The business of business is relationships: the implications of generative AI for organisational intangibles
Intangibles are increasingly important to productivity growth and to the widening gaps between firms, yet generative AI is changing their value in ways that current approaches to defining and measuring them cannot capture. In this paper, Prof Diane Coyle proposes splitting intangibles into two codified sets - transferable knowledge capital and organisational intangibles (the tacit, relational knowledge embedded in relationships with employees, suppliers and customers) - and argues that the latter will remain firms' lasting source of competitive advantage as they adopt AI.
