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How AI Is Redefining Strategy Development

AI strategy development

Artificial intelligence is moving beyond support functions and beginning to redefine how companies design and execute strategy. While leaders have always relied on data and analysis to make big decisions, AI brings a new level of speed, depth, and objectivity to this process.

Strategy in the Age of AI

Traditional strategy involves gathering data, extracting insights, creating strategic options, and making irreversible decisions that shape the future of the business. For decades, data analytics has supported this work, but the arrival of AI changes the equation. Instead of simply providing inputs, AI can now combine vast amounts of information, run complex analyses, and even suggest viable strategic moves.

This marks an inflection point comparable to the introduction of strategic frameworks in the 1970s and 1980s. Strategy is no longer just about human interpretation—it’s about how human creativity and AI-powered insights come together.

Where AI Creates the Most Value

AI’s impact is visible across every stage of strategy, but today it delivers the strongest results in the design phase:

  • Assessing the organization’s starting point within its industry

  • Analyzing competitors’ moves

  • Sizing potential markets

  • Estimating the value of different initiatives under multiple scenarios

From there, AI can continue to play a role in mobilization (resource allocation, organizational alignment) and execution (monitoring results, testing assumptions, and adapting).

Five Roles AI Can Play in Strategy

  1. Researcher – Scans vast data sources to identify opportunities (e.g., M&A targets or emerging markets) faster and more thoroughly than human teams.

  2. Interpreter – Converts data into insights, highlighting adjacencies, customer needs, or trend shifts that may open new avenues for growth.

  3. Thought Partner – Challenges assumptions, tests strategies against frameworks, and helps overcome biases or blind spots.

  4. Simulator – Models different scenarios, competitor reactions, and market dynamics, helping strategists stress-test their choices.

  5. Communicator – Translates complex strategies into narratives that resonate with stakeholders across levels and formats.

A Case in Practice

One Southeast Asian regional bank recently leveraged AI to expand into new markets. By scanning industry data and identifying promising trends, the AI tool helped narrow the focus to digital financial services and microcredit. It also simulated potential outcomes, built due diligence profiles for potential acquisitions, and stress-tested growth options. This combination of AI-driven analysis and human judgment allowed the bank to move forward with greater confidence and precision.

Challenges to Keep in Mind

AI brings incredible potential, but strategists should remain aware of risks such as:

  • Bias in training data

  • Overreliance on generic insights that lead to generic strategies

  • Hallucinations or false outputs if tools are not validated

  • Information overload that requires careful synthesis by leaders

Building a proprietary data ecosystem, investing in strong processes, and ensuring executive-level interpretation are essential to avoid these pitfalls.

The Path Forward

For leaders and strategists, three steps stand out:

  1. Learn how AI works – Understanding how models generate insights helps leaders ask better questions and spot limitations.

  2. Experiment today – Use AI to support research, analysis, and brainstorming, and identify where custom tools are needed.

  3. Develop proprietary insights – Blend AI outputs with unique internal data, customer input, and expert knowledge to create distinctive strategies.

AI will not replace human judgment or the bold choices leaders must make. But it will give strategists faster insights, more rigorous analysis, and the ability to adapt strategies with greater agility. Those who combine the creative power of human vision with the analytical strength of AI will define the next era of competitive advantage.

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