Beyond the Algorithm: AI as a Business and Organizational Challenge

Bram Timmermans at DIG Summit 2024
Head of DIG - Bram Timmermans, reflecting on the challenges from AI
By Bram Timmermans

10 April 2025 11:59

Beyond the Algorithm: AI as a Business and Organizational Challenge

Artificial Intelligence (AI) is often framed as a technical phenomenon—a matter of algorithms, data pipelines, and computing power. But this framing tells only part of the story.

As AI continues to advance, its most profound impacts are not technical. They are economic, organizational, and societal.

AI is transforming how we work, how firms compete, and how value is created and distributed. From predictive models in logistics to generative systems in creative industries, the adoption of AI reshapes organizational routines, decision-making processes, and workforce dynamics. It is not enough for firms to acquire AI systems and capabilities—they must rethink how they structure work, design incentives, build trust in automation, and manage change across functions and hierarchies.

Picture from AI Summit

Global Turbulence and Europe’s AI Response

We are witnessing an era of rapid and far-reaching global change—geopolitical tensions are rising, trade relations are being reshaped, and power balances are constantly in flux.

This presents a challenge for business leaders. AI adoption is not a plug-and-play upgrade—it’s a systemic shift. Successful integration of AI requires aligning strategy, structure, and culture. Firms must learn to navigate uncertainty, invest in new capabilities, and adapt their operating models. Those who treat AI as a siloed IT initiative risk falling behind.

We are also seeing how AI reshapes competition. As data and algorithms become strategic resources, industry boundaries change. Traditional advantages may be disrupted by firms that leverage AI to personalize offerings, optimize operations, and simply innovate faster. In this environment, leadership matters. Organizations need not only technical talent, but also strategic foresight and organizational agility to create and capture value from AI effectively.

At DIG and NHH, we know that business schools have a central role to play in this transformation. Research and education must evolve to equip leaders with the tools and insights to understand AI as a force that cuts across domains. This interdisciplinary approach is not just desirable, but it is essential.

Frank elter

Technology that transforms

"As a leading provider of digital technologies such as 5G, fiber infrastructure, IoT solutions, artificial intelligence, data center services, and cybersecurity, we see how these technologies fundamentally transform both our customers' businesses and our own organization," says Frank Elter, Director of Telenor Research & Innovation (R&I), about the motives for partnering with DIG.

A recent example of this thinking was an NHH event where we brought together colleagues from across the different departments. You can get a glimpse of the conversation here.

As AI continues to impress with what it can achieve, one thing is certain: the organizations that succeed won’t be those with the fanciest models, but those that understand AI as an integrated, strategic, and organizational challenge.