How Disruptive Will Generative AI Be?

In the latest AI Horizons Webinar, hosted by Wharton Human AI Research (WHAIR), Michael G. Jacobides, Sir Donald Gordon Professor of Entrepreneurship and Innovation at London Business School, joined Stefano Puntoni, Faculty Co-Director of WHAIR to discuss how generative AI is reshaping industries, business models, and organizations.

Here are the key takeaways from their discussion:

From Hype to Strategy

Jacobides opened the conversation by describing generative AI as a “weird technology,” one driven more by hype and investment enthusiasm than by business needs. Unlike past innovations built to solve specific problems, AI’s rise has often preceded its practical application. Yet at the same time, the technology was advancing fast with potentially radical implications down the line.

“The hype can mobilize action,” he noted, “but it can also blur judgment.” Organizations, he said, must focus on strategic value, not fear of missing out.

Puntoni agreed, emphasizing that AI’s true promise lies not in cost reduction, but in reinventing business models and creating new sources of customer value.

Beyond Efficiency: Embedding AI at the Core

Both speakers cautioned that limiting AI to productivity gains underestimates its potential. Drawing a historical parallel to electrification, Jacobides observed that early adopters initially replaced old systems with new technology but realized true benefits only when they redesigned entire processes, business models and industries around it.

Jacobides’s recent research supports this: organizations that use AI systematically in core operations (in engineering, risk, or customer engagement) see the greatest returns. “Writing emails is helpful,” he said, “but embedding AI in how the organization works is transformative.”

Complementarity, Not Substitution

Fears of widespread job loss, Jacobides argued, often miss the mark. He cited radiology as an example: despite predictions of automation, demand for radiologists has grown as AI expanded their capabilities.

“The question isn’t whether technology replaces a role,” he said, “but how it reshapes the value that role provides.” The most successful organizations will pair AI capabilities with human expertise to extend, not erase, value.

Building Adaptive Organizations

From a management perspective, the biggest barrier to AI adoption may be fear. Jacobides’s research shows that successful companies counter this through co-creation with domain experts, embedding AI in existing workflows and incentive structures.

He described two paths to progress:

• Evolutionary change, integrating AI within current systems; and
• Revolutionary change, reimagining structures and decision-making around AI’s possibilities.

Puntoni added that leadership imagination is critical: “AI challenges leaders to rethink how their organizations create and deliver value. It’s as much a human challenge as a technical one.”

Leading the Transformation

As organizations reorganize around AI, Jacobides noted, leadership roles are also shifting. Some firms are merging strategy, technology, and transformation functions under unified leadership to break down silos and accelerate impact. “To make AI productive,” he said, “you need strategic sense-making, technical literacy, and execution in the same conversation.”

Looking Ahead

Both experts predicted an uneven but inevitable transformation across industries, shaped by regulation, liability, and readiness. Yet success will depend on one consistent factor: combining technological insight with strategic clarity and human adaptability.

Quoting Theodore Roosevelt, Jacobides closed with fitting advice for business leaders navigating AI’s rapid evolution: “Keep your eyes on the stars and your feet on the ground.”