🥞This Forbes article sparked some intense, breakfast-table conversation amongst our team this morning: how do we balance risk and reward when it comes to innovation?
Truly, the current rout in tech stocks—especially in the aftermath of Meta's large investments in AI with uncertain returns—brings a very important discussion into this industry.
With Meta's shares falling over 15%, sending jitters across the world's other major technology companies, it was another reminder of the topsy-turvy journey that is pioneering new technologies like AI.
🚀𝗪𝗵𝗲𝗿𝗲 𝘄𝗲 𝗹𝗮𝗻𝗱𝗲𝗱:
At Thirn, we understand that this road of AI implementation within business models is not a sprint in the implementation of the latest technology; it's rather a marathon filled with hurdles placed along the way. Meta's experience points to a balance issue common with most technology innovations: between investment and monetization.
That's a situation that's not uniquely theirs, though. Pretty much every company pushing the envelope on AI faces these same kinds of questions about when and how their investments will pay off.
💡 𝗪𝗵𝗮𝘁 𝗪𝗲 𝗖𝗮𝗻 𝗟𝗲𝗮𝗿𝗻:
𝗟𝗼𝗻𝗴-𝘁𝗲𝗿𝗺 𝘃𝗶𝘀𝗶𝗼𝗻 𝗶𝘀 𝘁𝗵𝗲 𝗸𝗲𝘆: A clear and long-term strategy beyond the thrill of the first implementation is needed for integrating AI successfully. It is the development of sustainable systems that help in pushing not only the technological frontiers but also in proving viable in the real economic sense.
𝗥𝗶𝘀𝗸 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁: the above approach is good diversification in approaches to risk mitigation. As turned out, even giants are not ensured from their vulnerability by the market reaction. Smaller firms have to stay flexible. They should be ready to change their strategies very quickly in line with feedback and fiscal realities.
🗝️𝗢𝘂𝗿 𝗞𝗲𝘆 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆
𝗦𝘁𝗮𝗸𝗲𝗵𝗼𝗹𝗱𝗲𝗿 𝗰𝗼𝗺𝗺𝘂𝗻𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗶𝘀 𝗵𝘂𝗺𝗮𝗻. As Mark Zuckerberg pointed out to investors, the form of communication to keep your stakeholders abreast and engaged with the progress and potential of new technologies is by doing it.
As we ideate further, this story is a reminder of the patience, perseverance, and adaptability that need to be factored in. A good reminder on this journey is the fact that AI is not all about creating front-line technology. It's really about crafting value that will stand up to market dynamics and investor expectations.
#AI #Innovation #TechIndustry #SoftwareDevelopment #BusinessStrategy
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