Imagination is More Important than Knowledge: The Future of Strategic Differentiation in an Automated World
Issue #34: As automation reshapes every industry, human imagination emerges as the most valuable asset, unlocking strategic potential.
Introduction
In 2023, I explored how GPT-4 could act as a catalyst for creativity, particularly in strategy development. My fascination centered around the potential of AI to help us recapture a childlike sense of exploration, untethered from rigid, process-driven structures. The idea was simple: GPT-4 could enable spontaneous, free-flowing creativity in a strategic world increasingly dominated by efficiency. But the conversation has evolved, and it’s time to go deeper.
Today, the world is witnessing an even more profound shift. Everything that can be automated is being automated. But rather than seeing this as a threat to human ingenuity, I believe it reveals something critical: automation doesn’t replace imagination. It enhances it. The real strategic value comes not from tasks being completed faster, but from the imaginative leaps between those tasks—leaps that algorithms are less adept at.
The future belongs to those who embrace "imagination differentiation." While AI can handle most (eventually all) general knowledge, it’s our ability to dream, envision, and create in the spaces between that will define the next wave of business strategy. Let me take you on a journey through this evolution.
Automation and the Strategic Gap
For years, the maxim has been clear: "If it can be automated, it will be." This trend has been particularly evident in industries ranging from manufacturing to marketing, where repetitive tasks and even complex processes have been handed over to machines. But automation, while powerful, is also blunt. It doesn’t nuance or innovate; it follows rules. This leaves a gap—a gap between automated tasks where human imagination can flourish.
In industries like mine, we’ve seen firsthand how imagination is becoming the critical differentiator. When I graduated in 2010, brands like Disney, Nike, and Starbucks were at their zenith. Working at Disney, I encountered a marketing department so rigid with brand guidelines that you could hardly do anything beyond the prescribed rules. At the time, that rigidity worked. But now, that same inflexibility is stifling. Strict adherence to traditional brand codes, once the pillar of success, is now poisoning creativity and stunting growth.
Brands that cling too tightly to their established identities are losing ground. Just look at the numbers:
Disney's stock has declined 53% from its 5-year high.
Nike is down 50%.
Starbucks is down 24%.
These declines are more than just market fluctuations—they are signals. Signals that even the strongest brands, protected by their traditional moats, are vulnerable when they fail to leverage imagination. The world is changing too quickly for rigid systems. Innovation must happen across all channels—paid, owned, and earned media—fueled not just by technology and frameworks, but by the creativity that technology liberates.
The Role of Imagination in an Automated World
Automation has a role in making us more efficient. But in the spaces between automated processes, human imagination becomes the real competitive advantage. Take artificial neural networks (ANNs) as an example. They can simulate complex decision-making processes, but it’s the human ability to imagine what happens between those layers of neurons, to think beyond the algorithms, that drives true innovation.
Neural networks, like the Lego bricks of imagination, allow us to connect layers and build endlessly, but they lack the organic leap that human imagination provides. Whether it's supervised, unsupervised, or reinforcement learning, AI learns from patterns. It doesn't dream. It doesn’t envision the world it has never seen.
As we push into the era of deep learning, we can wire our imagination into these systems to amplify our creativity. Each connection, each backpropagation within these networks, provides us with a unique opportunity to inject our human flair. Some models may vibe with our thought process better than others (maybe GPT-4 resonates with you more than Claude), but the true value lies in how we use these tools to extend our imagination beyond what’s possible in a purely mechanistic world.
There is a clear process for automated driving, what if we show how our imagination can be enhanced alongside this knowledge evolution?… It could look something like the below:
The different stages could result in different levels of imagination opportunities across different tasks:
Stage 1: No Imagination Enhancement (Assisted Automation)
Media Buying Automation: More time is spent on manual media placements, but due to AI automating this process, more imagination time can be spent on refining ad narratives and storytelling.
Stage 2: Limited Imagination Enhancement (Partial Automation)
Creative Campaigns: More time is spent analyzing campaign performance manually, but due to AI analyzing data, more imagination time can be spent on exploring new creative angles for the campaign.
Stage 3: Moderate Imagination Enhancement (Conditional Automation)
Content Creation: More time is spent creating content variations manually, but due to AI generating multiple options, more imagination time can be spent on selecting and shaping the most innovative creative direction.
Stage 4: High Imagination Enhancement (Human-AI Collaboration)
Brand Strategy: More time is spent researching market trends, but due to AI predicting trends, more imagination time can be spent on envisioning bold, disruptive strategies that challenge the status quo.
Stage 5: Full Imagination Enhancement (Complete Automation)
Global Campaigns: More time is spent managing multi-market rollouts, but due to AI automating campaign execution, more imagination time can be spent on pushing creative boundaries and developing high-impact, visionary concepts.
A Case for Imagination Differentiation
Consider this: when everyone has access to the same automated processes, the question becomes, what makes you different? If the strategic playing field is leveled by machine learning, your edge lies in the imaginative decisions you make in the spaces automation can’t or by choice isn’t touching.
For me, “imagination differentiation” is the key. It’s about using technology as a scaffold for creativity, not as a crutch. With GPT-4, I’ve brainstormed with virtual versions of Aristotle, Karl Marx, and historical figures, leveraging their simulated thought patterns to spark new ideas. But these simulations didn’t replace my own thinking—they extended it, creating a space where imagination could roam free, unbound by the constraints of time or resources.
This concept parallels what we’ve seen in the automotive industry’s journey toward full automation. Just as driverless cars move through stages of automation (from assisted driving to fully autonomous), our imagination, too, can evolve in stages as it interfaces with AI.
We begin with limited imagination enhancement, where we use basic tools for support. As automation handles increasingly complex tasks, we free up cognitive space to explore new possibilities. In the final stage, full imagination is unleashed, with AI taking over routine decision-making, leaving humans to push the boundaries of what’s creatively possible.
The point is clear: it’s not about being more like machines. It’s about being more human. As machines do what they do best, we must do what only we can do—imagine.
I got the idea for using the automative 6 stages of automation from Erik Brynjolfsson… He has spoken about this a few times in his lectures:
The Decline of Rigid Branding: Lessons from Disney, Nike, and Starbucks
Reflecting on my early career with Disney, I recall the overwhelming control exerted by brand guidelines. At the time, it felt necessary. But in today’s fast-paced, digital-first world, such rigidity is a liability. It limits creativity, stifles innovation, and—most critically—hampers growth.
Disney, Nike, and Starbucks thrived in an era of broadcast media, where consistency was king. But today, audiences crave dynamism, and the static nature of these once-untouchable brands is showing its age. Strict adherence to old brand codes has left them vulnerable, as seen in their market declines and strong new entrants like Cocomelon, On, and Blue Bottle Coffee.
What these brands need is not more control, but more imagination. They need to rethink their creative processes, embracing the chaos that comes with innovation in the age of AI. The brands that will win in the future are those that break free from their old molds and allow creativity to flow through all layers of their marketing ecosystems.
What does this all mean…
As we stand on the edge of full automation, the challenge isn’t how to replace human effort but how to enhance it. The strategic leap forward will not come from faster algorithms or more data but from our ability to dream bigger, to imagine new possibilities that connect with other humans… Arguably today we make too much stuff that’s just built for algorithms.
Automation will happen. The question is, where do we fit into that landscape? The answer lies in imagination. Machines can mimic patterns, predict outcomes, and automate processes, but they can’t tap into the creative reservoir that drives humanity forward.
As we collide more layers of automation with our own cognitive potential, the value of "imagination differentiation" will become clearer. In the spaces where machines cannot tread, human creativity will not only survive—it will thrive. The future of strategy lies in leveraging AI to free our minds, so we can focus on what really matters: pushing the boundaries of what’s possible.
Imagination, after all, is more important than knowledge… As Metaculus charts the battle for knowledge is not something human’s will win in the near future. Thankfully imagination is a lot more fun anyway:
Principles for Imagination Differentiation in Strategy Development
As AI becomes more integral to strategic workflows, adopting principles that encourage a safe and fertile environment for "Imagination Differentiation" is essential. These guiding tenets promote a culture that values creative deviations, unexpected discoveries, and productive 'rabbit hole' explorations, setting organizations apart from predictable, algorithm-driven outcomes.
With this in mind, the IMAGINE framework introduces principles for fostering a unique synergy between human creativity and AI in strategy development:
I - Integrity in Output:
Maintain accuracy and truthfulness in AI-generated content but allow room for explorative errors that might spark creative insights. Establish mechanisms to evaluate when deviations from accuracy could lead to creative or innovative opportunities without compromising ethical standards.
M - Mitigation of Bias:
Actively reduce bias in AI algorithms while promoting diverse perspectives that enhance creativity. This involves not only correcting for fairness but also deliberately introducing varied data inputs that can lead to unexpected and valuable divergences in output.
A - Accountability:
Ensure clear accountability for AI's actions and outputs, documenting all processes and decisions. However, maintain a culture where 'safe failures' are permitted and viewed as a source of learning and creative enrichment.
G - Growth through Learning:
Encourage perpetual learning and adaptation, not just to improve AI’s accuracy but also to expand its capacity for generating novel, thought-provoking ideas. Value insights gained from deviations and 'wrong' turns as opportunities for growth and differentiation.
I - Innovation and Inspiration:
Leverage AI as a tool to challenge conventional thinking and inspire unconventional ideas. Promote an environment where AI and humans collaborate to push the boundaries of creativity, using AI-generated anomalies as sparks for breakthrough ideas.
N - Nurture Human Judgment:
Emphasize the importance of human intuition and judgment in guiding AI applications. Recognize and explore the creative potential in AI’s 'mistakes' or unusual outputs, using human expertise to steer these into productive and imaginative avenues.
E - Ethical Engagement:
Engage ethically with all stakeholders, ensuring openness in how AI is used and the purposes it serves. Foster an environment where stakeholders are encouraged to engage with and reflect on AI’s creative processes, including its less predictable aspects.
By embracing these principles, strategy development becomes a landscape where curiosity, exploration, and resilience thrive. Rather than following the trajectory of autonomous driving AI—which seeks to optimize out "stupid mistakes"—this framework preserves and even values these "mistakes" as they often lead to unanticipated discoveries. This approach positions organizations to stand out in a tech-driven landscape, leading through imagination rather than mere automation.
What I take away personally…
As I scale my knowledge and double down on imagination, my focus is on cultivating an approach that values curiosity, exploration, and human intuition alongside AI capabilities.
Rabbit Hole Exploration: Dive deeply into complex problems and unknowns, actively seeking new insights and unconventional solutions. Allow AI to support this exploration by introducing varied data and perspectives that encourage creative deviations and open new avenues for breakthrough thinking.
Innovative Connections: Use AI not just to streamline tasks but as a tool to forge unexpected and transformative links between ideas. By blending diverse inputs, I can fuel creativity, discover new patterns, and ultimately reach innovative, high-impact solutions that may otherwise go unnoticed.
Growth Opportunities: Embrace AI as a partner in identifying untapped markets and sectors, using its predictive capabilities to unlock growth opportunities. Yet, the real differentiation lies in applying human judgment to steer these insights, ensuring that the pursuit of growth remains both imaginative and ethically grounded.
On a personal level, in this digital age, I feel we’ve created too many systems that are optimized for algorithms rather than for people. AI should not perpetuate this trend; instead, it should help us rediscover what it means to create and connect on a human level. I want to make space for fun, exploration, and ongoing development—for both myself and my work.
On an organizational level, my goal is to elevate not only output but revenue per head. Knowledge work has traditionally been hard to scale. It’s easy to make bottom-line numbers bigger but much harder to increase value per individual. Looking at examples like OnlyFans—with 42 employees generating $1.3 billion in revenue, translating to nearly $31 million per employee—This just isn’t possible ‘yet’ in knowledge work—Other tech giants have set a very high bar. Achieving similar scalability will demand a commitment to principles that balance efficiency with imagination, allowing both AI and human insight to work in harmony:
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These are truly inspiring times and the rabbit hole goes much deeper…