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Artificial intelligence (AI) is revolutionising the field of strategy, albeit gradually. Despite its slow adoption, with only 7% of companies using AI for strategy compared to higher uptake in other areas, AI’s potential is significant. AI can assist in various strategic tasks, from descriptive and diagnostic intelligence to predictive intelligence. These tools help executives analyse data, predict scenarios, and make informed decisions, enhancing human judgement rather than replacing it. Companies with rich, structured data and frequent decision-making processes stand to benefit the most from integrating AI into their strategic operations.

AI’s role extends beyond tactical inputs, influencing significant strategic advantages by mitigating biases and enhancing resource allocation. For instance, AI can identify patterns that indicate emerging opportunities, as seen with some leading investment firms. However, AI’s integration in strategy requires collaboration between technology experts and strategists, a challenge due to potential job displacement fears and the need for deep domain knowledge.

Ultimately, the future of AI in strategy is promising, with advancements expected to allow AI to autonomously make strategic decisions, though human oversight will remain crucial. As AI tools evolve, companies that adeptly incorporate them will likely gain substantial competitive advantages.

For a detailed exploration, you can read the full article on McKinsey’s website here.