The Long Game: Mastering the J-Curve of AI-Driven Competitive Advantage

Jifeng Mu
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Jifeng Mu: Microfoundation Institute

Chapter Chapter 7 in The Human Architect, 2026, pp 357-392 from Springer

Abstract: Abstract In the feverish race for market dominance, artificial intelligence is often sold as a “turnkey” miracle, a magic switch for instant revenue and infinite efficiency. Yet history tells a far more demanding story. Much like electricity or the internet before it, AI is a general-purpose technology that requires not just adoption, but a total institutional rebirth. This chapter pulls back the curtain on the”deployment gap,” revealing why the initial hype of AI so often collapses into a “productivity paradox.” We investigate the sobering reality that a competitive edge is never automatic. It is the hard-won prize of a slow, deliberate evolution. To navigate this difficult terrain, the authors employ vivid storytelling as a diagnostic lens, guiding the reader through the “downward slope” of the productivity J-curve. This narrative journey plunges into the inevitable friction where cost, talent shortages, and cultural resistance threaten to stall even the most advanced organizations. Through the lives of those on the front lines, the reader discovers that a differentiating edge in the AI era cannot be “bolted on”; it must be forged by creating unique competencies that capture value where others see only noise. The journey concludes with a strategic roadmap for the resilient leader, confronting the existential questions of the performance era: How do we measure AI’s true impact when traditional metrics fail? Can the machine actually reduce productivity if poorly integrated? Under what precise conditions does AI become a source of advantage rather than an anchor of debt? By articulating these strategies, the authors empower the”ethical sentinel” to lead their organization through the fog of adoption. It is a definitive guide to surviving the slow cycle of integration to emerge as a master of the AI-powered marketplace.

Date: 2026
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DOI: 10.1007/978-3-032-25134-3_7

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