VIEWPOINT
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Paul McDonough Smith explores why moving from AI adoption to adaptation is now critical—and how leaders can build “AI fitness” to unlock real impact
As organizations move beyond the experimentation stage with artificial intelligence, a new challenge is emerging. Beyond initial adoption, what matters now is adaptation.
As an MIT Sloan Executive Education webinar recently put it, we are at a “pivot point” in how organizations are working with AI, moving from implementing tools to potentially reshaping work, the workforce, and the workplace in fundamental ways.
AI is changing work, workforce, and workplace
To understand this shift, it helps to view the change through three lenses:
At the most practical level, this begins with how work itself is structured. Roles can be broken down into multiple component tasks, often 15 to 25 in practice. Each of these tasks can then be assessed for whether it can be:
This creates a much more granular understanding of how work is really being done, and opens up new possibilities for redesigning workflows.
As AI capabilities evolve, tasks that are augmented today may become candidates for automation or agentic assistance tomorrow. This makes it increasingly important for leaders to understand how work is structured at the task level, and how those tasks fit together.
The real challenge is “AI fitness”
This leads to a broader organizational challenge: developing what McDonagh-Smith describes as “AI fitness.”
This is: “The ability to adapt to the capabilities of AI technology and reshape your organization accordingly.”
Importantly, this goes beyond tools or use cases. It includes processes and policies, operating models, and even business models.
In practice, AI fitness is reflected in how leaders operate. McDonagh-Smith highlights five characteristics of an adaptive AI leader:
Rather than treating AI as a one-time implementation, the goal is to build an organization that can continuously adjust itself as the technology evolves.
Adaptation requires a new operating logic
To do that, leaders need a different way of thinking about change.
One useful model comes from evolutionary biology:
variation → selection → retention
This creates a continuous loop of experimentation and learning.
The key insight is that even a simple, repeatable process, once it is applied consistently, can drive significant organizational change. As with natural selection, complexity and progress emerge over time from repeated cycles of testing and refinement.
Why adoption alone is not enough
Many organizations have already made progress in adopting AI tools. But there is a clear risk in stopping there.
“We can adopt AI… but unless we actually evolve our organization and adapt to the capabilities of the technology… we’re not ever really going to get to the point where we can optimize [its] potential”
Adoption can improve efficiency within existing structures. Adaptation, by contrast, requires rethinking those structures altogether – from how decisions are made; how teams collaborate with AI; and how workflows are designed to take advantage of human–machine complementarity.
A renewed focus on human capabilities
Perhaps counterintuitively, this transition places greater emphasis on human capabilities. While AI is often associated with automation, the McDonagh-Smith highlights a “paradox”:
technical knowledge alone is not enough to unlock its value.
Organizations must increasingly focus on: creativity, curiosity, critical thinking, and empathy and emotional intelligence. These capabilities are essential for: identifying where AI can be applied, experimenting effectively, and integrating AI into real workflows.
A fundamental reframing
As McDonagh-Smith suggests, the question is no longer: Will AI disrupt my organization? But rather: “Can my organization evolve fast enough to remain fit in this AI ecosystem?” This shifts the focus from technology adoption to organizational capability.
The organizations that succeed in this next phase will not simply be those that deploy AI tools most quickly. They will be the ones that: continuously experiment, learn from data, and adapt their structures, workflows, and behaviors accordingly.
In short, they will be the ones that build, and sustain, AI fitness.
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This article is based on the MIT Sloan Executive Education webinar “From AI Adoption to AI Adaptation in Work, the Workforce, and the Workplace” with Paul McDonagh-Smith, Visiting Senior Lecturer, MIT Sloan, and Peter Hirst, Senior Associate Dean for Executive Education.
You can learn more about MIT Sloan Executive Education’s Artificial Intelligence programs here.
MIT Sloan is uniquely positioned at the intersection of technology and business practice, and participants in our programs gain access to MIT’s distinctive blend of intellectual capital and practical, hands-on learning.
MIT’s Paul McDonagh-Smith and NASA Chief Scientist Jim Garvin show how space exploration technologies can be leveraged for competitive advantage