Impact of generative AI on management : Current Situation

Abstract

Generative AI uses Large Language Models which are trained on a vast amount of text to interpret and generate human-like textual content. This study examines the impact of Generative AI on business management by analyzing its applications in creating new value, strategic planning, and enhancing operational efficiency. With the rapid expansion of the Generative AI market expected to grow from 1.5 trillion yen in 2022 to 21 trillion yen by 2032, the research highlights the significant potential of Generative AI in revolutionizing business practices. Methodologically, the study employs a literature review and case studies from online corporate sources to investigate how early-stage Generative AI has been influencing management practices and its integration into current business operations. The findings reveal that Generative AI not only improves management efficiency but also opens up new avenues for business development, offering companies a strategic edge in decision-making, risk management, and operational optimization. This underscores the transformative potential of Generative AI in shaping the future of business management. By deciding that generative AI is a new partner that works with humans, and by building a mechanism collaborating with generative AI as an organization, we will promote generational change and achieve sustainable corporate growth.