AI won’t be coming to Corporate America anytime soon

Hot take: Everyone is wrong about AI and how quickly it will change Corporate America.

Here’s my theory why most large corporations will have to be dragged kicking and screaming to massive AI adoption:

Corporate America HATES change

Why do you think people are being dragged back into the office after 2 years of successfully working from home? Or why Microsoft literally has to stop supporting certain versions of Windows that are 20 years old? Corporate America is very slow to change, it means possible business disruption, more employee training and huge possible investments that might not have a quick return to show shareholders.

Corporate America has no incentive to downsize itself

Every Manager, Director, VP works to grow their fiefdom not shrink it. Imagine working 20 years to make VP and then going in front of your CEO to tell them that actually your department doesn’t need exist anymore because all the work can be done by AI. It’s not going to happen. What will happen is the impact of AI will be downplayed and the can will keep getting kicked down the road.

Corporate America is heavily subsidized by the government in the form of tax incentives, grants and other free money

They will figure out a way to get the government to pay them to keep their employees (think a massive, neverending PPP program). When AI is finally massively adopted it will mean huge, earth-shattering layoffs. Or will it? People need work and money needs to keep being pumped into the economy. Why not incentivize employers to keep their employees and get government money to do so?

Corporate America does not like risk

Right now AI is the wild, wild west. Deep fakes, copyright infringements, legal battles. There are lots of risks associated with AI that most companies won’t want to go near. Most large companies will take a wait and see approach and will use any sign of trouble to back away from any major changes.

AI will eventually conquer Corporate America but it won’t be as quick and widely adopted as most people think. Old School Corporate America is historically slow to change and AI adoption won’t be any different.

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