Large enterprises navigate a critical paradox with new technology like AI. Moving too slowly cedes the market and leads to irrelevance. However, moving too quickly without clear direction or a focus on feasibility results in wasting millions of dollars on failed initiatives.

Don't just sprinkle AI features onto your existing product ('AI at the edge'). Transformative companies rethink workflows and shrink their old codebase, making the LLM a core part of the solution. This is about re-architecting the solution from the ground up, not just enhancing it.

Companies once hired siloed 'digital experts,' a role that became obsolete as digital skills became universal. To avoid repeating this with AI, integrate technologists into current teams and upskill existing members rather than creating an isolated AI function that will fail to scale.

High productivity isn't about using AI for everything. It's a disciplined workflow: breaking a task into sub-problems, using an LLM for high-leverage parts like scaffolding and tests, and reserving human focus for the core implementation. This avoids the sunk cost of forcing AI on unsuitable tasks.

Treat AI initiatives as two separate strategic pillars. Create one roadmap focused on internal efficiency gains and cost reduction (productivity). Maintain a separate roadmap for developing new, revenue-generating customer experiences (growth). This prevents conflating internal tools with external products.

Organizations fail when they push teams directly into using AI for business outcomes ("architect mode"). Instead, they must first provide dedicated time and resources for unstructured play ("sandbox mode"). This experimentation phase is essential for building the skills and comfort needed to apply AI effectively to strategic goals.

Small firms can outmaneuver large corporations in the AI era by embracing rapid, low-cost experimentation. While enterprises spend millions on specialized PhDs for single use cases, agile companies constantly test new models, learn from failures, and deploy what works to dominate their market.

The true enterprise value of AI lies not in consuming third-party models, but in building internal capabilities to diffuse intelligence throughout the organization. This means creating proprietary "AI factories" rather than just using external tools and admiring others' success.

Afeyan advises against making breakthrough innovation everyone's responsibility, as it's unsustainable and disruptive to daily jobs. Instead, companies should create a separate group with different motivations, composition, and rewards, focused solely on discontinuous leaps.