AI overwhelm? Start here

Use AI to support your business strategy

In the old days, every company thought it needed an online presence. Everyone else was doing it, so you put up a website and published an “online strategy" in the annual report. Without really understanding why. 

Don't make the same mistake with AI. 

AI is going to disrupt every part of our business life and probably our personal life, too. It's just the way it is. 

With so much AI emerging, it's hard to know where to focus but getting stuck through indecision is never a good idea and hope isn't a strategy. So where to start?

The first step isn't picking a tool—it's defining what you're trying to achieve. 

Every business has a strategy which, in some way or another, aims to improve competitive advantage. So before looking at AI, first ask yourself: 

How are we competing? 

Often that will be several fronts, but some will inevitably dominate. Start with those. Are you leaning into:

• Cost leadership—offering the lowest prices?

• Differentiation—unique products or services? Insight driven?

• Value-added services—stuff customers are willing to pay more for?

• Brand leadership— trust and recognition? Social status?

• Customer experience—convenience or better service?

• Once you know your competitive position, AI can sharpen it. 

The problem comes when you try to integrate AI all over the place or use it as a tool that doesn't support your strategy. 

Doing that has backfired spectacularly. Notably:

Major publishers like Sports Illustrated and CNET were criticised for using AI to generate articles under fake bylines. Their goal? Cut costs and scale content—but at the expense of credibility.

Premium air carriers cutting costs by replacing customer service reps with AI chatbots. Reducing costs but frustrating customers. Certainly me.

Retail giants using AI dynamically adjusted price strategies- increasing profit but damaging consumer trust in being the lowest price provider.

Companies using AI automated hiring recruitment systems. Yes it reduces cost and speeds hiring, but raises questions about bias and EVP.

AI used correctly is brilliant

AI can legitimately reduce costs, make the customer experience better, reduce uncertainty in decision-making, and even create new competitive edges that didn't exist before. But that's only relevant IF that's what you were trying to do in the first place. And rarely all at the same time.

So don't chase AI for AI's sake. Start with the business goal then find the AI solution that accelerates it.