Artificial intelligence: Why a digital base is critical

Early AI adopters are starting to shift industry profit pools. Companies need strong digital capabilities to compete. The diffusion of a new technology, whether ATMs in banking or radio-frequency identification tags in retailing, typically traces an S-curve. Early on, a few power users bet heavily on the innovation. Then, over time, as more companies rush to embrace the technology and capture the potential gains, the market opportunities for nonadopters dwindle.