A$$radically human$$approach to human$-$machine interaction is turning assumptions about the basic building blocks of innovation upside down. Specifically, the new utility of small data including the ability to create $$synthetic$$ data to simulate a set of circumstances is bringing the power of AI at scale within reach of entities that previously couldn$$t afford it$.$ Instead of machines $$learning$$ by processing mountains of data, humans can now teach machines based on human experience, perception, and intuition. That means more people throughout organizations can use AI in new ways, based on their individual expertise.The resulting bigger picture? Cumbersome legacy IT architecture is giving way to living systems that can weave together technologies, data, and talent in a hyper$-$digital world of mobile omputing, AI$,$ the Internet of Things $($IoT$),$ and billions of devices.$$These developments$$have opened up vast possibilities for strategy innovation $$ yet only a small number of companies have made a radical leap into new strategies that these radically human technologies have opened up$.$Three of these new high$-$potential strategies include:$$Forever Beta,$$Minimum Viable Idea $($MVI$),$ and$$Co$-$lab.$$We$$ll explain each in detail, with examples of companies that are currently employing them. Though their specific strategies are distinct, the companies that are using these new strategies well share three important characteristics. First, their technology, business strategy, and execution are so closely intertwined as to be nearly indistinguishable. Second, humans not machines are in the driver$$s seat. Third, these companies understand that all companies, no matter their industry, are now technology companies.

Forever Beta strategies offer software$-$enabled products and services that continually evolve and improve after they$$ve been purchased, so that customers see them grow in value and utility over time, rather than fade. For instance Tesla, unlike other automakers, doesn$$t offer yearly updates of its models. That$$s because Tesla puts out a model and then continually improves it after the fact. Tesla owners see their existing cars continually transformed through updates that advance the vehicle$$s autonomous driving capabilities, improve performance, and enhance safety features.Insight Center CollectionSetting Your Corporate Strategy

Beyond a return to $$normal$.$Through cloud$/$edge connectivity with the cars, Tesla monitors performance and provides remote diagnosis and repair. For example, a motor problem involving occasional overheating was diagnosed and repaired by a$$software patch. Tesla drivers are in a constant feedback loop with the company, imparting their human expertise to Tesla$$s neural network and improving it merely by driving.The result is an ownership experience that sees the car continually grow in value and utility. This experience is designed to be an intrinsic part of the usefulness and differentiation of the product for customers, who are, in effect, highly privileged beta users of each new improvement.Signify, formerly Philips Lighting, keeps the latest and greatest technology in its customers$$ hands through Signify circular lighting, an enterprise solution where Signify offers lighting based on uptime and energy needs provided by its customers. The company shouldered responsibility for the lighting throughout the power plants that provide all of the electricity for Dubai, resulting in a$$savings$$of $68\%$ in lighting$-$related energy consumption for the city.By intertwining technology and business strategy so closely, these companies are forming stronger relationships with customers, built on an understanding that the service experiences they purchase today will appreciate in value tomorrow.Minimum Viable Idea strategies use intelligent technologies to precisely target weak links in a traditional industry and provide a superior customer experience that can be quickly scaled to make rapid inroads in the market. Lemonade, a New York$-$based insurance company co$-$founded by Daniel Schreiber and Shai Wininger, offers coverage to renters, condo owners, homeowners, and pet owners. Their AI$-$powered app streamlines getting quotes and settling claims, sometimes in seconds. But,$$says Wininger, $$Lemonade is a tech company doing insurance, not an insurer doing an app

Lemonade has combined AI chatbots, machine learning, and the cloud to focus with laser$-$like precision on the features of trad

$$Q:$01$ How do the Forever Beta,Minimum Viable Idea,and Co$-$lab strategies leverage AI to enhance business innovation, and what are the key differences between them?

Q:$01$ What role does human expertise play in AI$-$driven strategy innovation, and how do companies like Tesla and Lemonade ensure that AI complements rather than replaces human decision$-$making?

Q:$03$ According to the article, why is it critical for companies to integrate AI with business strategy and execution, and what risks do businesses face if they only pursue incremental automation?