Over the last several years, artificial intelligence models have proliferated across the global economy. From scientific-research catalysts to email assistants to global-supply-chain management tools, AI products are seemingly everywhere. But as businesses and organizations rush to implement these tools, leaders need to be aware of an important and persistent limitation of AI models: bias. Kellogg…
Carolyn Geason-Beissel/MIT SMR | Getty Images Ideally, board meetings feature thoughtful and challenging engagement between the board and CEO as they execute a fundamental responsibility: to lead their company toward sustained value creation. However, board and CEO dynamics often fall short of this ideal. Frequently, the human element in the boardroom is the key issue.…
Carolyn Geason-Beissel/MIT SMR | Getty Images In 2019, two Dutch entrepreneurs founded an environmental, social, and governance (ESG) consulting firm with six like-minded friends and former classmates. United by a shared vision to transform their industry, the close-knit team members poured themselves into the venture, working long hours and celebrating every small win. Within a…
Carolyn Geason-Beissel/MIT SMR | Getty Images An increasing number of companies are tying employees’ compensation to their performance, and for good reason. The pay-for-performance (PFP) model has always been common in sales but has expanded in recent years to public school systems and even doctors’ offices, where 45% of doctors now receive PFP, up from…
Alice Mollon “People are not OK,” professor and author Brené Brown told an audience in October. She’s right. The mood she points to — “emotionally dysregulated, distrustful, and disconnected” — is visible everywhere you look. We’re seeing public CEO meltdowns, as well as pervasive well-being challenges on a worldwide workforce scale. In one stunning study,…
Carolyn Geason-Beissel/MIT SMR | Getty Images Organizations tend to change much more slowly than AI technology does these days. This means that forecasting enterprise adoption of AI is a bit easier than predicting technology change in this, our third year of making AI predictions. Neither of us is a computer or cognitive scientist, so we…
Harry Haysom/Ikon Images Chad repeatedly undermined Sue by sharing private information behind her back to her subordinates. When Sue confronted him, Chad said he was sorry in order to move past the issue. Brenda continuously micromanaged her subordinates, leading to feelings of disrespect and low morale among her team members. When they talked to her…
When Donald Trump signed the 2017 Tax Cuts and Jobs Act (TCJA), it seemed like a huge win for corporations. The new law slashed the corporate tax rate from as high as 39 percent to a flat 21 percent. But beneath that business-friendly benefit lurked some less-favorable changes to how companies calculate their tax burden,…
It’s perhaps the classroom’s worst-kept secret: students are using generative AI to do their homework. Large-language models (LLMs) like ChatGPT are getting so good, in fact, that they’re starting to make traditional homework like essays and conceptual questions feel almost obsolete. “The no-AI case doesn’t exist anymore,” says Robert Bray, a Kellogg associate professor of…
When Kellogg professor Brian Uzzi wanted to challenge how his students thought about artificial intelligence, he started by giving them a simple test called the Divergent Aptitude Test (DAT), which measures general creativity. Test-takers have four minutes to come up with a list of ten words that are as different as possible from one another.…