Artificial intelligence (AI) is rapidly changing the way organisations do business. AI tools are used to automate tasks, improve decision-making, and develop new products and services. AI is also having a significant impact on organisational strategy.

In the past, for many organisations, a strategy was based mainly on gut instinct and experience. However, AI is making it possible to collect and analyse massive amounts of data, which can be used to identify trends and patterns that would be invisible to humans. This data can then be used to make more informed decisions about where to allocate resources, how to price products, and what new products and services to develop.

AI is also being used to automate tasks that humans previously did. This can free up employees to focus on more strategic work. For example, AI can be used to automate customer service, which can free up customer service representatives to spend more time resolving complex issues.

AI is also being used to develop new products and services. For example, AI can be used to create personalised customer recommendations or to develop new algorithms for trading financial assets.

Overall, AI is having a profound impact on organisational strategy. AI tools are making it possible to make better decisions, automate tasks, and develop new products and services. This is changing the way organisations compete and the way they create value.

Here are some specific examples of how AI is being used to change organisational strategy:

• Customer segmentation and targeting: AI can segment customers into different groups based on their needs and preferences. This information can then target marketing campaigns and develop products and services that are more likely to appeal to each group.
• Pricing optimisation: AI can optimise prices for products and services. This is done by analysing historical data and current market conditions to determine the optimal price for each product or service.
• Product development: AI can be used to develop new products and services. This is done by analysing customer needs, preferences, and market trends. AI can also be used to generate new ideas for products and services.
• Risk management: AI can be used to identify and manage risks. This is done by analysing data from various sources, such as financial statements, news articles, and social media. AI can also be used to develop risk mitigation strategies.
• Compliance: AI can be used to ensure compliance with regulations. This is done by analysing data from various sources, such as financial statements, contracts, and emails. AI can also be used to develop compliance training programs.

These are just a few examples of how AI is being used to change organisational strategy. As AI develops, even more changes will likely occur in how organisations compete and create value.

By Andrew Constable MBA, LSSBB

Keywords: Business Strategy, Innovation, Leadership