Where does the value lie?
A strategic model categorizing how organizations engage with AI. While Advancing gets the hype, most economic value lies in Adopting and Adapting.
arrow_upward Difficulty & Cost | Volume of Users arrow_downward
Adopt
The User Tier
info Definition
Deploying 'off-the-shelf' or ready-made AI solutions without modifying the underlying technology.
checklist Requirements
- check_circle Robust digital infrastructure (electricity, internet).
- check_circle Basic digital literacy.
- check_circle No specialized AI engineers needed.
trending_up Strategic Value
Fastest and most cost-effective way to boost productivity. Captures 'consumer surplus' of existing tech.
lightbulb Example
"A hospital using standard diagnostic software, or a business using ChatGPT Enterprise for drafting emails."
Trade-off Analysis
Adopt
Low Cost-
payments
Cost & Difficulty Low
-
engineering
Primary Activity Procurement & Application
-
flag
Goal Solve immediate practical problems.
Adapt
Moderate-
payments
Cost & Difficulty Moderate
-
engineering
Primary Activity Fine-tuning & Engineering
-
flag
Goal Make global tech work for local reality.
Advance
Very High-
payments
Cost & Difficulty Very High
-
engineering
Primary Activity R&D, Core Engineering
-
flag
Goal Push boundaries of what is possible.
Avoid the Resource Trap.
For most entities, trying to Advance is a trap. The smartest strategy is to build a wide base of Adoption to boost general productivity, while selectively investing in Adaptation where local needs cannot be met by off-the-shelf tools.