Many organizations miss AI's transformative potential by limiting its use to optimizing current workflows. The real opportunity lies in fundamentally rethinking how work is done, much like AWS enabled entirely new business models beyond just cheaper hosting.

Using AI for incremental efficiency gains (10% thinking) is becoming table stakes. True competitive advantage lies in 10X thinking: using AI to fundamentally reimagine your business model, services, and market approach. Companies that only optimize will be outmaneuvered by those that transform.

Most companies use AI for optimization—making existing processes faster and cheaper. The greater opportunity is innovation: using AI to create entirely new forms of value. This "10x thinking" is critical for growth, especially as pure efficiency gains will ultimately lead to a reduced need for human workers.

Companies can either augment existing processes with AI for incremental efficiency (e.g., co-pilots) or completely redesign workflows. While augmentation is common, the most transformative value and disruptive business models will emerge from a clean-sheet redesign of how work is done.

Don't confuse adoption with transformation. Adoption is using AI to do existing tasks more efficiently. Transformation is using AI to achieve outcomes and build business models that were previously impossible. This distinction is key for measuring the true strategic impact of AI initiatives.

The focus on AI automating existing human labor misses the larger opportunity. The most significant value will come from creating entirely new types of companies that are fully autonomous and operate in ways we can't currently conceive, moving beyond simple replacement of today's jobs.

The greatest wins from generative AI will come from questioning and eliminating old processes, not just making them faster. Leaders should challenge teams to use AI to "do different things" entirely, like questioning the need for a report in the first place, rather than just using AI to write it faster.

The common analogy of AI being "like a website" that every company must adopt may be misleading. The real transformative power of AI could be in enabling entirely new, AI-native businesses that leapfrog incumbents, rather than simply being a feature tacked onto existing products.

The most significant value from AI is not in automating existing tasks, but in performing work that was previously too costly or complex for an organization to attempt. This creates entirely new capabilities, like analyzing every single purchase order for hidden patterns, thereby unlocking new enterprise value.