Some form of debate is now emerging on what is still the true role of firms, if at all. This is because a lot of people feel that in our present age of AI, there isn’t the requirement of formal channels of organizations to control work. Instead of formal contracts, we could do with a team of professionals collaborating through devices such as the Amazon Alexa. In spite of this compelling logic, there is still a genuine requirement of firms due to a few key reasons. The first of them is that firms manage tensions across competing priorities which would otherwise never be solved without a hierarchical structure. It serves the thin line between exploration and exploitation. Firms also help professionals in setting a long-term corporate strategy which looks towards future expectations within a system. This view also helps individuals in bringing them a spiritual or moral call to action. Any unreasonable behaviour gets weeded out by such firms.

Source:https://hbr.org/2018/08/whats-the-purpose-of-companies-in-the-age-of-ai?utm_medium=email&utm_source=newsletter_daily&utm_campaign=dailyalert_activesubs&utm_content=signinnudge&referral=00563&deliveryName=DM11934

Uploaded Date:16 August 2018