The UoM China Centre recently hosted an engaging Global MBA Masterclass on "The Strategic Implications of AI," attracting a diverse audience of industry professionals and executives. The lecture, delivered by Professor Peter Kawalek from Manchester Business School, explored how AI reshapes business strategies, enhances competitiveness, and creates new opportunities in an evolving digital landscape.
Prof Peter Kawalek
Information System & Digital Strategy
Alliance Manchester Business School
AI as the “Bicycle for the Human Mind”
Professor Kawalek opened the session by referencing Steve Jobs’ famous metaphor describing the personal computer as a “bicycle for the human mind.” He extended this analogy to AI, portraying it as the next evolution in enhancing cognitive efficiency. By augmenting human intelligence, AI addresses challenges ranging from simple predictive tasks to complex strategic decision-making, empowering organisations to innovate and thrive.
Network Effects and Learning Curves:
The Competitive Edge
The discussion highlighted how network effects and learning curves drive AI’s rapid development. Professor Kawalek explained that as more users generate data, AI models improve in accuracy and functionality, which in turn attracts even more users—a reinforcing cycle that gives larger networks a competitive advantage. While this often results in “winner-takes-all” scenarios, the rise of niche markets offers smaller players opportunities for differentiation. For instance, platforms offering personalised recommendations or boutique services can carve out unique spaces in specialised markets.
AI’s Role in Building Strategic Advantages
AI has become an indispensable tool for improving operational efficiency, enhancing customer experiences, and fostering innovation. Professor Kawalek shared examples such as AI-driven predictive maintenance in manufacturing, which reduces costs and enhances productivity, and personalised recommendation systems like those employed by Netflix to drive customer engagement. By leveraging proprietary data and advanced AI models, companies can establish formidable barriers to competition and solidify their market positions.
Challenges in AI Implementation
Despite its advantages, the adoption of AI presents challenges. Algorithmic bias can undermine trust and damage brand equity, while high implementation costs and a shortage of skilled professionals create barriers to entry. Furthermore, data privacy regulations, cybersecurity risks, and the ethical implications of AI usage pose significant hurdles for organisations.
AI in Decision-Making and Future Collaboration
One of AI’s greatest strengths lies in its ability to analyse vast datasets, simulate future scenarios, and provide actionable insights. By enabling real-time monitoring of market trends and optimising risk management, AI aids in dynamic strategic planning. Professor Kawalek emphasised that AI is not about replacing human intelligence but collaborating with it. From accelerating medical discoveries to tackling climate change, AI’s potential lies in augmenting human creativity and solving complex global challenges.
Manchester Global MBA: Shaping Future Leaders
The University of Manchester has long been at the forefront of technological revolutions. Alan Turing, regarded as the “Father of Artificial Intelligence,” conducted groundbreaking work at the University, setting the foundation for modern AI advancements.
The Global MBA programme upholds this tradition of innovation and commitment to excellence. By integrating cutting-edge research into its curriculum, the programme equips professionals with the tools to navigate a rapidly changing business environment.
Applications for the July 2025 intake are now open. Join us now for a transformative journey in global business leadership!
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