AI is a Tool Not an Outcome

According to Statista, in 2020, the power drills market size was estimated at 9.81 billion U.S. dollars worldwide. At an average price of $100 per drill (prices vary widely from $40 for a corded drill to $200 for a high-end cordless, so let’s take it more or less down the middle) that’s about 98.1 million drills sold a year.

I often quote that statistic to my clients and ask them to estimate what percent of the people who bought those 98.1 million power drills actually needed a power drill. Their answers generally range from a cynical 5% to a trusting 100%, and are invariably wrong.

So how many of those people needed a power drill? None. 100% of them needed holes.

Too often business people focus on the tool and not the outcome they need. AI is a tool, not an outcome.

A classic example: In 2023, a New York lawyer named Steven A. Schwartz submitted a legal brief in federal court that cited six cases generated by ChatGPT, all of which turned out to be entirely fictitious. The AI tool not only fabricated the cases but also falsely assured the lawyer of their authenticity when questioned. The court, presided over by Judge P. Kevin Castel, discovered the bogus citations and described the situation as “an unprecedented circumstance.” Schwartz and his firm faced sanctions as a result, and the incident was widely reported as a cautionary tale about the risks of relying on generative AI for legal research without independent verification.

The same is true of consulting services – these again are a tool, but too often businesses opt for the flashiest, best known tool and trust it will produce the best outcome. In choosing AI, consulting services, or technology, keep your eye on the need for a hole, and don’t be dazzled by the flashiest drill.