Informed i’s Weekly Business Insights

The companies that are truly innovating with AI aren’t winning just because of the tech they use—those tools are broadly available. Their advantage comes from how, and how fast, they apply technology to solving real business problems at scale. That requires new organizational capabilities that take time to build.

In the end, those capabilities become the true long-lasting competitive advantage that enables these companies to sustain a higher rate of innovation with technology.  These leading companies shared the following notable traits:

They focused on key economic leverage points. Two-thirds of the companies focused on three business domains or less. These business domains were always key economic leverage points where even small improvements by AI translated into material financial impact.

They built AI systems, not point solutions. These companies didn’t approach their transformation by just pushing a single technology lever (like gen AI). They defined the problem to be solved and from there they designed an AI system to improve business performance. These systems were composed of different solutions and underlying technologies.

They became cash accretive quickly. These companies became cash positive in one to two years on average. While they took longer to realize the full benefit (typically three to four years), they were smart in sequencing the build of their AI system to deliver low-hanging fruit that paid for the journey.

They made substantial investments and achieved high returns. These companies made substantial investments in transforming their business with AI, often in the range of $50 million to more than $200 million.

The ability of an organization to harness technology for business value is the competitive advantage, not the technology itself. The authros identified six core capabilities that successful companies build.

A C-suite team that gets AI.  A C-suite that understands AI is the most significant driver of success.  Successful top management teams understand that to create value with technology, they must focus their AI efforts where it matters, and they must use AI in a competitively differentiated way. Doing so requires strategic creativity to see what others do not. That’s hard.

Leaders on the front lines of change who have tech and AI muscles.  Because AI is so deeply embedded in a company’s operations and workflows, harvesting value from AI requires leaders who combine deep domain expertise, an understanding of technology and data, and an ability to orchestrate end-to-end change.

An operating model built for speed.  Rewired organizations embed tech delivery capabilities in the business to drive more effective and faster innovation cycles. They build platform capabilities to maximize reuse and support faster business innovation.

‘Technology as a platform’ to power the enterprise

Data that’s easy to consume

Designed for scale from the beginning.  AI systems create value only when they are adopted and scaled. That may sound obvious, yet it remains one of the hardest challenges.

“I feel set up,” said the CEO of a professional services firm, breaking the long silence after his presentation. The transformation he had envisioned — and his executive team had championed and worked on for three years — had failed to deliver returns, and the hope that his leadership had once inspired had soured into blame. We witnessed that scene toward the end of a four-year study of the leadership team that strategized and implemented that firmwide transformation. It was the anticlimax of a drama that we have heard many executives recount.

The script of that drama goes like this: The future is uncertain. Trends in the world, the market, or the industry call for radical change. Executives craft a vision of transformation centered on adopting new technology, new structures, or new ways of working. Plans and people are drafted; projects are put in motion. Those initiatives generate enthusiasm. Over time, however, tension and exhaustion ensue. Then resentment emerges, leading to disengagement and, in the worst cases — as in the one we studied — to the organization’s demise.

Analyses of such cases often highlight that transformations fail because people lack the awareness that change is needed or the motivation to pursue it.  The authors’ research uncovered what fuels that fire. It is anxiety, an emotion that can be mobilizing at first but becomes paralyzing if it is neglected and uncontained by leaders. It may then be organized in ways that keep everyone busy while the status quo endures.

Change may be the only constant, but anxiety is only human. When leaders lose the capacity to name, share, and manage anxiety, their efforts to organize change, and the work of people in the organization, can get co-opted to keep anxiety at bay. This covert function sabotages the overt aim of transformation. Th authors call that process defensive organizing.  Two conditions lay the foundation for defensive organizing. First, one or more executives identify with their organization. Second, the workforce trusts those executives’ competence and benevolence. Those conditions make leaders feel responsible and followers feel reliant.

Tracing the Path of Defensive Organizing.  Defensive organizing follows a route that begins with senior leaders and spreads across the organization as more people are drafted into the effort to keep anxiety at bay. The signs that you are being led down that route and find the exits at different points are the following:  the comforting vision.  The convenient foe.  The empty ritual.  Leading to the reckoning.

Working well with anxiety requires three capacities that leaders must cultivate within themselves and demonstrate around them: the courage to recognize anxiety, the curiosity to inquire about it with others, and the care to see and soothe distress.

Most leaders eventually hit the same wall. They may have a position, a title, and a winning track record, but at some point they will need to mobilize people who aren’t their direct reports, won’t be able to provide input into key decisions, or won’t have control over their budgets.

How do you get the results you want from employees, peers, and bosses when you have no formal authority over them? How do you make your voice heard when you’re not involved in every discussion? This is known as the indirect influence problem. It’s more common than many leaders realize—or are willing to admit—and most have no idea what to do about it.

Some push harder to exert what authority they do have, but this often triggers what the psychologist Jack Brehm dubbed reactance—the instinctive tendency to push back when you feel your autonomy is threatened. Decades of research across the fields of marketing, public health, and organizational psychology confirm the same finding: When someone tells people what to do, they often do precisely the opposite. 

Meanwhile, the conditions that once made workplace authority effective are changing including declining employee engagement, trust in employers declined work has become more distributed, specialized, and dependent on informal networks, such as Slack channels and alumni networks. As McKinsey reported, “New data tell us that there is no situation in which leaders need to follow the old maxim ‘Do it because I said so.’”

Today’s leaders need to find different ways to motivate and drive change so that team members choose to act instead of being forced. Drawing on two decades of research into what builds or destroys trust, including thousands of interactions with C-suite executives and management teams, the author has identified five paths that leaders can follow to wield indirect influence in high-stakes settings.

Path 1: Influence Spotter.  Power brokers aren’t always obvious. A C-suite or otherwise senior title is only one indicator.  Ask yourself: Whom does everyone look to for an opinion before making decisions? What matters to those leaders, and who shapes their thinking?  To recognize hidden sway:  Track decision processes, not job titles; watch where people look; notice who speaks first and most often; and spot calculated rule breaking.  This path is particularly useful when you suspect that what appears on the surface isn’t the full story. It is invaluable if you are new, lack clout, or face entrenched norms or informal coalitions and cliques. When visible doors won’t open, look for the confidantes, advisers, drinking buddies, golf partners, or other trusted voices.

Path 2: Back Channeler.   Back channels allow leaders to lower the stakes, protect egos, and explore options in psychologically safe conditions. They reduce reactance and open up real reflection.  To create a private connection:  notice when a back channel is needed, open the door without pressuring, ensure that the channel is useful, and start tentatively, then become firmer.  This path works only if the back channeler is a trusted party; otherwise, it can feel like a power grab—or worse, a threat. Use this approach when formal discussions are frozen, issues are charged, or relationships are tense. It should be a temporary measure, however, employed just long enough to open new possibilities before returning to transparent collaboration.

Path 3: Precision Mover.  Precision movers know not to act when people are experiencing the kind of anxiety, defensiveness, or anger that exacerbates reactance. Timing, phrasing, and intensity matter. Good points don’t land if they’re delivered at the wrong moment. It’s better to play the long game, reading moods and stress levels before springing into action.  To master strategic timing:

control the flow of information; leverage the power of silence; time your ask to the leader’s bandwidth; and notice when the discussion is overheating.  Precision movers are the most powerful when the environment is in flux and key players are feeling uncertain or confused. Ask yourself: Am I patient? Am I emotionally attuned enough to detect mood shifts? Can I withhold information until the time is right? If so, this path can deliver outsize influence.

Path 4: Connector.  There are two kinds of networkers: those who collect people like business cards—a human Rolodex built for extraction, activated only when they need something—and those who spend years making deposits they don’t expect to see returned. The first kind can fill a room with people; the second can move those people.  Connectors change outcomes by widening the field of options. Instead of pushing people toward solutions, they link the right people at the right time so that problems can be solved with better information and less defensiveness.  To harness networks effectively:  manage information boundaries, identify the gap you need to bridge, and translate before you connect.  The connector path is especially useful when you’re dealing with siloed teams, running a project that cuts across functions, or trying to realign a fractured group without triggering egos or resistance. It requires a leader with strong people skills.

Path 5: Pulse Reader.  Pulse readers notice not just what is said aloud but also where energy drops or attention converges, when silence carries weight, and how opinions are forming. They track shifts in alignment, hesitation, discomfort, and momentum. They consider the whole system. And they’re able to both diagnose and shift emotional currents to achieve strategic change.  To get a better read on your team:  create psychological safety first, connect emotionally before logically, carefully choose your words, and distill complex problems to their essence.  This path demands emotional intelligence. It is most successful when the vibe is off, group identity and cohesion are slipping, and anxiety or fear is warping decision-making. If people look to you for emotional cues, this is often the best approach.

After a 15-year run as Apple’s CEO, Tim Cook has handed the reins to longtime insider John Ternus. It marks the end of an era for the world’s most valuable company, as Cook moves into the role of executive chairman. And reflecting back on his time at the helm of the $4.75 trillion tech giant, Cook shares one daily leadership habit that pushed him to strive for success. 

“For the past 15 years I’ve started just about every morning the same way,” Cook shared in a community letter speaking on his tenure as CEO. “I open my email and I read notes I received the day before from Apple’s users all over the world.”  And he said it drove him to “work harder and push further.”

Since 2011, Cook has led Apple through a global pandemic, supply-chain upheaval, and the rise of AI—and has read thousands of messages about the products all along the way. Apple’s new executive chairman said customers would “share little pieces” of their world—from close calls caught by Apple watches, to capturing memories on their iPhones, to how their work has been changed since the dawn of the Mac computer. Whether it be heartfelt stories or complaints about the products, Cook says he combed through the messages daily, and said it’s been an “honor and a privilege” to lead the company building transformative tech.  “In every one of those emails I feel the beating heart of our shared humanity. I feel a sense of deepening obligation to work harder and push further,” Cook continued. “But most of all, I feel a gratitude that I cannot put into words, that I somehow got to be the person on the other end of those emails.”

Then after a one hour workout to manage his stress, Cook dives right back into what Apple buyers have to say. He begins his 5 a.m. ritual of 15 years: reading “the majority of” the 700 to 800 emails that hit his inbox everyday. While many CEOs would delegate their flooded inboxes to their assistants, Cook said that “It keeps my hands on the pulse of what customers are feeling and thinking and doing.”

Cook is one of many emails who have embedded emailing into their daily routine—while others have eliminated the burden altogether. 

CEOs are split on how to handle emails.  Just like Cook, billionaire Mark Cuban religiously checks his inbox—and his email is even available to the public.  Rather than sit through hours-long meetings, he prefers to sift through hundreds of messages; he starts his day checking his morning emails around coffee, showering, and taking his daughter to school. And just like the former Apple CEO, he gets in a workout session before getting back to his inbox. Having an assistant handle his messages would only “slow things down.”

Other business leaders are adamant on emailing around the clock—even if it bleeds into the weekend. Uber CEO Dara Khosrowshahi revamped the company’s work culture when he stepped into the role in 2017, quickly implementing new ways to turn things around. One such change included emailing back whenever the need arises. If employees are “not performing” well in the “really demanding” environment, then Khosrowshahi said they’ll be shown the door.   “Part of working hard is sending emails to the team on a Saturday,” the CEO of the $155.7 billion ride-hailing giant said on the Diary of a CEO podcast earlier this year. “And if I don’t get a response on Saturday, sending them an email on Sunday with a question mark. What’s going on?”

Brian Chesky, the cofounder and CEO of Airbnb, prefers to unplug. He runs the company on his own hours, doing away with morning meetings before 10 a.m., and rarely touching his inbox. Instead of shooting out emails, Chesky said he opts to call and text: “Don’t apologize for how you want to run your company.”

This September, as leaders gather in New York for the UN General Assembly and Climate Week, it feels like the world is running on overdrive: midterm elections in the U.S., big votes across Europe, COP31 and one summit after another. All of it is happening just as geopolitical trust seems to be running low.  They will bring agendas, data, declarations and increasingly powerful technology.  But trust? That’s getting harder to find.

We have become exceptionally good at convening people and surprisingly poor at creating the conditions for them to listen to one another.  Here are five lessons that the table and the ancient practice of convivium can teach us about leadership.

Build trust before you need it.​  Leaders often treat trust as the result of successful collaboration. It is the opposite: Trust is what makes collaboration possible.  We schedule the negotiation and expect relationships to follow. But the most important work often happens before the agenda begins.  Think about your calendar: How much time do you actually spend building relationships before you ever need a favor?

Hospitality is leadership.  Across cultures and centuries, people have gathered around tables to build alliances, overcome differences and pass on knowledge.  Food moves across the table, but so do stories, disagreements and responsibilities.  A table that happens once is an event. A table that becomes part of how you welcome, listen and work together becomes a method.  The table should not be the celebration at the end of the work; it is part of the work itself, a practice and ultimately a posture.  That is hospitality: creating the conditions for people to belong, contribute and take responsibility for one another.

Redesign the geometry of power.  Architecture is never neutral.  A podium puts all the focus up front. A boardroom keeps things stiff and formal. But a shared table? It invites us to actually look each other in the eye.  Complex challenges need different forms of intelligence.  Sometimes, who gets to speak just depends on where they’re sitting.

Treat culture as infrastructure.  People talk about the Mediterranean diet like it’s just a list of ingredients. But a large part of its real value is in the way people grow, cook, share and pass on knowledge, together.  At its core, it’s all about convivium, living together, gathered around the table.  The Mediterranean diet connects soil to health, biodiversity to economies, generations to knowledge and individual well-being to collective responsibility. In a way, it’s like a system of governance hiding in plain sight, as a meal.  Leaders often brush off culture as something “soft.” But it’s not.  Culture shapes what we care about, what we remember and whether we can actually pull together when it counts.

In the age of AI, presence is the scarce resource.​  AI can crunch numbers, model scenarios, translate languages and prep for negotiations. But as artificial intelligence gets smarter, the real human presence becomes even more valuable.  We’re still deeply human in ways AI can’t touch: We care, we trust, we listen, we share, we can change our minds and we can actually show up for each other.  AI can spit out a compromise, but it can’t choose to make one. It can optimize an agenda, but it can’t decide to stay at the table when things get tough.  Maybe that’s why the table matters even more now. Sharing a meal brings us back to the here and now, to other people, to our senses, to the simple truth that we all depend on each other.  The leaders who stand out in the next decade will be the ones who protect and practice what technology can’t replace: our ability to be deeply human, together.

Contributing to a business publication offers significant benefits. Entrepreneurs who share unique advice can build instant credibility, expand their audience, drive new business, land speaking gigs, and bring an entirely new network of people into their lives. Sharing expert knowledge also shows readers you know your industry well.

As a writing teacher, the author has had many entrepreneurswho  ask how they can land a column at a prominent publication. In 2017, so many people asked him that question that a colleague and he created a writing class—and even a business around it.  Accordong to him, if he was teaching that same class today, here’s a high-level idea of what he would teach my writing students.

Define your unique voice.  Everyone has something to teach others. As an entrepreneur, you’ve had many experiences. You’ve learned things that other founders haven’t yet discovered, and you can help current business owners with your distinctive advice. To begin, start making a list of lessons you’ve learned along your business journey so you can easily define the topics where you can stand out as an expert. Hone down the list to solid ideas that you think people would be interested in—and keep them on-hand for future articles.  If you have something to offer a magazine that has not been talked about before—even better.  If you have those special topics, use them. Once you have a solid grasp of what you want to write about, it’s time to pick up the pen.

Begin writing and keep a portfolio.  Start writing. You don’t have to be an exemplary writer. You need to know your information well, how to deliver it, and whom it will benefit most. For this kind of writing, you should not use AI because you are offering your personal guidance and advice. Writing with AI today can be quite tempting—however, nothing can replace you, your voice, and your particular information. Don’t be scared to put yourself out there. You can start by writing a newsletter on LinkedIn, practicing with different LinkedIn posts, or writing for publications such as Substack or Medium. Pay attention to who reacts to your work so you can start shaping your audience. Once you have a good list of articles, keep them in a portfolio so you can pitch an editor and land a byline.

Grow your online following.  As most writers experience, growing your following online takes a lot of work. The main thing I learned about growing an audience is that you have to be consistent and engage with your readers—this takes time, but it’s worth it. You shouldn’t post an article, walk away, and expect your viewership to climb on its own. When you write, respond to comments, engage with your audience, and share your work in as many applicable places as possible. Editors look for writers with a large audience because it is a win-win for everyone.  When starting, even if you are writing solid content that can make a difference, you still have to learn to be your own marketer—on top of the many other hats you will have to wear along the way.

Pitching an editor: the most important thing you need to know.  The most significant way to get an editor’s attention is to use the email subject line to your advantage. Editors are super busy, and they get pitches all day long—not only from their writers, but from outside sources as well. If you want to grab their attention, position your subject line to show your unique views, your different background, and even share your following. You want to make the editor’s job easier. You are a much better writing candidate when you can grab the editor’s attention immediately. It already shows you know how to get a reader’s interest too.

Every stage of business demands a different founder identity. The habits that build a $100,000 business aren’t the same ones that build a million-dollar company. AI can only answer based on the assumptions of the founder prompting the question today. If you’re asking AI questions from the beliefs, assumptions and constraints of yesterday’s business, don’t be surprised when it helps you build a more amplified version of yesterday’s problems.

As Marshall Goldsmith said, “What got you here won’t get you there.” The greatest risk of AI is that it can become the world’s most convincing confirmation-bias machine to your existing knowledge bank, which can cap your growth.

When AI starts agreeing with you too much.  AI can optimize a pricing, marketing and revenue strategy. It cannot tell you whether you’re optimizing the right business model or whether you’ve outgrown the mindset that created it. AI reflects your current operating system. It doesn’t upgrade it. It doesn’t initiate transformation. Transformation comes when existing biases, beliefs, skill sets, mindsets, attitudes, values, habits and strategies are challenged and questioned.  MIT researchers found that chatbots reinforce a user’s existing beliefs rather than challenge them. Even an idealized “perfectly rational” decision-maker could become increasingly confident in flawed assumptions simply because the chatbot consistently affirmed their thinking. The chatbot wasn’t asking, “What if your assumptions are wrong?” The danger was reinforcement. Dr. Keith Sakata, a psychiatrist at UCSF who has seen 12 patients hospitalized for “AI psychosis,” says AI isn’t “bad,” but it can “supercharge” people’s vulnerabilities.  Research suggests that users actually prefer chatbots that affirm their beliefs — even when that affirmation undermines better judgment. Agreement builds trust. Like attracts like, after all. Trust builds engagement. That’s a powerful and potentially dangerous combination for a founder who doesn’t question their own assumptions when the system is optimized to make you feel right.

The blind spot AI won’t find for you.  AI is exceptional at optimizing execution. It’s far less likely to ask whether you’re optimizing the wrong objective. As Elon Musk famously observed, “The most common error of a smart engineer is to optimize a thing that should not exist.” Engineering your business is no different.  The strategies that reward speed in the beginning eventually require discernment, stewardship and leverage. That’s why your prompts matter as much as your plan.

If you’re only asking AI, “How do I execute this revenue goal?” you’re assuming the strategy itself is sound. A better founder learns to ask AI to challenge the strategy and their own biases before optimizing it. Before you move forward on any major business decision, ask:  What assumptions is this strategy built on, and what could invalidate them?  What evidence would prove this strategy wrong?  What milestones need to exist first? What has to be true for this strategy to succeed?

In the age of AI, your competitive advantage isn’t information. Everyone has that — for free. Your job is to cultivate the discernment to ask better questions, challenge your biases and recognize who you need to become to build tomorrow’s business.  That kind of transformation rarely happens in isolation with just better prompts. It happens in proximity to people whose job isn’t to agree with you, but to challenge your thinking, expose your blind spots and call you into your next level.