How Companies Can Turn AI Disruption Into Competitive Advantage
Ivan Bofarull is Chief Innovation Officer at Esade and book author of 'Moonshot Thinking'
We are undeniably facing a transformative era driven by Artificial Intelligence (AI), with profound implications for companies. In its latest 'Request for Startups', Y Combinator — the Silicon Valley accelerator — emphasized a focus on 'startups building tools that allow small businesses to operate at the level of large corporations'. Meanwhile, Ark Invest's Cathie Wood predicts an 'epochal shift' in organizational performance due to AI-driven automation.
We are no longer dealing with episodic disruption; we are entering an era where disruption becomes a continuous process, orchestrated by autonomous AI agents. Imagine business strategy evolving as rapidly as high-frequency algorithmic trading in financial markets, with companies constantly playing catch-up. In light of this scenario, are organizations truly ready to navigate a business environment defined by constant disruption?
Despite decades of literature on disruptive innovation, many companies still struggle to react effectively to it. This ongoing challenge persists due to several factors:
Drawing on 30 years of corporate longevity research, a comparative analysis reveals three consistent traits among companies that thrive amid different waves of disruption:
In an AI-driven economy, companies must go beyond merely reacting to disruption. They need to become disruption-friendly organizations, capable of turning uncertainty into a strategic advantage. Building on these findings, companies in the AI era should master at least three core mechanisms:
In a world of endless disruption, companies must develop a curated portfolio of strategic bets, what I call Selective Optionality. This is where the role of a strategic scout becomes critical.
Many organizations fail to adapt to disruption because they have rigid strategic plans that quickly become obsolete. Instead, they need directionality—a flexible but clear trajectory that allows for adaptive course correction.
To build asymmetric capabilities is to create differentiation that AI alone cannot replicate. One of the most pressing debates today is how AI influences human decision-making, and whether it reinforces conventional wisdom or enables truly original insights. This is a crucial discussion, as corporate history is littered with companies that did what seemed right, aligning with industry's best practices and data-driven consensus, only to fail or stagnate. As Ray Dalio famously noted, success often requires betting against consensus and being right. The true upside lies in contrarian positions that prove correct.
However, AI's fundamental design is to extrapolate from past data, reinforcing prevailing patterns rather than generating truly novel insights. Even when prompted to be "contrarian," AI remains predictably contrarian, mimicking known counterarguments rather than crafting genuinely asymmetric beliefs.
The AI era does not need managers who simply follow benchmarks or industry norms. Instead, it demands leaders who:
Asymmetric beliefs fuel exponential improvements, and these breakthroughs create defensible competitive moats. This is because a high-risk technological leap, if successful, often reduces market risk, accelerating adoption at scale.
In the context of AI-driven transformation, a clear takeaway emerges: companies that succeed will be those that:
Moats may be eroding in an era of hyper-competition, but AI is also creating new windows of opportunity, ones that are deeply rooted in human ingenuity, not machine-driven predictability.
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TechCrunch
a minute ago
- TechCrunch
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India-based audio series platform maker Pocket FM aims to be the Netflix of audio. That is, the company intends to match its audio series with hundreds of episodes to its users' tastes. For that to work, it needs to release content rapidly — something it's now turning to AI to help with. The Lightspeed-backed startup is giving its writers an AI tool set that can do things like suggest better endings to an episode or make the narrative more engaging. The hope is that the tools will speed up the storywriting process. Pocket FM already uses some AI tools like ElevenLabs to generate voices for audio series. It also tested AI tools for writing and adaptation assistance internally. Rohan Nayak, Pocket FM's founder, said it's rolling out the AI tools to all writers, so it will take them less time to finish their episodes. Image Credits: Pocket FM The writing tool, dubbed CoPilot, can be used to help any writer create a story. CoPilot can transform narrative-based writing into dialog-based writing for a specific segment. It can also do 'beat analysis' to shape the writing in a way to makes it more engaging for an audio series of a particular genre. The tool additionally has basic chatbot-style writing features such as 'shorten,' 'expand,' and the ability to generate text via a prompt. To build CoPilot, the company examined thousands of hours of data points to understand what makes users engage more with a particular storyline in a specific genre. Based on that, it added writing suggestion features designed to increase conflict between characters and recommend endings for an episode to make it more exciting. AI can also suggest tags for background effects that can be used while producing the audio. The tool can automatically generate bios of characters, their relationships, and summarize plot points of different episodes, allowing creators to refer back to these details while writing. CoPilot also has a review tool, which checks for plot points, grammar, and leaves qualitative feedback through comments on an episode. Under the hood, Pocket FM is training smaller models to maintain context for a story for character arcs and relations, along with narrative consistency. Plus, utilizing signals from users, the startup is nudging AI to add more drama to the story. International expansion and localization plans Alongside the arrival of the AI tools, Pocket FM launched adaptation tools for various markets that not only translate the text from one language to another but also change names and phrases that are more suited to that region's culture. The company first debuted this tool as a part of the CoPilot suite in Germany earlier this year to convert stories from other regions after reportedly struggling to engage users in the European country last year. Nayak said the company saw great results from this trial, with a constant increase in monthly in-app revenue, which crossed $700,000 in June. Image Credits: Pocket FM 'When we started expanding into new regions, it used to take us 12-18 months to meaningfully exist in that market. You have to have at least 1,000 hours of content to start acquiring users and scaling the market. Now we can do this in less than three months,' Nayak said. The tool increased writer productivity by up to 50% for the German market in terms of show output. Plus, the tool helped the company create more error-free drafts of the shows that resulted in higher user retention for audio series. In the U.S, series created with the help of these new AI tools are now contributing 10% of playtime. Plus, these shows have generated $7 million in revenue in the last 12 months while reducing the cost of production by 2-3 times. Building tech to scale content generation As a result of adopting different AI features internally, Pocket FM has been able to scale the content quickly. The startup said it launches close to 1,000 pilots per month. And just the sheer volume of content results in a few of them becoming hits. But the audio show is just one part. The company is already working on tools to convert stories into comic strips with its Pocket Toons platform. Plus, Nayak said video is a possible format the company could explore, too. The startup, which has raised over $196 million in funding across rounds, is experimenting with a micro drama app as well. Image Credits: Screenshot by TechCrunch By next year, Pocket FM wants to release its own singular large language model (LLM), which will be based on data collected from its shows and incorporate different tools like writing assistance, adoption, dramatization, and story context retention. 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Another concern is that writers could become overly dependent on AI over time. In Germany, AI is writing more content than humans per show for select titles. With Pocket FM's plans to roll out more AI tools, the amount of AI-written content could increase. And with that, the expectation of churning out more shows could rise, too. Unless user adoption also rises rapidly, average returns could drop. The company didn't directly address TechCrunch's questions about returns, but said that its AI tools can speed up a writer's work and help them edit an episode based on numbers and audience feedback. That is they could make targeted improvements, instead of doing a full rewrite. 'This way, faster content creation doesn't necessarily dilute quality or relevance; it just shifts the writer's role towards editing, refining, and steering more productive output,' a spokesperson said in a statement.
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