Uncertainty around AI takes different shapes and forms, but we can boil it down to three main categories that every manager should consider: state, effect and response uncertainty. State uncertainty occurs when managers lack sufficient information to predict market trends and changes.
uncertainty. State uncertainty occurs when managers lack sufficient information to predict market trends and changes. Managers experiencing this type of uncertainty face challenges in understanding AI’s current capabilities and potential developments. As AI evolves rapidly, it is difficult to distinguish between what is achievable now and what remains a distant possibility.
As such, even developers do not know how enhancements — like an increased context window in upcoming models—will affect business outcomes or employee dynamics. Response uncertainty is the challenge for managers in determining how to react and the consequences of these actions to the many uncertainties surrounding AI.
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