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Even as Elon Musk calls philanthropy ‘very hard,’ everyday Americans gave a record $617 billion—despite feeling the squeeze over the cost of living

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AI’s reliance on patterns can lead to ‘somewhat mediocre’ results, warns CEO of design consultancy IDEO

By
Andrew Staples
Andrew Staples
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By
Andrew Staples
Andrew Staples
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December 9, 2025, 8:21 AM ET
Updated December 10, 2025, 9:40 PM ET
Mike Peng, CEO of IDEO, speaking at Fortune Brainstorm Design in Macau on Dec. 2
Mike Peng, CEO of IDEO, speaking at Fortune Brainstorm Design in Macau on Dec. 2 Graham Uden for Fortune
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Can AI be used to generate original work rather than mere “slop”? That’s the question facing many designers who both hope to leverage AI’s power to generate and refine new ideas quickly, and worry about their ability to compete with a flood of AI-generated, yet subpar, content.

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Yet Mike Peng, the CEO of design consultancy IDEO, thinks that human creativity, enhanced by AI, could be the path forward for designers. 

AI’s pattern recognition capability can make it an incredibly powerful tool, noted Peng at Fortune Brainstorm Design in Macau on Dec. 2. But its reliance on averages can lead to “somewhat mediocre” results, he warned.

“Creativity is all about not being mediocre and being on the edge,” he added.

Similarly, AI is excellent at iteration, but only creativity can determine where to apply those iterated ideas. “This comes from taste, curation, discernment—you need to know where to look,” Peng advised.

And while AI might outperform humans in terms of execution, or how to get from “point A to point B,” bringing it to life requires creativity and empathy, which Peng said “can only be done by folks like us.”

So how best to inculcate a creative mindset and unlock the power of AI? “The only way we can get better at it—and the only way we as creative people, as designers, can become superpowered—is to be able to experiment” Peng said.

Playfulness, curiosity and experimentation, along with human-centered design are, hallmarks of IDEO, the world-renowned global design and innovation consultancy founded in Palo Alto in 1991. Peng took over as IDEO’s CEO earlier this year, after spending five years as chief creative officer of Moon Creative Lab, a venture studio affiliated with Japan’s Mitsui.

“There is no play without friction,” Peng noted. “Play is about overcoming something, achieving something.” That’s counter to companies often trying to make their products and services faster and easier to use. To avoid mediocrity, “we have to play, we have to experiment, we have to be on the edge” with new technology, he said.

IDEO, he notes, is “in the business of creating something that AI cannot exactly do on its own.” Yet, for him, the human superpower remains understanding human complexity and interactions.

After all, Peng urged, creatives and designers will “be the ones to bring this experience to life.”

Correction, Dec. 10, 2025: An earlier version of this article misstated Mike Peng’s previous position at Moon Creative Lab.

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