99% of chief executive officers (CEOs) are planning to invest in GenAI in the upcoming period, as reported by EY.
The current scenario bears a resemblance to the dotcom boom, which led to numerous success stories and the flourishing e-commerce landscape we witness today. However, it also resulted in notable failures like Pets.com and Webvan, serving as cautionary tales of the pitfalls of technology-driven overconfidence.
Given history’s tendency to repeat itself, it’s unlikely that the outcomes of the AI surge will deviate significantly from past trends. The primary lesson history imparts is that blindly following trends seldom leads to success in the competitive AI arena.
Numerous contemporary instances highlight how hasty pivots and unsupported shifts in style often culminate in failure rather than triumph.
Ep Lost Its Way by Embracing the Life Support Trend
For a considerable duration, the video game industry has reigned as the most lucrative entertainment sector. Apart from mobile gaming, a substantial portion of the industry’s earnings stem from “live service” multiplayer games such as Fortnite, generating \(6 billion in 2022, and GTA V, which has amassed over \)8 billion in sales since its 2013 launch.
While successful live service examples are scarce, each one epitomizes the concept of “build once, profit for a decade,” a strategy that companies like EA find appealing. Former EA president Frank Gibeau even declared that single-player games were obsolete in anticipation of the company’s shift towards more profitable multiplayer games. However, EA soon discovered that blindly following trends is a risky business tactic.
The ambitious live-service game Anthem from EA, launched in 2019 to negative reviews, stands as a stark reminder of how even industry giants can stumble when they stray from their core objectives. Anthem’s failure can be attributed to a combination of technical issues and poor decision-making driven by the allure of a popular trend.
In hindsight, it’s perplexing why Bioware, renowned for its immersive single-player experiences, was entrusted with developing Anthem. The game’s subpar quality reflected a broader issue affecting long-standing businesses forced into unfamiliar market territories, alienating their consumer base.
EA’s actions, which stripped Bioware employees of their creative autonomy and compromised the game’s artistic integrity to chase the live-service trend, underscore the importance of CEOs preserving their company’s mission and legacy while integrating AI into their offerings.
Ubisoft Montreal, located in Montreal, Quebec, Canada, is where Ubisoft Montreal’s corporate headquarters are situated.
Playtech’s Misguided Shift to NFTs and its Consequences
The French entertainment giant Ubisoft, commanding an 8% market share in Europe and North America, serves as a cautionary tale in the video game industry’s evolution.
In 2020, amidst the NFT frenzy, Ubisoft invested heavily in blockchain-based digital assets known as Non-Fungible Tokens (NFTs). The subsequent crash of the NFT market, where investments plummeted, illustrated the volatility of such ventures.
Ubisoft introduced Ubisoft Quartz in 2021, aiming to convert in-game collectibles into NFTs, a move that garnered initial attention but ultimately backfired spectacularly. Projects like Ubisoft Quartz and other NFT initiatives were swiftly abandoned following widespread criticism.
The failure of Ubisoft’s NFT foray can be attributed to a fundamental misunderstanding of their consumer base. Despite the industry’s resistance to NFTs and similar monetization methods, Ubisoft proceeded with its ill-fated venture driven by opportunistic motives.
CEOs venturing into AI integration should heed this lesson: prioritize serving your users and maintaining authenticity in your product offerings. Avoid blindly following trends for short-term gains, as discerning consumers can quickly identify insincere motives.
Netflix’s Exemplary Transition to AI Implementation in 2007
Amidst the ethical AI investment opportunities available today, Netflix’s successful pivot to cutting-edge technologies serves as a beacon of effective adaptation in the industry.
Originating as a humble DVD rental service in 1997, Netflix boldly transformed its business model by embracing advanced technology, propelling it to the forefront of the streaming industry.
The decision to introduce “movies on demand” in 2007 revolutionized entertainment consumption patterns. Netflix’s unwavering commitment to its vision, coupled with strategic decisions and a bit of serendipity, facilitated this pivotal transition.
By maintaining its core values and consumer-centric approach during the shift to online streaming, Netflix reinforced its promises of convenience, accessibility, and choice. This steadfast dedication culminated in Netflix mailing its final DVD in September 2023, symbolizing a true commitment to customer satisfaction.
CEOs aspiring to excel in the AI landscape should emulate Netflix’s dedication and integrity, prioritizing user-centric innovation to thrive in the competitive AI race.
