MIT Sloan Management Review Research Report on Expanding AI's Impact With Organizational Learning

Only 10% of companies obtain significant financial benefits from artificial intelligence technologies. Why so few?

Our research shows that these companies intentionally change processes, broadly and deeply, to facilitate organizational learning with AI. Better organizational learning enables them to act precisely when sensing opportunity and to adapt quickly when conditions change. Their strategic focus is organizational learning, not just machine learning.

Organizational learning with AI is demanding. It requires humans and machines to not only work together but also learn from each other — over time, in the right way, and in the appropriate contexts. This cycle of mutual learning makes humans and machines smarter, more relevant, and more effective. Mutual learning between human and machine is essential to success with AI. But it’s difficult to achieve at scale.

About the Author

Sam Ransbotham (@ransbotham) is a professor in the information systems department at the Carroll School of Management at Boston College, as well as guest editor for MIT Sloan Management Review’s Artificial Intelligence and Business Strategy Big Ideas initiative.

Shervin Khodabandeh is a senior partner and managing director at BCG, and the co-leader of BCG GAMMA (BCG’s AI practice) in North America. He can be contacted at shervin@bcg.com.

David Kiron is the editorial director of MIT Sloan Management Review and is program lead for its Future of the Workforce and Artificial Intelligence and Business Strategy projects. He can be contacted at dkiron@mit.edu.

François Candelon is a senior partner and managing director at BCG, and the global director of the BCG Henderson Institute. He can be contacted at candelon.francois@bcg.com.

Michael Chu is a partner and associate director at BCG, and a core member of BCG GAMMA. He can be reached at chu.michael@bcg.com.

Burt LaFountain is a partner and managing director at BCG and a core member of BCG GAMMA. He can be reached at lafountain.burt@bcg.com.

Learn more about MIT SMR.