Can AI Develop Strategy? Hype or a Real Competitive Advantage?
Strategy and AI: Why Humans Are Becoming More Important, Not Obsolete.
Artificial intelligence is currently transforming nearly every aspect of business. Strategic planning is no exception. But can AI actually develop strategies? Or is it merely another tool in the toolbox of modern executives? Prof. Dr. Julia Hautz of the University of Innsbruck is exploring this question in an ongoing research study and offers fascinating insights into the future of strategic business management.
The High Hopes for AI: Strategy at the Push of a Button?
Many companies begin working with AI with a similar hope: upload data, ask a question, and receive a ready-made strategy. The reality is quite different. The study’s initial interviews reveal that many executives initially hoped for a “magic button.” A single push of a button that automates complex strategic decisions and significantly simplifies the strategy process. But it was precisely this expectation that went unmet. Instead of ready-made strategies, AI primarily provides support with analysis, structuring, and documentation. The actual strategic work remains a leadership task.
Strategy becomes more efficient—but not necessarily better
A key finding of the study so far: AI generates significant efficiency gains. Information can be analyzed more quickly, market analyses can be prepared more easily, and large volumes of data can be processed in a structured manner. Many of the companies surveyed report significant time savings on administrative and analytical tasks. However, the real added value lies not only in speed. The time saved allows executives and strategy teams to focus more on the truly important questions: Which decisions are relevant? What opportunities are emerging? What risks must be taken into account? AI handles the groundwork. Strategic thinking remains a human endeavor.
Open Strategy: Why More People Lead to Better Strategies
For many years, a key focus of Julia Hautz’s research has been the concept of “open strategy.” This approach involves developing strategy not only within small leadership circles but also incorporating the perspectives of many employees into the process. The problem with this is that the more people are involved, the greater the complexity becomes. This is precisely where AI unleashes its potential. It can collect, structure, and distill large volumes of ideas, feedback, and information. As a result, for the first time, it becomes realistic to include many voices in strategic discussions without getting bogged down in an information overload and coordination chaos. The surprising insight: More AI can lead to greater participation and more humanity in the strategy process.
People remain the true competitive advantage
If all companies have access to the same AI models, a crucial question arises: Where will differentiation come from in the future? For Julia Hautz, the answer lies not in the technology itself, but in the people who use it. AI democratizes access to analytics and strategic knowledge. What was once reserved for large corporations with extensive strategy departments is now accessible to small and medium-sized enterprises as well. The competitive advantage, therefore, does not come from the use of AI alone, but from the ability to mobilize the knowledge, creativity, and perspectives of one’s own employees more effectively than others.
The future belongs to multi-human AI systems
One of the most intriguing ideas to emerge from the discussion is this: The future of strategy lies neither in individual people nor in individual AI agents. Rather, successful companies will develop what are known as “multi-human-AI systems.” In these systems, people and various AI applications work together on strategic issues. AI handles analysis, structuring, and knowledge management. People contribute experience, contextual understanding, creativity, and judgment. The real strength lies in the interplay between the two.
Decisions Remain a Top Priority
No matter how powerful AI becomes, one key limitation remains. Strategic decisions have far-reaching consequences for companies, employees, and markets. They entail responsibility and often raise ethical questions as well. That is why a clear picture emerges from the interviews: Companies want AI to provide decision-making support, scenarios, and recommendations. However, the final decision should still rest with humans. AI can present options, but it cannot assume responsibility.
For whom this episode is worthwhile
This episode is aimed at CEOs, managing directors, strategy leaders, and anyone who wants to understand how artificial intelligence is changing strategic work. It explains why AI neither replaces strategy nor makes people obsolete. Instead, it opens up new possibilities for leveraging knowledge, engaging people, and making better decisions.
🎧 Listen now and discover why the future of strategy isn't about people or machines—but about people and machines.
SHOWNOTES
Julia Hautz https://www.linkedin.com/in/julia-hautz-307504114/
Christian Underwood https://www.linkedin.com/in/christianunderwood/
Strategic Decision Intelligence: https://strategicdecisionintelligence.ai
Magazine “Hope Is Not a Strategy” https://shop.strategyframe.ai/products/hoffnung-ist-keine-strategie-ii-1-strategic-decision-intelligence
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