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- Herausgeber: Bentham Science Publishers
- Kategorie: Fachliteratur
- Sprache: Englisch
AI-Driven Strategic Management: Navigating the Future of Business provides both conceptual clarity and practical guidance in AI-driven Strategic Management, equipping readers with the knowledge to harness AI in navigating uncertainty and sustaining long-term competitiveness. Beginning with an overview of the AI revolution in strategic management, the book discusses organizational enablers of AI adoption, including culture, talent, and leadership. Subsequent chapters examine how AI transforms decision-making, market forecasting, competitive positioning, and resource allocation across time, talent, and capital. The volume also integrates global perspectives, highlighting opportunities and challenges in emerging markets such as Africa. Real-world case studies reinforce theoretical insights, ensuring readers grasp both the opportunities and risks of AI in business strategy. Key Features: Explains the evolving role of AI in shaping modern strategic management. Demonstrates AI’s impact on decision-making, market forecasting, and competitive positioning. Addresses ethics, governance, and sustainability in AI-driven strategies. Highlights global perspectives with a focus on emerging markets. Provides practical insights through real-world case studies and applications.
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Seitenzahl: 246
Veröffentlichungsjahr: 2025
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FOREWORD
As a business leader who has spent decades navigating the ever-changing landscape of corporate strategy, I have seen technological innovations come and go. However, few developments have had as profound an impact As artificial Intelligence. The dawn of AI represents not just an evolution but a revolution in how businesses make decisions, allocate resources, and engage with customers.
This book, AI-driven Strategic Management: Navigating the Future of Business, is both timely and necessary. The author has done an exceptional job of exploring the vast potential AI holds for strategic management while addressing the complexities and challenges it introduces. As we stand on the brink of this new era, it is crucial for business leaders, entrepreneurs, and strategists to understand how AI can be integrated into their strategic vision.
I have had the privilege of working with organizations that are leading the way in AI adoption. The results are undeniable: improved decision-making, greater efficiency, and the ability to foresee and adapt to market shifts more rapidly than ever before. However, with great power comes great responsibility. The ethical implications of AI and its potential to disrupt industries cannot be ignored.
The book offers not only a roadmap for navigating the future of AI in business but also an invitation to engage thoughtfully with this transformative technology. I highly recommend this book to anyone seeking to understand how AI is reshaping the world of strategic management.
PREFACE
In recent years, AI has moved from being a futuristic concept to a fundamental driver of business transformation. When I first began researching the intersection of AI and strategic management, it became clear that we are witnessing a paradigm shift in how businesses approach strategy. The ability to process and analyze data at scale, automate decision-making processes, and anticipate market changes in real-time is giving businesses an unprecedented level of agility and foresight.
This book is the culmination of years of research, analysis, and conversations with thought leaders and practitioners in the fields of AI and business strategy. I have witnessed firsthand the profound changes that AI has brought to organizations across various sectors, from finance and healthcare to manufacturing and retail. However, there is still a gap in understanding how to fully integrate AI into strategic management frameworks. Many organizations are either hesitant to adopt AI due to fear of the unknown, or they have implemented AI solutions without a cohesive strategy to guide their usage.
AI-driven Strategic Management: Navigating the Future of Business aims to bridge this gap by offering both theoretical insights and practical approaches. My hope is that this book will empower business leaders to confidently embrace AI as a powerful tool for innovation, optimization, and long-term success.
INTRODUCTION
The rapid advancement of Artificial Intelligence (AI) has transformed industries across the globe, revolutionizing the way businesses operate, compete, and innovate. In the realm of strategic management, AI is no longer a distant concept or experimental tool; it is a game-changer that is reshaping decision-making processes, market strategies, and organizational structures. AI-driven tools now enable businesses to analyze vast amounts of data, forecast market trends with unprecedented accuracy, and automate complex tasks, allowing leaders to focus on innovation and value creation.
This book, AI-driven Strategic Management: Navigating the Future of Business, probes into how AI is revolutionizing the core aspects of business strategy. From harnessing the power of predictive analytics to optimizing resource allocation, AI has become an essential component in developing competitive advantages in the modern business landscape. As organizations face an increasingly complex and dynamic environment, AI provides the insights and capabilities to navigate uncertainty, optimize operations, and foster sustainable growth.
Throughout this book, we explore practical applications, ethical considerations, and challenges associated with integrating AI into strategic management. Whether you are a business leader, entrepreneur, or strategist, this book will provide valuable insights and actionable strategies to leverage AI in shaping the future of your organization.
An Overview of the Revolution of Artificial Intelligence (AI) in Strategic Management
Esther AsieduAbstract
This chapter explores the transformative role of Artificial Intelligence (AI) in strategic management, focusing on its impact on organizational functions, data analysis, and executive decision-making. The research highlights that AI is no longer an optional tool but a necessity for strategic planning, project management, and organizational alignment. Companies that successfully integrate AI into their management practices benefit from enhanced efficiency, real-time data-driven decision-making, and improved adaptability to market changes. AI-powered solutions provide a competitive advantage by enabling businesses to streamline operations, enhance predictive capabilities, and optimize resource allocation. Organizations should proactively invest in AI technologies to strengthen their strategic management practices. Business leaders must foster a synergy between human expertise and AI-driven insights to maximize the benefits of AI integration. Continuous refinement of AI systems and alignment with organizational goals will be critical for long-term success. Businesses that embrace AI’s full potential will remain competitive and innovative in an evolving corporate landscape.
INTRODUCTION
In the current fast-paced market, successful strategic management is crucial for businesses of all sizes. As industries rapidly transform, companies that do not swiftly adjust risk falling behind, becoming obsolete, or even ceasing to exist. The repercussions of inadequate strategic management are severe, including lost opportunities, reduced market share, and an inability to handle unexpected challenges. To circumvent these issues, progressive organizations are overhauling their strategy development methods. Traditional, slow approaches are being replaced by more flexible, responsive techniques that allow businesses to remain relevant in swiftly changing environments. This transition indicates a growing understanding that strategy must evolve from a yearly, static exercise to a continuous and dynamic process. In this pursuit of strategic flexibility, Artificial Intelligence (AI) has emerged as a revolutionary tool. AI enables businesses to
outperform competitors by delivering swift, precise, and instantaneous insights. By leveraging AI, companies can analyze enormous datasets, recognize emerging patterns, and make well-informed decisions with unparalleled speed and accuracy. This technological advantage allows organizations to not only keep up with change but to anticipate and shape it, establishing new industry benchmarks. In the digital era, businesses require shorter response times and increased awareness of market conditions that can shift more rapidly than in previous decades. From this perspective, numerous organizations have been implementing cutting-edge technologies designed to achieve high performance and competitive advantage (Kitsios & Kamariotou, 2021). Among these advancements, Artificial Intelligence (AI) has taken a central role (Akhtar et al., 2019) and has captured the interest of both researchers and industry professionals. AI is defined as a machine's capacity to learn from experience, adapt to new inputs, and perform human-like tasks (Balog, 2019). Researchers (Balog, 2019; Kitsios & Kamariotou, 2021) suggest that AI could now be the innovation with the greatest potential for disruption. Similarly, according to Lichtenthaler (2020), AI is the fundamental multi-purpose technology in the field, particularly concerning machine learning tools. Artificial Intelligence (AI) is generally described as the ability of machines to execute human-like cognitive functions. These can encompass automating physical processes such as manipulating and moving objects, sensing, perceiving, problem-solving, decision-making, and innovation (NewVantage, 2019).
Artificial Intelligence (AI) is currently considered the most significant and transformative emerging technology for major organizations. Nevertheless, its implementation in large enterprises is still in its early stages, and it remains largely absent from smaller businesses, except for tech startups (NewVantage, 2019). Research indicates that less than half of large organizations have substantial AI initiatives in progress, though this proportion is growing over time (Kitsios & Kamariotou, 2021). For most entities, AI projects are primarily experimental, often conducted as pilots or proofs of concept. Few organizations have implemented AI in production environments—an issue explored further in this study. This experimental approach means many organizations have seen little to no financial return on their AI investments. However, some analysts predict that AI adoption will eventually significantly boost company growth and profitability. Organizations are applying AI for various purposes: enhancing process efficiency (28% as one of the top two priorities), improving existing products and services (25%), developing new offerings (23%), enhancing decision-making (21%), and reducing costs (20%) (Deloitte, 2020). Despite frequent media coverage of workforce reduction, this objective received the lowest number of mentions at 11%. Initially, executives focused on leveraging AI technologies to automate specific workflow processes and repetitive tasks. These processes were characterized as linear, stepwise, sequential, and repeatable. This chapter looks at an overview of the AI revolution in strategic management.
Contributions of the Chapter
This chapter explores the transformative effects of artificial intelligence on strategic leadership and management. It examines AI's influence on organizational functions, data analysis, and executive decision-making. Forward-thinking leaders who embrace AI technologies have the chance to transform their business models and operational frameworks, leveraging more precise, real-time data for decision-making. This research breaks new ground by theoretically investigating AI's function in strategic management within the corporate environment. As a result, it contributes to academic discussions and pushes the boundaries of existing knowledge.
Literature
Artificial Intelligence
Artificial Intelligence (AI) has emerged as a crucial component in global organizational operations with its rapid technological advancements (Benbya et al., 2020; Pietronudo et al., 2022). AI is characterized as 'the ability of a machine to perform cognitive functions that we associate with human minds, such as perceiving, reasoning, learning, interacting with the environment, problem-solving, decision-making, and even demonstrating creativity' (Collins et al., 2021). Through extensive databases, sophisticated learning capabilities, and intelligent algorithms, AI enhances managerial decision-making processes, revolutionizing organizational competencies and methodologies (Borges et al., 2021; Krakowski, Luger, & Raisch, 2023; Raisch & Krakowski, 2021). In recent times, generative AI, particularly large-language models, has captured significant managerial interest, prompting executives and boards to integrate these technologies into their digital strategies (Li et al., 2023; Paschen et al., 2020). According to a recent McKinsey investigation report by Hatami and Segel (2023), the introduction of generative AI has been identified as the most significant business development in 2023 (or the past decade), swiftly becoming a top priority for CEOs across thousands of companies. Furthermore, the implementation of AI presents novel opportunities and challenges in the field of organizational strategic management research (Haefner et al., 2021; Von Krogh, 2018). The graphical representation of the study is presented in Fig. (1).
Fig. (1)) Conceptual framework.AI and Strategic Management
In the current era of technological advancement, Artificial Intelligence (AI) has become ubiquitous in the business world, playing a vital role in various aspects of corporate strategy, including strategic planning, reporting, project management, and organizational alignment. The possibilities are seemingly limitless. For businesses to thrive in today’s competitive and rapidly evolving market, effective strategic planning is essential. This process encompasses goal-setting, market analysis, and informed decision-making. The advent of AI technology has transformed the approach businesses take to strategic planning. AI-powered tools and algorithms provide valuable insights, enhance decision-making processes, and boost overall efficiency.
A primary benefit of incorporating AI into strategic planning is its capacity to handle and examine enormous volumes of data. Conventional planning methods often struggle to cope with the vast amount of available information, potentially leading to information overload and overlooking crucial insights (Balog, 2021). AI algorithms excel in analyzing large datasets, identifying meaningful patterns, and generating actionable recommendations. By harnessing AI, companies can gain a comprehensive understanding of market trends, consumer preferences, and competitive landscapes, enabling more informed and effective strategic decisions.
Another area where businesses can leverage AI for strategic planning is through predictive analytics. This technique employs historical data, machine learning algorithms, and statistical modeling to forecast future outcomes. By analyzing patterns and trends in the data, predictive analytics algorithms can generate accurate predictions about consumer behavior, market dynamics, and potential risks and opportunities. This valuable foresight allows businesses to proactively adjust their strategies, identify emerging trends, and maintain a competitive edge (Judijanto et al., 2023).
AI-driven tools can also improve the efficiency and speed of strategic planning processes. Manual analysis and decision-making can be time-consuming and susceptible to human biases. AI algorithms can automate various tasks, such as data collection, processing, and report generation, significantly reducing the time and effort required for strategic planning. This automation allows businesses to allocate more resources to critical thinking and strategic decision-making rather than getting bogged down by repetitive and mundane tasks.
Furthermore, AI can enhance scenario planning, a crucial aspect of strategic planning that involves evaluating multiple future scenarios and their potential impact on the business. AI algorithms can simulate various scenarios based on different assumptions and variables, enabling businesses to assess the risks and opportunities associated with each scenario. This aids in identifying the most favorable course of action and developing contingency plans to mitigate potential risks. By utilizing AI for scenario planning, businesses can make more accurate and data-driven strategic decisions, reducing uncertainty and maximizing their chances of success (Judijanto et al., 2022).
It is important to note, however, that AI should not replace human involvement in strategic planning but rather complement it. While AI algorithms excel at data analysis and generating insights, human judgment, creativity, and intuition remain crucial for effective strategic decision-making.
AI in Strategic Management Process
Artificial Intelligence (AI) provides substantial benefits throughout the strategic planning process, enhancing decision-making and optimizing results at every stage. The following are the key advantages AI brings to the three main phases of strategic management:
Strategy Development.Information Processing: AI can analyze extensive datasets from diverse sources, including market dynamics, consumer habits, and rival strategies, offering a holistic perspective for strategy development.ITrend Identification: Machine learning algorithms can detect subtle correlations and trends that may escape human notice, yielding more sophisticated strategic insights, such as innovative methods to enhance efficiency and connect with target demographics.Future Forecasting: AI technology can swiftly create and evaluate numerous potential future situations, enabling organizations to prepare for a range of possible outcomes.Unbiased Decision-making: The use of AI in strategy formulation minimizes human prejudice, resulting in more impartial and evidence-based choices.Strategy ExecutionContinuous Performance Tracking: Artificial intelligence platforms can incessantly monitor essential performance metrics and deliver instantaneous updates on the progress of strategy implementation.Smart Resource Management: AI technology is capable of flexibly adjusting resource distribution based on shifting circumstances and performance metrics, enhancing the efficiency of strategy execution.Anticipatory Analysis: Through AI, potential challenges or prospects during implementation can be anticipated, enabling proactive strategy modifications.Computerized Workflow Management: AI has the capacity to streamline routine processes and workflows, allowing human personnel to focus on more intricate, strategic tasks.Strategy EvaluationAI's Multifaceted Evaluation Capabilities: Artificial intelligence can examine and interpret intricate performance datasets to deliver a comprehensive evaluation of strategic efficacy.Causal Relationship Detection: Sophisticated AI algorithms are capable of uncovering connections between strategic initiatives and their results, providing a more profound understanding of successful approaches and their rationale.Comparative Analysis: AI technology enables organizations to measure their performance against industry norms and rival companies, offering valuable context for strategy assessment.Adaptive Improvement: AI systems have the ability to extract lessons from previous strategies and their consequences, leading to ongoing enhancement of the strategic planning process.By incorporating AI into these phases, organizations can strengthen their strategic planning process, resulting in more effective strategies, superior implementation, and enhanced long-term performance.Applications of AI in Strategic Management
Analyzing Data and Recognizing Patterns
AI's ability to process large datasets and identify hidden patterns surpasses human capabilities. This feature allows organizations to conduct in-depth analyses of market dynamics, consumer habits, and rival tactics with exceptional accuracy. AI algorithms can uncover connections and trends that might be overlooked using conventional methods.
Forecasting with AI
The predictive capabilities of AI enable companies to project future scenarios based on past information. This proves crucial in strategic management, where anticipating market shifts, customer preferences, and potential threats can guide leaders in developing proactive plans. Such forecasting aids in allocating resources, developing products, and managing risks effectively.
AI-enhanced Decision-making
Machine Learning-powered decision support systems assist executives in making well-informed choices. These platforms evaluate data, consider potential outcomes, and provide suggestions, thereby enhancing human decision-making processes. This is particularly valuable in strategic management, where complex decisions require a thorough analysis of multiple factors.
Understanding Human Language
Natural Language Processing (NLP) allows AI systems to comprehend and interpret human communication. In strategic management, this facilitates the examination of text-based information from various sources, including customer feedback, social media posts, and industry publications. By extracting key insights from unstructured data, organizations can develop a comprehensive understanding of market sentiments and industry trends.
Streamlining Repetitive Tasks
AI's automation capabilities optimize routine processes, allowing human resources to concentrate on more strategic aspects of management. Time-consuming and repetitive activities, such as data input and report creation, can be automated, enabling professionals to dedicate their time and expertise to more strategic initiatives.
Benefits of AI in Strategy
Synchronizing OKRs with Overarching Strategic Objectives
Artificial Intelligence can assist in harmonizing Objectives and Key Results (OKRs) with company-wide strategies by evaluating the impact of specific objectives on broader goals and recommending modifications for better alignment. This ensures that each team's efforts contribute to the organization's overall strategic aims (Sailus, 2024). The process of aligning OKRs with strategic objectives requires comprehending the complex interplay between various activities and outcomes across the company. AI's capacity to thoroughly examine these relationships and propose actionable alignments is crucial for effective strategy implementation.
Enhancing Data Processing through AI
Artificial Intelligence provides significant advantages for strategic intelligence, particularly in expediting data processing. AI technologies, such as natural language processing and deep learning algorithms, enable swift analysis of extensive datasets that exceed human capabilities. This not only efficiently addresses complex challenges but also provides prompt insights essential for agile decision-making in dynamic market conditions. By automating data processing and analysis phases, AI shortens the time required to transform raw data into actionable insights, enabling organizations to make more informed decisions quickly. This is especially advantageous in time-sensitive situations, such as reacting to market shifts or emerging threats.
