240. Improving strategy with AI

This episode explores the transformative role of generative AI in corporate strategy development. Against the backdrop of McKinsey's "strategy method," the discussion highlights how AI accelerates hypothesis formulation and frees strategists to focus on creative problem-solving. More significantly, the conversation details five emerging roles for AI in strategy: researcher, interpreter, thought partner, simulator, and communicator. For instance, AI can identify potential M&A targets, analyze market dynamics, and even simulate various strategic scenarios. However, the panelists emphasize the importance of human oversight, acknowledging AI's limitations and the need for expert judgment to interpret results and mitigate risks like "hallucinations" and data biases. In contrast to concerns about AI replacing human strategists, the discussion concludes that AI empowers strategists to be more agile and innovative, leading to quicker decision-making and deeper insights. What this means for strategy teams is a shift from data analysis to AI architecture, requiring a deeper understanding of AI capabilities and the development of customized tools to leverage proprietary data for competitive advantage.