Archive · 23 Jan 2026
AI's Business Challenge: Reorganization Over Technology
A recent survey by IBM found that many business leaders are excited about AI but aren't sure how it will make money.
This isn't surprising because new technologies often start by improving existing processes before completely changing them.
For example, when electricity was first used in factories, it didn't immediately transform them.
The real change came later when factories were redesigned to take full advantage of electric power.
Similarly, AI is now moving beyond just automating tasks to completely redesigning how businesses work.
This can be difficult and expensive, but companies that don't adapt risk falling behind.
The key is to be open to new possibilities and not get stuck on old ways of doing things.
79% of executives expect AI to significantly contribute to revenue, but only 24% clearly see where that revenue will come from.
AI's greatest business challenges are managerial, not technological, requiring businesses to reorganize operations.
Historical example: Electricity initially had limited impact on factories until they were redesigned around it.
AI is moving from automating tasks to redesigning processes, products, and decision-making.
Companies that only use AI for cost-cutting may miss out on new business models enabled by AI.
- Who
- 2,000 executives surveyed by IBM
- What
- AI's impact on business operations and revenue
- When
- Survey conducted recently, looking ahead to 2030
- Where
- Global, as the survey includes executives from various industries
- Why
- To understand the expectations and challenges of AI integration in businesses
- Survey Participants
- 2,000 executives
- Expected AI Revenue Contribution
- 79%
- Executives with Clear AI Revenue Vision
- 24%
- AI Spending Shift
- From efficiency gains to product and service innovation
- Historical Example
- Electricity in factories (late 19th and early 20th centuries)
- AI's Current Phase
- Inching out of replacement phase into re-architecture phase
- Author
- Bloomberg Opinion columnist