How Companies are Applying AI to the Business Strategy Formulation

M S S El Namaki


Computing equipment capable of what one may term partial and quasi-intelligent behaviour, commonly referred to as Artificial Intelligence (AI), is assuming a key role in business. The probability is high that this Artificial Intelligence (AI) will lead to a fundamental change in the process of business strategy formulation as much as the very contents of this strategic behaviour. Product and market strategies and the resultant competitive behaviour will, more likely than not, be the outcome of those artificial intelligence processes and reiterations. A start is made and one can observe substantial progress in this direction. Who has done it and is there a conceptual framework behind this strategic behaviour? This will be the focus of this article The article starts with a brief definition of artificial intelligence and a basic framework of the concept. Seven case studies follow supporting the hypothesis that AI is penetrating the business strategy arena and leading to a fundamental change in the concept as much as the application. Those cases were drawn from different industries, and countries. A conceptual framework is accordingly derived and positioning of those case companies within this conceptual framework is done. The article is based on contemporary frameworks of AI and the cases are drawn from contemporary analysis of strategic behaviour. The conceptual model could provide an instrument for business AI application.


Artificial Intelligence, AI, Business Strategy, Policy, Technology

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