How AI Is Rewriting Business Rules—Just Like Globalisation Did in the ’90s!

The business world is no stranger to transformative waves of change. In the 1980s and 1990s, the rapid globalisation of markets reshaped how companies operated, introducing new efficiencies (do you remember JIT or just in time?), expanding opportunities, and forcing adaptations that fundamentally altered the corporate landscape. Fast forward to today, and we are witnessing a similar revolution—this time driven by artificial intelligence (AI). Much like globalisation, AI is ushering in profound changes in business operations, strategies, and workforce dynamics. The parallels between the rise of AI and the globalisation era are striking, as both have or will change the way organisations approach markets, workforces, and competition.

Globalisation and AI as catalysts for operational change

In the 1980s and 1990s, businesses capitalised on globalisation by optimising supply chains, shifting manufacturing to lower-cost regions, and taking advantage of new markets. The drive for efficiency and reduced operational costs was paramount, as globalisation allowed companies to stretch their operational footprints and scale quickly. This era was marked by the offshoring of jobs, strategic outsourcing, and the rise of multinational corporations that leveraged economies of scale to outpace competitors.

Similarly, AI today is driving unprecedented levels of operational efficiency. Automation, machine learning, and data analytics are reducing costs and boosting productivity by optimising everything from supply chains to customer service. The automation of routine tasks and the deployment of AI in decision-making processes have parallels with the global outsourcing strategies of the past, where businesses sought to cut costs and improve efficiency. However, unlike the geographical redistribution of jobs in the globalisation era, AI is an internal transformation, rethinking how work is done within the organisation itself.

AI revolution reshaping the workforce just like globalisation did

The globalisation era introduced significant workforce shifts, with many jobs migrating from developed countries to emerging markets. This led to concerns over job loss in certain industries, particularly manufacturing, and required workers to reskill and adapt to a more competitive global labour market. Organisations had to navigate these changes by fostering new talent pipelines, developing global workforces, and ensuring that employees could adapt to a rapidly evolving marketplace.

AI is bringing about a similar reconfiguration of jobs. Automation is taking over repetitive, manual tasks, while AI-driven insights are reshaping roles in fields like marketing, finance, data analytics, human resources and customer service. Just as globalisation demanded that workers adapt to a new economic order, AI is requiring businesses to upskill and reskill their workforce. The demand for data scientists, machine learning engineers, and AI specialists is skyrocketing, while many traditional roles are evolving to incorporate AI-enhanced decision-making processes.

In both eras, workforce disruption has been inevitable. Globalisation encouraged geographic mobility and adaptability, while the rise of AI is fostering an era of digital transformation and skill recalibration. The challenge for businesses today is how to manage this change, ensuring that their workforce is prepared for an AI-driven future much like they prepared for a globalised economy.

Rethinking competitive strategies

Globalisation created a new competitive landscape. Companies were no longer just competing with local businesses, instead they were up against global giants with far-reaching capabilities. To succeed, organisations had to adopt new strategies, including expanding internationally, forming global partnerships, embracing cross-border mergers and acquisitions or developing a very niche space. Flexibility and strategic foresight were critical for businesses looking to thrive in an increasingly interconnected world.

In a parallel fashion, the rise of AI is forcing companies to rethink their competitive strategies. AI is creating new competitive advantages for organisations that can leverage data and machine learning to understand markets, predict trends, and personalise customer experiences. Just as businesses had to rethink their strategies to compete globally, they now need to adapt to AI-powered competition.

AI is also fostering the development of new types of partnerships, similar to how globalisation encouraged cross-border collaboration. Today, companies are forming alliances with tech firms and AI startups to gain access to cutting-edge technologies and AI expertise, much like they once partnered with international firms to gain access to new markets and global supply chains.

Tapping into new opportunities

Globalisation opened up vast new markets for businesses in the 1980s and 1990s, enabling organisations to sell products and services to consumers on a global scale. This expansion was accompanied by a wave of innovation, as companies adapted their offerings to suit diverse cultural and economic contexts. The rise of multinational corporations and the advent of global branding were hallmarks of this era.

Similarly, AI is unlocking new opportunities for market expansion and innovation. AI-powered insights are enabling businesses to enter new markets with precision and scale. Through advanced analytics and predictive modelling, companies can understand emerging customer needs, optimise product development, and create personalised marketing strategies.

Regulatory challenges in this new AI era

The globalisation era saw the rise of complex regulatory frameworks as governments sought to manage cross-border trade, intellectual property, and labour rights. Businesses had to navigate a patchwork of international laws and regulations, ensuring compliance while maintaining their competitive edge.

AI is posing similar regulatory challenges today. As AI-driven technologies proliferate, governments are grappling with how to regulate AI’s impact on a range of issues including privacy, ethics, and employment. Organisations must stay ahead of the regulatory curve, understanding both the risks and the benefits of adopting AI. Much like during the globalisation era, companies that effectively manage regulatory risk while embracing new opportunities will emerge as leaders in the AI-driven economy.

It’s all change, but change is not new

The rise of AI in business mirrors the globalisation movement of the 1980s and 1990s in many ways. Both eras are characterised by rapid technological advancements, operational efficiency gains, workforce disruption, and the creation of new competitive landscapes. Just as globalisation fundamentally reshaped the way businesses operated, AI is now rewriting the rules of business once again. The companies that succeed will be those that embrace AI’s transformative power, adapt to its workforce demands, and innovate in ways that meet the needs of an increasingly AI-driven world.