Artificial intelligence seems to have repealed the laws of business physics, allowing “digital native” companies to grow at the stroke of a key and cross traditional market boundaries unimpeded. In their new book, Competing in the Age of AI: Strategy and Leadership When Algorithms and Networks Run the World, HBS professors Marco Iansiti and Karim Lakhani show the inner workings of the “AI factory.” Traditional businesses can’t bolt on AI and analytics and expect to compete. Marco explains how firms can adapt and discusses the implications for workers and public policy.