AI Is Destroying Traditional Business Thinking

Artificial intelligence (AI) is undermining many of our industrial age ideas – including the best ways to develop business models, investment strategies, and critical assets. The result is that many companies are playing with an outdated rulebook, and they are being punished by capital markets for it. The industrial age was, and remains, the foundation of business thinking for most organizations and their leaders, including Michael Porter's 5 P's and even some of the most notable Nobel Prize in Economic Sciences winners. The basics of how businesses and countries are managed and measured no longer bring the admiration of investors. One problematic management approach is accounting systems based on Generally Accepted Accounting Principles (GAAP), which classifies plant and property as assets, and people and intangible assets as expenses.