The Runtime Revolution: How Generative AI Is Reshaping Value and Organisations | LSE Event

Why It Matters

Generative AI shifts value creation from static scarcity to dynamic, real‑time configurations, demanding new organizational strategies and socio‑technical designs.

Key Takeaways

• Value now emerges at runtime, not just from scarcity.
• Generative AI creates novel configurations through layered modular architecture.
• Socio‑technical systems blend human and digital to co‑produce value.
• Experiential computing focuses on real‑time user‑system interactions for value.
• Digital innovation is lateral, enabling endless recombination across boundaries.

Summary

Professor Jung‑Jin Yu’s inaugural LSE lecture introduced the “runtime revolution,” arguing that generative AI is fundamentally changing how value is created and organized.

Yu contrasts the classic scarcity‑based view of value with a “runtime” view where value is composed in unique, moment‑specific configurations. He traces this shift to the layered‑modular architecture of digital technologies, which makes components system‑agnostic and endlessly recombinable, generating what he calls generative innovation.

Using Frank Gehry’s CATIA‑driven building designs and WordPress’s explosion from 2,000 to over 24,000 plugins as case studies, Yu illustrates how computational boundary objects enable non‑linear, chaotic yet highly productive innovation. He also coins “experiential computing,” the idea that the unit of digital value is the real‑time interaction among user, system, and context.

For managers, the implication is clear: organizations must adopt a socio‑technical mindset, prioritize real‑time experiential design, and harness generative AI’s lateral recombination to unlock new sources of competitive advantage.

Original Description

The modern world is built on principles of scarcity: the idea that value falls as supply increases, that technology and systems are designed to produce the same result every time, and that organisations form to minimise the costs and complications of exchange. Generative computing challenges each of these assumptions. Rather than relying on scarcity to create value, generative AI creates value through abundance, context, and variation. It generates unique, situation specific meaningful outputs at runtime, rather than replicating a predetermined design. In this new environment, increased supply can generate greater value, not less. And firms exist to create and capture value from abundance.

Join Youngjin Yoo for his inaugural lecture, where he will set out a new agenda for understanding how this technological and economic shift is reshaping value creation, technological design, and the organisation.

Speaker:

Professor Youngjin Yoo

Chair:

Professor Sarah Ashwin

#AI #Events #London

Full details/attend: https://www.lse.ac.uk/events/ai-1

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