AI is changing costs. and availability of expertise, and will fundamentally change how businesses manage and compete. At its most basic level a business can be thought of as a differentiated bundle of expertise organized to accomplish specific tasks. Expertise—which we define as the combination of deep theoretical knowledge and practical knowledge in a specific domain—can take many forms within a business. A doctor’s office requires not only the medical knowledge of a practitioner to diagnose a patient quickly and accurately, but also the administrative skills to run a practice. A software company needs expertise not only in software engineering but also in marketing, sales, operations and finance to bring its products to market. Companies create value by leveraging their expertise at scale to solve their customers’ problems. They typically possess this in a variety of areas, but most differentiate themselves through their unique expertise in only a handful of activities that are core to how they create a competitive advantage. Toyota’s superior expertise in lean manufacturing has helped it become one of the world’s leading automakers. Walmart has developed superior expertise in distribution, Procter & Gamble in consumer marketing and Nvidia in graphics processing unit (GPU) design.