Ai & the knowledge commons: are you training your competitors?

The hidden cost of generative ai

Tech enthusiast Michael Johnson here. Andrea Pignataro, a veteran in the tech world, is raising a critical point about generative AI. It’s not just about productivity; it's about inadvertently sharing your business secrets with the very tools you're using. In his essay, "The Wrong Apocalypse," Pignataro argues that the widespread use of AI is creating a "tragedy of the commons," where shared resources erode competitive advantage.

How ai learns your business

When you use AI tools like ChatGPT, Gemini, or Claude to draft reports, clean data, or even brainstorm new business strategies, you’re feeding them more than just text. You're teaching them your organizational structure, your preferred arguments, and even your tone of voice. This information is then aggregated and potentially used by other companies.

The "tragedy of the commons" in ai

The "tragedy of the commons" applies here. Each company benefits from using AI, but collectively, that use diminishes the overall value of the AI model. As more businesses train AI on similar data, the models become increasingly homogenized, potentially weakening a sector’s competitive edge. It’s a risk many companies are overlooking in their rush to adopt AI.

Beyond productivity: ai as a knowledge conduit

Many view AI as simply a productivity booster, automating repetitive tasks and freeing up human workers. While this is true in the short term, the long-term implications are far more profound. AI isn't just doing your work; it's learning how you do it. This knowledge can be leveraged to offer solutions directly, potentially reducing the need for human intermediaries.

The risk of shared knowledge

Consider this: every time you ask an AI to restructure a business proposal or draft a legal defense, you’re essentially sharing valuable information about your company's operations. If multiple companies do this, the resulting AI models will understand industry patterns and best practices, potentially giving competitors an advantage. It’s not about avoiding AI altogether; it’s about understanding the risks involved.

What to do about it: a call for awareness

Satya Nadella, CEO of Microsoft, emphasizes empowering individuals and organizations with AI. However, Pignataro argues that simply calculating task automation percentages isn't enough. Companies need to actively consider what they are teaching AI and how they are contributing to the collective knowledge base. The key is recognizing that AI evolves with your business, and every decision you make influences what the AI “knows” and what it can do.