Finding a new business idea has never been easier
Business Watcher with Professor Yannick Dillen
By Yannick Dillen
Professor of Management Practice
At the end of 2022, generative artificial intelligence initiated a shock wave throughout the world, with ChatGPT as the most prominent exponent of this new and revolutionary technology. For entrepreneurs, it was clear that generative AI could help them in many domains, such as market or industry analysis. But when it comes to idea generation, it seemed like there would not be a significant change at first glance. A wrong assumption, so it appears now. Generative AI tools can deliver high-standard creative ideas that go beyond rather generic ideas that many budding entrepreneurs typically have. Yannick Dillen, Professor of Entrepreneurship, explains why and how generative AI can help starting entrepreneurs in their idea-generation process.
Why did you initially think that idea generation was not something that generative AI could do?
ChatGPT and its counterparts could accomplish a lot, but they couldn't replace the human creativity necessary to develop innovative ideas for a start-up. And it’s precisely that search for creative ideas that is the starting point for launching a new venture. Many budding entrepreneurs are struggling with the question: 'Where can I find this killer start-up idea?'. Traditionally, people stay close to their own life experiences. They stick to things they are passionate about and knowledgeable in, such as music, fashion, sports, or nutrition. These business ideas represent potentially significant markets, but they are often not very innovative.
Finding a new business idea has never been easier
By now, we all know that generative AI can be a powerful tool for industry analysis. But idea generation? Can it really compete with the creativity of entrepreneurial thinking? Yes, it seems. And according to research, the likes of ChatGPT can often do a better job of generating ideas than budding entrepreneurs. Want to know the secret? Watch the video!
What made you change your mind? Why is generative AI a game changer for idea generation?
A recent study published in Harvard Business Review indicates that AI is a powerful resource for stimulating creative thinking and generating potentially groundbreaking ideas. It enables divergent thinking by making simple combinations. Give a tool like ChatGPT or Bard the task of listing ten nouns, followed by the instruction to randomly combine three to generate five innovative start-up ideas and you’ll see 'magic happen'.
What is the secret to creating this ‘magic’?
The secret is to not directly ask for ten start-up ideas within a specific sector, but it lies in seeking combinations across different themes. For instance, combining the words 'car,' 'smartphone,' and 'furniture' leads to a list of rather unconventional ideas. Some are more feasible than others, but it offers non-creative people endless possibilities for idea generation. And it doesn't stop there. Ultimately, an idea on its own is just an idea. The most crucial part is to execute it. Generative AI can also assist in conducting thorough competitive analyses, compiling accurate lists of potential customers, and even developing pricing strategies for different business models. The outcome will never be perfect, but it can always provide a foundation to build upon.