As artificial intelligence reshapes the business landscape, the traits that set us apart are evolving. Ollie Henderson (Management, 2005) explains why taste - the ability to recognise what works and what matters - is becoming a defining advantage for navigating an AI-enabled world.

Ollie Henderson-800

Since leaving Nottingham, Ollie Henderson has been founding and leading marketing & tech businesses for 15+ years. He now combines speaking and writing with building tools to help teams adapt and succeed in an AI-enabled world, and is the author of bestselling entrepreneurship and leadership bestseller, ‘Work/Life Flywheel’, a Business Book Awards 2024 Finalist.

I've been thinking about taste a lot recently - not the kind that helps you pick a good restaurant, but the kind that helps you build exceptional products and teams.

I recently attended a talk on 'AI & The City,' by Dror Poleg where he explained how we've shifted from a linear economy (predictable inputs and outputs) to a non-linear one where success is governed by unpredictable, disproportionate relationships between effort and outcomes.

Unpredictability is becoming the norm across business. When the relationship between inputs and outputs becomes non-linear, success depends on spotting opportunities others miss – and that's where taste comes in.

This shift is being discussed extensively in tech circles, particularly around AI's impact on software development. Y Combinator (the world's premier startup accelerator that helped launch companies like Airbnb and Dropbox) recently surveyed founders in their current batch. One quote stood out:

"Human taste is now more important than ever as AI coding tools make everyone a 10x engineer."

What's striking is that these aren't novices – these are highly technical founders who could build their products without AI. Yet they're acknowledging a fundamental shift in what creates competitive advantage.

When AI can generate 95% of a codebase (which 25% of YC founders now report), the edge moves from coding skill to product intuition – knowing what's worth building and how it should feel.

Software development may be the canary in the coal mine, but the implications stretch beyond coding.

  • In marketing, when AI can generate endless ad variations, taste helps you select the campaign that will genuinely resonate.
  • In design, when tools can produce infinite iterations, taste determines which direction creates emotional connection.
  • In leadership, when data provides countless possible directions, taste guides which strategy will actually inspire your team.

In this context, as implementation becomes commoditised, taste becomes the critical differentiator.

Why This Is Happening Now

Dror's talk illuminated why this shift is happening with a striking visual: in 1975, tangible assets represented 90% of S&P 500 value. By 2020, that ratio reversed, with 90% coming from intangibles: code, content, brands, and relationships.

These intangible assets follow non-linear patterns where traditional processes break down. Success depends on what Dror calls "low probability, high impact events" – essentially, unexpected opportunities that can't be predicted, only recognised and seized.

AI only accelerates this trend.

And it demands a new set of behaviours and skills. This new landscape favours what investor Ravi Gupta calls 'world-class reactors' over "world-class predictors."

World-class reactors excel at quickly adapting to new information rather than trying to forecast precisely what will happen next. This adaptability becomes crucial in a non-linear world. Organisations that can experiment rapidly, learn quickly, and pivot when needed will outperform those optimised for consistency and efficiency.

Developing Taste Without the 10,000 Hours

The critical question becomes, how do we develop taste when traditional expertise-building paths are being disrupted?

Because having foundational knowledge still matters.

Picasso mastered classical techniques before creating revolutionary abstract art. His famous bull series shows his progression from realistic depiction to abstract essence – but that progression was only possible because he understood the fundamentals.

And it wasn't long ago that software engineering was considered the skill that would future proof your career. Has that changed?

Well, as the Picasso example shows, having a fundamental understanding of what needs to be created, and how, is still important. It's difficult to oversee the work of someone or something if you don't know what 'good' looks like - but the gap between an idea and a finished product is narrowing.

In this respect the balance is gradually shifting toward taste and away from technical implementation. Which means, if you've always had strong intuition but weren't technically inclined, this shift creates new opportunities.

For businesses, this means reconsidering what skills we value and how we develop them.

So what can you do?

  1. Build a reference library: Save examples of exceptional work in your field. Note specifically what makes each piece effective. Review regularly to train your recognition of quality.
  2. Create and compare: For your next project, generate multiple versions instead of perfecting one. Get feedback on which works best and why. AI makes this rapid experimentation possible.
  3. Use AI as a taste gym: Have AI generate several solutions to a problem, then practice critically evaluating them. This builds your judgment muscles faster than traditional learning paths.
  4. Study adjacent disciplines: Spend time learning principles from a field different from yours. These unexpected connections create unique perspectives that others miss.

Start small, but start now.

Want more ideas and insights to help you build great companies and careers?

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