This article explores the potential and limitations of generative AI (gen AI) in assisting small businesses with strategic planning. Through disguised case studies, the authors demonstrate how gen AI can identify challenges and opportunities that human managers might overlook, while acknowledging its shortcomings in envisioning future scenarios due to its reliance on historical data.
For business leaders, especially at relatively small companies, the idea of applying gen AI to strategic planning is mouthwatering. This article explores the potential and limits of AI in helping such companies chart their strategies.
Through the lens of two disguised case studies the authors show how gen AI can help companies identify some challenges and opportunities that managers missed, overcoming the human biases, but by the same token missed some possibilities rooted in the company’s specific capabilities. And although gen AI was less able to imagine possible future scenarios because its forecasts were entirely rooted in historical data, clever promoting enabled it to surface issues and questions that human managers ignored. The authors conclude that knowing gen AI’s weaknesses allows managers to take advantage of its strengths. The key is to view gen AI as a tool that augments, rather than replaces, your strategic thinking and decision-making.The business community is all atwitter at the prospect that gen AI — through the likes of ChatGPT, you.com, and Claude.ai — will revolutionize business decision-making. Sam Altman, CEO of OpenAI, even declaredAccelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Strategy Planning and Execution. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.. He is a recognized expert in strategy and performance measurement who helps managers, executives, and boards create successful organizations in the private, public, and not-for-profit sectors. He has been a professor of management in universities in the U.S. and Canada.is a Professor and Chair in Digital Economy at QUT Business School in Brisbane, Australia. He was a Founding Research Manager of SAP’s Machine Learning lab in Singapore, a Global Research Program Lead at SAP Research, and a Research Fellow at Microsoft Research Asia. His new book is “is the Head of Artificial Intelligence Australia and New Zealand at SAP, based in Sydney, Australia. She founded the SAP AI Council in Australia to focus on the responsible adoption, operation, and scaling of AI and lectures part-time at various business schools. You can connect with or follow her onAccelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Strategy Planning and Execution. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
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Gen AI for Strategic Planning: A Powerful Tool, But Not a ReplacementThis article explores the potential and limitations of generative AI (gen AI) in helping small businesses with strategic planning. Through case studies, it shows how gen AI can identify challenges and opportunities that humans might miss, but also acknowledges its weaknesses in imagining future scenarios based solely on historical data. The authors conclude that gen AI should be viewed as a tool to augment, rather than replace, human strategic thinking.
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Gen AI: A Tool for Augmenting Strategic ThinkingThis article explores the potential and limitations of generative AI (gen AI) in assisting small businesses with strategic planning. Through case studies, it demonstrates how gen AI can uncover challenges and opportunities missed by human managers while acknowledging its limitations in predicting future scenarios due to its reliance on historical data.
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Gen AI: A Powerful Tool for Strategic Planning, But Not a Replacement for Human InsightThis article explores the potential and limitations of generative AI (gen AI) in assisting small businesses with strategic planning. Through case studies, it demonstrates how gen AI can identify challenges and opportunities that humans might miss, overcoming biases but also potentially overlooking possibilities tied to specific company capabilities. While gen AI struggles with imagining future scenarios due to its reliance on historical data, clever prompting can surface issues and questions overlooked by human managers.
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