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Ethan Mollick says people underestimate what existing AI systems can do; large-scale change does not require future development. He worries business and investors treat AI only as an investment, missing changes from ubiquitous low-cost intelligence, and urges leaders to decide how to augment rather than replace labor.

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The belief that a future Artificial General Intelligence (AGI) will solve all problems acts as a rationalization for inaction. This "messiah" view is dangerous because the AI revolution is continuous and happening now. Deferring action sacrifices the opportunity to build crucial, immediate capabilities and expertise.

Business owners should view AI not as a tool for replacement, but for multiplication. Instead of trying to force AI to replace core human functions, they should use it to make existing processes more efficient and to complement human capabilities. This reframes AI from a threat into a powerful efficiency lever.

Contrary to the popular belief that AI's main purpose is to replace humans for less money, user data shows its primary benefit is enabling entirely new functions. As AI costs rise, the focus will shift from simple cost-cutting to strategic investments in capabilities that were previously impossible.

Wharton Professor Ethan Malek argues that during a technological revolution, using efficiency gains to fire people is a mistake. The winning strategy is to treat AI as a capacity gain, empowering existing teams to innovate and create new advantages that were previously impossible.

While AI capabilities advance, OpenAI's Chief Economist argues the next productivity step-change will stem from widespread adoption of existing tools. Many powerful features, like agentic workflows, are underutilized, meaning huge gains are possible with current technology.

A major risk with AI is that leaders, accustomed to viewing technology as an efficiency tool, will default to cutting jobs rather than exploring growth opportunities. Ethan Mollick warns of a "failure of imagination" where companies miss the chance to use AI to expand their capabilities and create new value.

The hype around future model improvements overshadows a key reality: current models are already "sufficiently intelligent" for countless valuable tasks. Even if all AI innovation stopped today, we could still unlock trillions in economic value just by integrating existing technology across the economy.

A major drag on AI's impact is the "capability gap"—the chasm between what AI can do and what people know it can do. AI companies are now shifting from simply improving models to actively educating the market by releasing tool suites that demonstrate specific, practical applications to accelerate adoption by closing this awareness gap.

The focus on achieving Artificial General Intelligence (AGI) is a distraction. Today's AI models are already so capable that they can fundamentally transform business operations and workflows if applied to the right use cases.

OpenAI's CEO believes a significant gap exists between what current AI models can do and how people actually use them. He calls this "overhang," suggesting most users still query powerful models with simple tasks, leaving immense economic value untapped because human workflows adapt slowly.