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AI, productivity,
innovation and
sustainability
Dr. Robin Teigland
January 2024
Today
• How can AI drive productivity and innovation?
• AI innovation exercise
• AI for sustainability
• Challenges and risks with AI
Ungoverned incompetence
Occurs when leaders try to
make the right decisions yet
end up making the wrong
ones due to a lack of
competence (Cebon 2017)
The future?
Conway 2003
What we don’t know
we don’t know
What we know
What we know
we don’t know
The 30% rule
You only need about 30% fluency in a
few technical topics to develop your
digital mindset
to make sense of and make use of data
and technology and
to enable you to see new possibilities
and chart a path for the future.
AI
The frontier of
computational advancements
that references
human intelligence in addressing
ever more complex decision-
making problems.
Berente et al 2021
Future
value
creation
Political Economic
Sociological
Technological
Environmental
Legal
Security
PESTELS
Teigland 2024
Generative AI
Rutschi et al., 2023
Generic Exclusive
General model
Open data
Custom model
Open data
Open model
Confidential data
Custom model
Confidential data
Brynjolfsson et al., 2023
GenAI at work
+14%
Productivity
Dell’Acqua et al., 2023
GenAI at work
-19%
Productivity
+17-43%
Productivity
Henna
Hotel
Japan
AI loves three-legged chairs – Space10/IKEA
Moving frontier of next
generation computer
advances
SCOPE
PERFORMANCE
Rutschi et al., 2023
Decreased
productivity
Increased
productivity
Increased
productivity
Decreased
productivity
AI & building regulations
• Identify code violations
• Correct violations
• Monitoring and
inspection in real time
Urban planning with AI
Policy documents
Research
Building permits
Henhouse & Mindlabs, NL
The challenge
Lack of engagement at work
Costs employers
USD 8.8 trillion, or
9% of global GDP
https://www.gallup.com/workplace/393497/world-trillion-workplace-problem.aspx
Improving work design
through GenAI prompts
• Design high-quality work
that enhances positive team
interaction and collaboration
for sales team.
• Design work that is
meaningful to facilitate
employee acceptance of
technological changes in
their work.
Zhang & Parker, 2023
Innovation
Designing the
innovation process
and conducting
innovation steps
Designing AI-based
innovation tools to
augment humans or to
be autonomous
As AI tools do more of the creative part of knowledge work,
humans do the integrative sensemaking.
-Verganti et al. 2020
Product innovation process
1. Opportunity identification and idea
generation
2. Idea evaluation and selection
3. Concept testing and solution development
4. Commercialization and launch
Rogers 2003
Compound
prompting
AI innovation exercise
1. Find examples of recent AI innovations within your
industry.
2. Discuss the following:
– What is the innovation’s objective?
– What internal and/or external data were/are needed for this
innovation?
– What challenges are there to successfully implementing this
innovation?
– What did AI do versus humans?
A firm (organization) that is
successful at innovation
generally is successful
at Al deployment.
- Ringel et al., 2019
Innovation capabilities
Clear top-
management buy-in
Show that ready to redesign business models and end-to-end processes
across whole organization
Cross-functional,
diverse teams
A must-have to ensure the adoption of safe and beneficial technology
Strong feedback
loops
Ensure iterative development process in close connection with relevant
internal and/or external stakeholders
Innovation culture Develop a "succeed fast" approach to innovation that focuses on finding
unmet real needs
Training and hiring
programs with
innovation at core
Create an engaging work environment that enhances employee
experience, incubates ideas and encourages creative thinking
Torre, Engstam, & Teigland, 2020
The challenges of AI innovation
Data
Generativity
Responsible AI
X Innovation network
Partnership
Ecosysystem
Alone
or
or
or
Increasing
complexity
“Our starting point is not
ocean data but rather
ocean challenges and how
ocean data can address
those challenges. ”
Predict
spread of
invasive
species?
University
Public
sector
Industry
Global quadruple helix for data-driven innovation
Invasive species Dikerogammarus villosus
Can ML help us predict areas in
the Baltic Sea that would be
suitable for the Killer Shrimp?
Predicting spread of an invasive species
Presence validated
Predicting spread of Killer Shrimp
Datasets
1. Port locations in Europe (EMODNET
Human Activities)
2. Ocean surface temperatures and
salinity for Baltic Sea (SMHI) and
North Sea regions (SeaDataNet) as
well as general (Marine Copernicus)
3. Presence data of D. Villosus from
observations ranging from 1928-
2019 (GBIF)
4. Marine data layers (Bio-Oracle)
Features
1. Salinity levels (mean 0 - 2 m)
2. Surface Temperature
3. Depth
4. Substrates
5. Exposure (waves)
Our process
• Problem formulation
• Data collection
• Data preparation and
cleaning
• Building and fitting the
models
• Evaluating model
• Interpreting model output
• Continuing until output is
actionable
Time
spent
Predicting
harmful algal
blooms
GDPR
The challenges of AI innovation
Data
Generativity
Responsible AI
X Innovation network
Partnership
Ecosysystem
Alone
or
or
or
Increasing
complexity
AI innovation capability
• Ensure shared understanding of purpose and
motives behind AI innovation
• Enable an adaptable organizing vision
• Align perspectives of AI technology’s potential
• Align and realign AI innovation objective with
capabilities, data, and resources over time
• Ensure responsible AI
Why?
What?
How?
AI innovation ecosystem
Innovation
Strategy
Organizational
Structures
AI Skills
Exploit
Which partners fit
your strategy?
How important
are ownership
and control?
What skills do
you want to
build inhouse?
Explore
Closed Open
Inhouse External
Twin Transition – Key to Sustainable Development
weforum.org
http://www.regenvillages.com/
Personalized carbon footprint tracker
Blockchain-based
marketplace enabling
companies to purchase
carbon removal certificates
directly from farmers
practicing regenerative
agriculture.
AI as enabler and inhibitor of SDGs
Vinuesa et al., 2020
ICTs as % of
Global Energy
Demand
2020 – 1%
2030 – 20%
AI can be biased
wherever a human can be biased.
https://www.bloomberg.com/graphics/2023-generative-ai-bias/
AIRS - AI/ML Risks and Security
https://ai.wharton.upenn.edu/white-paper/artificial-intelligence-risk-governance/
Jail breaking, assisting scamming, data poisoning
Risk of a
more
narrow
solution
space
with AI
Gary Gensler, Chair of SEC
• Guiding AI Operational Capabilities
– Harvesting & analysis of big data in a data
strategy
– AI-driven innovation strategy
– Participation and growth in a business
ecosystem
• Supervising AI Governance Capabilities
– Data management, ethics, & black box
decision-making
– AI cybersecurity
– Participation and leadership in a business
ecosystem
https://www.amazon.se/AI-Leadership-Boards-Corporate-Governance/dp/B08XZ457K1
Robin Teigland
www.robinteigland.com
www.slideshare.net/eteigland
robin.teigland@gmail.com
Mafalda de Freitas
Circular Ocean
mafalda.df@gmail.com
www.circularocean.pt
If you love knowledge, set it free!

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AI, Productivity, Innovation, and Sustainability

  • 2. Today • How can AI drive productivity and innovation? • AI innovation exercise • AI for sustainability • Challenges and risks with AI
  • 3. Ungoverned incompetence Occurs when leaders try to make the right decisions yet end up making the wrong ones due to a lack of competence (Cebon 2017)
  • 4. The future? Conway 2003 What we don’t know we don’t know What we know What we know we don’t know
  • 5. The 30% rule You only need about 30% fluency in a few technical topics to develop your digital mindset to make sense of and make use of data and technology and to enable you to see new possibilities and chart a path for the future.
  • 6. AI The frontier of computational advancements that references human intelligence in addressing ever more complex decision- making problems. Berente et al 2021
  • 8.
  • 9.
  • 10.
  • 11.
  • 13. Rutschi et al., 2023 Generic Exclusive General model Open data Custom model Open data Open model Confidential data Custom model Confidential data
  • 14. Brynjolfsson et al., 2023 GenAI at work +14% Productivity
  • 15. Dell’Acqua et al., 2023 GenAI at work -19% Productivity +17-43% Productivity
  • 17. AI loves three-legged chairs – Space10/IKEA
  • 18. Moving frontier of next generation computer advances SCOPE PERFORMANCE Rutschi et al., 2023 Decreased productivity Increased productivity Increased productivity Decreased productivity
  • 19. AI & building regulations • Identify code violations • Correct violations • Monitoring and inspection in real time
  • 20. Urban planning with AI Policy documents Research Building permits Henhouse & Mindlabs, NL
  • 21.
  • 23. Lack of engagement at work Costs employers USD 8.8 trillion, or 9% of global GDP https://www.gallup.com/workplace/393497/world-trillion-workplace-problem.aspx
  • 24.
  • 25.
  • 26. Improving work design through GenAI prompts • Design high-quality work that enhances positive team interaction and collaboration for sales team. • Design work that is meaningful to facilitate employee acceptance of technological changes in their work. Zhang & Parker, 2023
  • 27. Innovation Designing the innovation process and conducting innovation steps Designing AI-based innovation tools to augment humans or to be autonomous As AI tools do more of the creative part of knowledge work, humans do the integrative sensemaking. -Verganti et al. 2020
  • 28. Product innovation process 1. Opportunity identification and idea generation 2. Idea evaluation and selection 3. Concept testing and solution development 4. Commercialization and launch Rogers 2003
  • 30. AI innovation exercise 1. Find examples of recent AI innovations within your industry. 2. Discuss the following: – What is the innovation’s objective? – What internal and/or external data were/are needed for this innovation? – What challenges are there to successfully implementing this innovation? – What did AI do versus humans?
  • 31. A firm (organization) that is successful at innovation generally is successful at Al deployment. - Ringel et al., 2019
  • 32. Innovation capabilities Clear top- management buy-in Show that ready to redesign business models and end-to-end processes across whole organization Cross-functional, diverse teams A must-have to ensure the adoption of safe and beneficial technology Strong feedback loops Ensure iterative development process in close connection with relevant internal and/or external stakeholders Innovation culture Develop a "succeed fast" approach to innovation that focuses on finding unmet real needs Training and hiring programs with innovation at core Create an engaging work environment that enhances employee experience, incubates ideas and encourages creative thinking Torre, Engstam, & Teigland, 2020
  • 33. The challenges of AI innovation Data Generativity Responsible AI X Innovation network Partnership Ecosysystem Alone or or or Increasing complexity
  • 34. “Our starting point is not ocean data but rather ocean challenges and how ocean data can address those challenges. ” Predict spread of invasive species?
  • 36. Invasive species Dikerogammarus villosus Can ML help us predict areas in the Baltic Sea that would be suitable for the Killer Shrimp? Predicting spread of an invasive species Presence validated
  • 37. Predicting spread of Killer Shrimp Datasets 1. Port locations in Europe (EMODNET Human Activities) 2. Ocean surface temperatures and salinity for Baltic Sea (SMHI) and North Sea regions (SeaDataNet) as well as general (Marine Copernicus) 3. Presence data of D. Villosus from observations ranging from 1928- 2019 (GBIF) 4. Marine data layers (Bio-Oracle) Features 1. Salinity levels (mean 0 - 2 m) 2. Surface Temperature 3. Depth 4. Substrates 5. Exposure (waves)
  • 38. Our process • Problem formulation • Data collection • Data preparation and cleaning • Building and fitting the models • Evaluating model • Interpreting model output • Continuing until output is actionable Time spent
  • 39.
  • 41. The challenges of AI innovation Data Generativity Responsible AI X Innovation network Partnership Ecosysystem Alone or or or Increasing complexity
  • 42. AI innovation capability • Ensure shared understanding of purpose and motives behind AI innovation • Enable an adaptable organizing vision • Align perspectives of AI technology’s potential • Align and realign AI innovation objective with capabilities, data, and resources over time • Ensure responsible AI Why? What? How?
  • 43. AI innovation ecosystem Innovation Strategy Organizational Structures AI Skills Exploit Which partners fit your strategy? How important are ownership and control? What skills do you want to build inhouse? Explore Closed Open Inhouse External
  • 44. Twin Transition – Key to Sustainable Development weforum.org
  • 46.
  • 47.
  • 49. Blockchain-based marketplace enabling companies to purchase carbon removal certificates directly from farmers practicing regenerative agriculture.
  • 50.
  • 51.
  • 52. AI as enabler and inhibitor of SDGs Vinuesa et al., 2020 ICTs as % of Global Energy Demand 2020 – 1% 2030 – 20%
  • 53. AI can be biased wherever a human can be biased. https://www.bloomberg.com/graphics/2023-generative-ai-bias/
  • 54. AIRS - AI/ML Risks and Security https://ai.wharton.upenn.edu/white-paper/artificial-intelligence-risk-governance/
  • 55. Jail breaking, assisting scamming, data poisoning
  • 56.
  • 57.
  • 60. • Guiding AI Operational Capabilities – Harvesting & analysis of big data in a data strategy – AI-driven innovation strategy – Participation and growth in a business ecosystem • Supervising AI Governance Capabilities – Data management, ethics, & black box decision-making – AI cybersecurity – Participation and leadership in a business ecosystem https://www.amazon.se/AI-Leadership-Boards-Corporate-Governance/dp/B08XZ457K1
  • 61. Robin Teigland www.robinteigland.com www.slideshare.net/eteigland robin.teigland@gmail.com Mafalda de Freitas Circular Ocean mafalda.df@gmail.com www.circularocean.pt If you love knowledge, set it free!