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The dilemma every company faces with AI

The news story that caught my attention today has a provocative title: “If AI doesn’t kill your company, it will make it stronger.” It sounds dramatic, but it perfectly reflects the transformative moment we are living in. A study presented at the European Central Bank reveals something I have observed repeatedly in my work with startups and established companies: the implementation of AI generates initial turbulence before bringing real benefits.

The data is clear: Early adopters of AI in manufacturing initially saw their productivity decline as they replaced workers with automated systems. However, those that managed to weather this turbulent phase began to show superior performance in sales growth, productivity and even job creation.

This is exactly the paradox of innovation that I always mention in my talks. Every profound transformation requires a period of adaptation, where results can get worse before they get better. It’s like renovating a house while you’re still living in it – there’s an inevitable period of discomfort before the new environment reveals its true value.

Damodaran's warning: AI as a cost, not a revenue

In an interesting counterpoint, the respected professor Aswath Damodaran issued a warning that complements this view: “For most companies, AI will be a cost, not a revenue.” According to Brazil Journal report, he questions the over-optimism that AI products and services will become a US$1.5 trillion market, saying that many organizations will not see significant returns from trying to reinvent themselves quickly.

This apparent contradiction between the two news items actually reveals a deeper understanding of the phenomenon: AI is not a magic solution, but a tool that requires strategic implementation. Companies that see AI as just another technological cost, without rethinking processes and business models, are likely to be in the group of those that simply accumulate expenses.

On the other hand, organizations that understand that implementing AI is part of a broader transformation – involving people, culture and processes – have greater potential to reap the benefits described in the first study.

Brazilians already notice AI in their daily lives

While companies debate costs and benefits, Brazilian consumers are already much more familiar with technology than many executives imagine. SimBis research reveals that 58,62% of Brazilians already notice the use of artificial intelligence in interactions with brands.

Even more surprising: 541% of Brazilians report using generative AI, surpassing the global average. This indicates that our market is not only aware of, but actively engaged with this technology. The message for businesses is clear: your customers are already on board with the AI revolution, and they expect you to be too.

This data reinforces my conviction that Brazilian companies need to accelerate their digital transformation to avoid falling behind. The window of opportunity is open, but it will not remain that way indefinitely.

Controversial uses of AI: from the Ghibli filter to disinformation

In the area of controversy, two news items have caught attention. The first involves the popular AI filter that transforms photos into the Studio Ghibli style, raising fundamental questions about copyright in the age of AI. If the law does not protect artistic styles, but only specific works, what are the ethical limits for AI creation?

The second controversy comes from Elon Musk's own AI, Grok, which classified its creator as one of the main disseminators of misinformation on social network X. This case perfectly illustrates the challenge of developing AIs that are both accurate and aligned with the commercial interests of their developers.

There is also a third controversial use: courses that teach create adult content using AI-generated virtual models. This phenomenon, which has been dubbed “job AI” on social media, raises serious questions about consent, image rights and the urgent need for regulation.

These cases remind us that technology itself is neutral – it is the human uses that determine its positive or negative impacts. That is why I constantly advocate an ethical and responsible approach to innovation.

How to navigate this new scenario? Three practical lessons

After analyzing the main news stories about AI from the last 24 hours, I have drawn three practical lessons for Brazilian companies:

• Prepare for initial turbulence: Implementing AI will likely cause discomfort and even a temporary drop in productivity. This is normal and part of the process. Companies that give up at this stage miss out on the opportunity to reap the benefits in the future.
• Think beyond technology: AI is not just a new piece of software to be installed, but an opportunity to rethink processes, business models and even organizational culture. Companies that understand this can turn costs into investments.
• Evolve with your consumer: Brazilians are already experimenting with and using AI in their daily lives. Ignoring this reality means losing relevance. Companies need to, at the very least, keep up with the pace of technological adoption by their customers.

The innovation paradox and the Brazilian advantage

There’s an interesting paradox in today’s news. On the one hand, AI implementation creates disruption and costs before it brings benefits. On the other, companies that fail to adapt risk being left behind in a market where consumers are already embracing these technologies.

Brazil has a competitive advantage in this scenario: our consumers are naturally adaptable and open to new technologies. This creates a fertile environment for experimentation and innovation. However, we need more companies willing to navigate the initial phase of turbulence.

In my mentoring for startups and consulting for established companies, I have observed that the most successful organizations in implementing AI are those that take an experimental but structured approach – testing applications in specific areas before expanding, and keeping the focus on real business problems, not just the technology itself.

The future belongs to the resilient

The most important message I take away from the study presented at the European Central Bank is about resilience. The companies that have overcome the initial turbulence of AI implementation and emerged stronger are examples of what I call “innovative resilience” – the ability to persist through the inevitable difficulties that any profound transformation brings.

This is a topic that is particularly dear to me, because throughout my career supporting more than 10,000 startups, I have seen that the difference between success and failure is rarely in the initial idea or the technology used, but in the ability to adapt and persist in the face of obstacles.

AI is redefining the rules of the game in virtually every industry. In my mentorship programs, I help entrepreneurs and executives build this innovative resilience by identifying strategic opportunities for AI implementation that go beyond the hype and create sustainable value.

The paradox of AI in business – upfront cost versus future benefit – perfectly captures the essence of innovation: real transformation is rarely painless, but it is the only path to lasting relevance.

Are you prepared to navigate this initial turbulence to reap the rewards of AI transformation? The future belongs to those who understand that innovation is not a choice, but a necessity – and that true competitive advantage lies in how we implement technologies, not just in which technologies we choose to implement.