Does artificial intelligence enable organisations to do things differently, or to do different things? There is a spectrum of views about the impact of AI, but where its effect on entrepreneurship is concerned, few share the vantage point with Hyunjin Kim. In her research, the Assistant Professor of Strategy at INSEAD covers a cross-section of over 500 start-ups and their interactions with AI.   

In the first episode of the new podcast series “The INSEAD Perspective: Spotlight on Asia”, Sameer Hasija, Dean of Asia at INSEAD, speaks to Kim about arguably the most pressing topic affecting business and society today: the impact of AI on business and entrepreneurship. 

Kim’s research focuses on how technology can help firms build competitive advantage and leverage data and algorithms to improve strategic decision-making. Initially, the focus on AI was about increasing efficiency and productivity, as well as lowering costs. However, she observed that the biggest shifts came from expanding the business in ways that wouldn’t have been possible without AI or even redesigning entire organisations. 

Kim shares insights from the recently concluded INSEAD AI Venture sprint, known as the AI Venture Lab. Although the initiative – the first of its kind for INSEAD – was aimed at helping companies build their businesses with AI, many existing AI-based businesses participated in the project. These companies have benefitted from a lower cost of experimentation, as they could build prototypes more cheaply and quickly, even when they lacked technical expertise. Service-based businesses were able to productise their services (from quality assurance to accounting), so that they could adopt a subscription model similar to that of SaaS (Software as a Service) vendors.

In the broader landscape, she notes that the emergence of generative AI has re-energised Silicon Valley, with significant ripple effects and opportunities beyond this epicentre. If so, can Asia benefit from what’s poised to be the next general-purpose technology? 

Despite Asia’s relatively young population and drive, the “Asian Century” hasn’t come to fruition, notes Hasija. Kim remarks that the biggest challenges entrepreneurs face are access to capital and labour. AI can reduce these frictions and help build more capital- and labour-efficient businesses, bringing new opportunities.

Hasija agrees that a technology that allows companies to be more capital-efficient and stretch their global reach is key. But there is yet another critical ingredient: know-how. As it stands, AI is democratising knowledge. He is heartened that initiatives like the AI Venture Lab are taking it one step further by providing the tools, mentorship and networks to increase companies’ opportunities and exposure. And so, if there is ever a good time for Asia’s promise to materialise, this is it.