AI and Strategy: How New Tools Can Boost the Evolution of Strategic Decision-Making

Artificial intelligence (AI) is revolutionising strategic decision-making by introducing new tools that enhance efficacy and accuracy of predictions. This chapter examines the historical evolution of strategy, from ancient military tactics to modern business strategies, highlighting how AI’s capabilities align with strategic needs. It explores AI’s role in predictive modeling, scenario analysis, and optimisation, which provide data-driven insights for better decision-making. The chapter also discusses the ethical considerations and potential biases in AI applications, emphasising the importance of responsible AI use. It concludes by advocating for a skills-based approach to AI integration, ensuring that strategic decisions are informed by both advanced tools and human judgment.