies and teaches innovation and entrepreneurship and examines the effects of artificial intelligence on work and education. His work has been widely recognized and cited, making significant contributions to our understanding of AI's role in modern organizations.

Join the Movement

I hope this has encouraged you in a small way to Be Unstoppable!

P.S. If you found this newsletter insightful, feel free to share it with a colleague or a friend who could benefit from these ideas. Or just pass along this link https://newsletter.nectarflow.com/subscribe 

Together, we can shape the future of the multifamily industry—one conversation at a time.

Stay Unstoppable!

Patrick Antrim
Founder & CEO
nectarflow.com

About the Author:
Patrick Antrim is the Chairman of the Multifamily Innovation® Council and the Founder and CEO of nectarflow.com, a productivity platform to bring together AI, automation, and data in your business providing a marketplace to reduce IT spend, consolidate operations, reduce costs, integrate point solutions, and increase margins for Multifamily companies.

With a focus on reducing IT spend, consolidating operations, and increasing margins for multifamily companies, nectarflow™ offers a unified AI and automation platform that brings everything together—from native CRM and custom company AI agents to marketing automation and open API integrations.

An MIT-certified expert in Applied Generative AI and Digital Transformation, Patrick has built nectarflow™ into an industry-leading platform that empowers business owners and operators to bring AI and automation into their companies. With over a decade of experience producing executive-level multifamily events like the Multifamily Innovation® & AI Summit and the Multifamily Women® Summit, he is a thought leader on the future of work and how technology can help build great careers and businesses.

Patrick's extensive industry experience includes managing $1.2 billion in multifamily apartment portfolios, scaling a management company across 13 states. He has advised proptech companies on go-to-market strategies and founded the Best Places to Work Multifamily® Research and Awards program.

He has managed real estate portfolios and launched businesses for influential investors such as Tony Robbins, John Saunders, Dean Graziosi, and The Hon. George Argyros. Passionate about leveraging AI as the greatest tool for business operators, Patrick helps multifamily investors, operators, and business owners build efficient, profitable revenue growth through innovation and technology.