Modular Firm Boundaries Slow AI Capability Reconfiguration Gains

The Common Question

Why do our AI projects keep stalling between business units?

The Lesson in This Case

Firms built on modular structures gain flexibility, but AI is exposing a hidden cost – the same boundaries that once contained complexity now slow the rapid reconfiguration AI requires to deliver real results. The firms pulling ahead are not those with the most advanced models; they are the ones that can redraw capability boundaries faster than their competitors. If your AI investments keep stalling at the handoff points between business units, the bottleneck is your org design, not your technology.

Originally reported by Harvard Business Review. Read the full story here.