Business A.M
No Result
View All Result
Wednesday, February 11, 2026
  • Login
  • Home
  • Technology
  • Finance
  • Comments
  • Companies
  • Commodities
  • About Us
  • Contact Us
Subscribe
Business A.M
  • Home
  • Technology
  • Finance
  • Comments
  • Companies
  • Commodities
  • About Us
  • Contact Us
No Result
View All Result
Business A.M
No Result
View All Result
Home Insead Knowledge

Have You Really Counted the Costs of GenAI?

by INSEAD KNOWLEDGE
September 10, 2025
in Insead Knowledge
Have You Really Counted the Costs of GenAI?

It’s easy to chase productivity gains with generative AI. But are you also accounting for the value you may be giving up?

Everywhere we turn, we hear about the transformative potential of generative AI. A flood of toolkits and opinion pieces promises faster work, fewer dull tasks and more time for high-value thinking. Social feeds are saturated with AI hacks for boosting productivity and automating anything that feels inefficient.

Let me be clear: GenAI really can help us work faster and scale more easily. But when we focus solely on what AI can do, we risk losing sight of what we may be giving up. Leaders must start asking a deeper question: Where does real value come from in our work? If we don’t, we risk destroying more value than we create.

Where value lies

Writing this article involved several false starts, abandoned outlines and a “scraps” document much longer than the final version. Out of curiosity, I asked a GenAI tool to draft it from a few prompts. In 10 seconds, I had something that was in fact very good. The speed and efficiency were impressive. But what did I lose in skipping the messy process?

While there is no denying the productivity, innovation and creativity benefits of Gen AI, they aren’t the only kind of value we get from our work. Here are five dimensions of value leaders often overlook when they rush to hand over tasks to GenAI.

  1. Knowledge and learning

Many work tasks teach us something indirectly. Struggling to remember a word in a second language helps cement it in memory. Trying multiple solutions to a tough problem often leads to accidental insights (as was the case with penicillin, Coca-Cola and smoke detectors). Synthesising information improves our understanding.

Letting GenAI translate, solve or summarise may be faster and sometimes more accurate. But when we skip the process, we lose the learning. As the Confucian philosopher Xun Kuang reportedly said, “Tell me and I forget. Teach me and I remember. Involve me and I learn.”

  1. Skill building

We get better by doing. Writing and revising sharpens our editing. Debugging code deepens our programming skills. Grappling with writer’s block builds resilience. Relying on GenAI to clean up our drafts or propose options gives quick results, but over time it erodes the very skills we need to keep developing.

  1. Connection and collaboration

Traditionally, complex work has been done in teams. GenAI now gives individuals the computing power to do much more alone. That means fewer shared moments of problem-solving, and fewer opportunities to build trust, understanding and camaraderie.

These interpersonal dynamics aren’t just nice-to-haves. They’re central to organisational health. Without them, performance suffers, and so does well-being. Research shows we’re already seeing signs of growing workplace isolation.

  1. Active engagement

When we’re fully mentally present in our work, we do better and feel better. GenAI can diminish that presence. For example, when it summarises a report or meeting transcript for us, we may no longer process the material ourselves.

Summarising is not just about extracting key points. It’s an act of framing and interpreting meaning. That process deepens our understanding and increases our engagement. 

While it’s easy to claim that we’ll add our own input later, ask yourself how often you really do that. We’re all busy, and it’s just too easy to skim, nod and say, “Yeah, I think this is good enough,” without engaging deeply enough to recognise what’s missing.

  1. Voice and identity

Every leader has a unique style, reflected in how they write, speak and solve problems. These traits shape their professional identity. But when AI writes your memos or builds your presentations, your personal tone and voice risk getting flattened.

Large language models are built to converge, producing broadly acceptable answers. So when two leaders ask the same model the same question, they get similar responses. Over time, that can dilute not only individual identity but organisational distinctiveness.

Short- and long-term effects

These costs are not always immediate or obvious. Comparing the productivity gains from GenAI to lost learning or reduced trust is like comparing apples to motor oil. The dimensions differ, and so do the effects.

In work I’ve done with Harvard Business School professor Amy Edmondson on the employee value proposition, we highlight two axes for leaders to consider: individual vs. collective benefit, and short- vs. long-term impact. A GenAI application might increase team output now but hinder individual development later. Or it might save time today but reduce engagement over time.

Humans aren’t naturally good at long-term thinking. But with GenAI, we need to stretch our time horizon and look beyond immediate productivity.

How to run an AI value audit

So how should leaders assess where GenAI fits? Like any managerial decision, it requires a clear-eyed review of costs and benefits. I suggest conducting an AI value audit. Here’s how.

Step 1: Identify value types. What value does a task generate? Think of speed, accuracy, insight, learning, connection or voice. Not every task delivers every type of value, but leaders must think beyond output alone.

Step 2: Prioritise and balance. Consider trade-offs. AI-powered meeting notes may boost efficiency but lower engagement. If that’s a concern, you may decide to automate only low-stakes conversations or alternate between AI and live note-taking. If GenAI replaces a brainstorming session, create other chances for team bonding.

Step 3: Revisit your assumptions. Treat AI decisions like perishable goods. Review them regularly, don’t discard without reason, but don’t assume they’re still fresh. Good scientists form hypotheses, test them, gather feedback and adjust accordingly. You should do the same.

It’s not just up to leaders

One final note: These decisions aren’t solely in leadership’s hands. GenAI is accessible, cheap and everywhere. Employees are already making choices about when and how to use it.

So look at your metrics. If your KPIs measure only speed and output, people will naturally lean on AI. That might be fine, but only if that’s truly all that matters. If it isn’t, rethink what you reward.

And most importantly, talk to your people. Help them understand the kinds of value GenAI enables – and the kinds it can quietly undermine. That’s the only way to ensure they’re making choices that serve both their growth and your organisation’s future.
 

This is an adaptation from an article originally published in the Harvard Business Review.

Previous Post

The Failure of Anti-Austerity Populism

Next Post

Leading Between the Lines

Next Post
Leading Between the Lines

Leading Between the Lines

  • Trending
  • Comments
  • Latest
SIFAX subsidiary bets on operational discipline, cargo diversification to drive recovery at Lagos terminal

SIFAX subsidiary bets on operational discipline, cargo diversification to drive recovery at Lagos terminal

February 10, 2026
Igbobi alumni raise over N1bn in one week as private capital fills education gap

Igbobi alumni raise over N1bn in one week as private capital fills education gap

February 11, 2026
Egbin Power targets youth employability with tech skills initiative

Egbin Power targets youth employability with tech skills initiative

February 10, 2026
inDrive turns to advertising revenues as ride-hailing economics push platforms toward diversification

inDrive turns to advertising revenues as ride-hailing economics push platforms toward diversification

February 10, 2026

6 MLB teams that could use upgrades at the trade deadline

Top NFL Draft picks react to their Madden NFL 16 ratings

Paul Pierce said there was ‘no way’ he could play for Lakers

Arian Foster agrees to buy books for a fan after he asked on Twitter

inDrive doubles Nigerian courier workforce as app-based delivery gains traction

inDrive doubles Nigerian courier workforce as app-based delivery gains traction

February 11, 2026
Affordability becomes key economic variable ahead of 2026 FIFA world cup

Affordability becomes key economic variable ahead of 2026 FIFA world cup

February 11, 2026
Access Holdings charts new course for pan-African expansion in value optimisation drive

Access Holdings faces regulatory speed bump in Bidvest acquisition

February 11, 2026
Releaf Earth’s credits put Africa’s carbon finance ambitions in spotlight

Releaf Earth’s credits put Africa’s carbon finance ambitions in spotlight

February 11, 2026

Popular News

  • SIFAX subsidiary bets on operational discipline, cargo diversification to drive recovery at Lagos terminal

    SIFAX subsidiary bets on operational discipline, cargo diversification to drive recovery at Lagos terminal

    0 shares
    Share 0 Tweet 0
  • Igbobi alumni raise over N1bn in one week as private capital fills education gap

    0 shares
    Share 0 Tweet 0
  • Egbin Power targets youth employability with tech skills initiative

    0 shares
    Share 0 Tweet 0
  • inDrive turns to advertising revenues as ride-hailing economics push platforms toward diversification

    0 shares
    Share 0 Tweet 0
  • Reps summon Ameachi, others over railway contracts, $500m China loan

    0 shares
    Share 0 Tweet 0
Currently Playing

CNN on Nigeria Aviation

CNN on Nigeria Aviation

Business AM TV

Edeme Kelikume Interview With Business AM TV

Business AM TV

Business A M 2021 Mutual Funds Outlook And Award Promo Video

Business AM TV

Recent News

inDrive doubles Nigerian courier workforce as app-based delivery gains traction

inDrive doubles Nigerian courier workforce as app-based delivery gains traction

February 11, 2026
Affordability becomes key economic variable ahead of 2026 FIFA world cup

Affordability becomes key economic variable ahead of 2026 FIFA world cup

February 11, 2026

Categories

  • Frontpage
  • Analyst Insight
  • Business AM TV
  • Comments
  • Commodities
  • Finance
  • Markets
  • Technology
  • The Business Traveller & Hospitality
  • World Business & Economy

Site Navigation

  • Home
  • About Us
  • Contact Us
  • Privacy & Policy
Business A.M

BusinessAMLive (businessamlive.com) is a leading online business news and information platform focused on providing timely, insightful and comprehensive coverage of economic, financial, and business developments in Nigeria, Africa and around the world.

© 2026 Business A.M

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Technology
  • Finance
  • Comments
  • Companies
  • Commodities
  • About Us
  • Contact Us

© 2026 Business A.M