Azeem Azhar from Exponential View breaks it down this way:

Level 1: Do what we do cheaper: (…) automate routine tasks.

Level 2: Do what we do, just do it better: (…) opportunities for qualitative improvements. A major investment bank, for instance, recently used AI to automate much of its unit test coverage. This reduced costs and allowed for more comprehensive testing, improving overall software quality.

Level 3: Do entirely new things. This is where the true potential of AI begins to show (…) But here’s the rub: most businesses are stuck at Level 1 or Level 2. They’re using AI to shave costs or incrementally improve processes, missing the opportunity to strategically rethink what their business could look like (…)