The Role of AI in Business Strategy

This article examines the evolving role of AI in business strategy and decision-making. It highlights the need for companies to integrate AI effectively while maintaining human creativity and strategic differentiation.


The Role of AI in Business Strategy

A year ago, in a column titled "Data-Driven Organizations and Artificial Intelligence: More Analytics or More Strategic?", the discussion was raised about the real use of AI in the strategic design of companies. Despite the common perception that AI could define strategy on its own, it was emphasized that it still does not replace human intuition and creativity, although it can enhance decision-making with predictive and prescriptive models.

Over time, the debate has evolved, focusing on the application of generative AI in business strategy. Michael Porter differentiated in his classic article "What is Strategy?" between operational effectiveness and strategy, highlighting the importance of creating a unique and sustainable position rather than simply optimizing processes. It is emphasized that AI should be used to strengthen a company’s business model and value proposition, instead of homogenizing its strategy with competitors.

Although many executives consider generative AI a strategic priority, only a minority perceive real value in its implementation. This translates into the need to align AI with the organizational structure and not adopt generic approaches, as well as understanding which parts of the business are worth automating decisions and which require human intervention.

To prevent AI from generating homogeneous competition, companies must integrate it into their strategy without losing their unique differentiation. It is important to recognize that technology alone cannot define strategy, and its adaptation to the company's objectives is crucial for generating sustainable competitive advantages. The importance of developing exclusive AI models and not relying on generic solutions to achieve a differential advantage in the market is highlighted.

In summary, the key is to question whether AI is being used to design the future of the company or simply to optimize existing processes. This implies the creation of proprietary AI models and the integration of this technology into the business strategy in a coherent and differentiated manner.