Hi

Business strategy is all about making choices - where to compete, how to win, and what to prioritise. Traditionally, businesses relied on experience, market research, and intuition to make these decisions. Now, artificial intelligence (AI) is changing the game. 

AI can analyse vast amounts of data, identify patterns, and help businesses make better decisions faster.

But AI isn’t here to replace business leaders. Instead, it’s a tool that supports human judgment, helping businesses make smarter, more informed choices.

How AI helps in strategy

Finding and organising information

One of the hardest parts of strategy is gathering information. Businesses need data about customers, competitors, and market trends. In the past, this took time and effort. AI can now scan millions of sources in seconds, pulling together useful insights. For example, if a company wants to acquire another business, AI can quickly shortlist potential targets based on specific criteria, saving weeks of work.

Spotting market trends

Understanding market trends is key to making the right moves. AI can analyse customer reviews, patents, financial reports, and social media conversations to detect trends before they become obvious. For example, if demand for eco-friendly packaging is rising, AI can spot the signals early, giving businesses a head start.

Testing ideas and predicting outcomes

Business leaders often face tough decisions—like launching a new product or entering a new market. AI can simulate different scenarios and predict potential outcomes. For example, before changing prices, a company can use AI to estimate how customers and competitors will react. This reduces the risk of bad decisions.

Challenging assumptions

AI can act as a second opinion, identifying blind spots and questioning assumptions. If a company believes expanding to a new region is a good idea, AI can analyse similar cases from the past, highlight risks, and suggest alternatives. This helps businesses avoid costly mistakes.

Communicating strategy clearly

Even the best strategy won’t work if employees, investors, and customers don’t understand it. AI can help tailor messages for different audiences, ensuring everyone is aligned. It can also summarise complex reports into simple, clear insights.

What business leaders should consider

AI is a powerful tool, but it has its challenges. First, the quality of AI’s recommendations depends on the quality of data it uses. Businesses need access to reliable, high-quality data to get the best results. Second, AI can provide insights, but humans still need to make the final decisions. Business leaders must learn how to use AI without relying on it blindly.

AI also makes it easier to gather information, but that doesn’t mean every insight is useful. Leaders need to separate valuable signals from distractions. Lastly, businesses should invest in the right AI tools and integrate them into their strategy process, rather than seeing AI as a quick fix.

How to get started with AI in strategy

The best way to get started is to learn about AI and explore its capabilities. Business leaders don’t need to be AI experts, but they should understand how it works and what it can do. Businesses should start small, experimenting with AI in areas like research, customer insights, and scenario planning.

Another important step is to develop unique data sources. AI works best when it has access to proprietary information that competitors don’t have. This gives businesses an edge and helps create strategies that stand out.

AI is not a magic solution, but it is a game-changer. Businesses that embrace AI and learn how to use it effectively will gain a competitive advantage. The key is to combine AI’s analytical power with human creativity and judgement.

Are you ready to bring AI into your business strategy? 

Noel Guilford