𝑺𝒖𝒄𝒄𝒆𝒔𝒔𝒇𝒖𝒍𝒍𝒚 𝑰𝒏𝒕𝒆𝒈𝒓𝒂𝒕𝒊𝒏𝒈 𝑨𝑰 𝒊𝒏𝒕𝒐 𝑩𝒖𝒔𝒊𝒏𝒆𝒔𝒔 𝑺𝒕𝒓𝒂𝒕𝒆𝒈𝒚

While the technological capabilities of AI have significantly advanced, adopting AI-based technology to fully support strategy and contribute to business performance remains complex.

It requires significant transformation - adjusting structures, building capabilities, and amending governance - as AI has a distinct characteristic compared to other digital technologies: its self-learning ability. 

💡 𝐃𝐢𝐝 𝐲𝐨𝐮 𝐤𝐧𝐨𝐰? The failure rate of AI projects is above 70% (e.g., Ångström et al., 2023).

𝐅𝐢𝐯𝐞 𝐄𝐬𝐬𝐞𝐧𝐭𝐢𝐚𝐥 𝐀𝐫𝐞𝐚𝐬 𝐟𝐨𝐫 𝐈𝐧𝐭𝐞𝐠𝐫𝐚𝐭𝐢𝐧𝐠 𝐀𝐈 𝐢𝐧𝐭𝐨 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐲

According to recent research by Technical University Munich scholars Thomas Hutzschenreuter and Tim Lämmermann, five essential sets of questions need to be properly answered in the sequence of the 𝐀𝐈 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐲 𝐖𝐡𝐞𝐞𝐥.

1️⃣ Identifying Playing Fields

 In what value chain areas and/or market offerings should we deploy AI, to which extent?

2️⃣ Creating and Sustaining Business Value

What value does AI add for us to become more competitive?

How do we defend the competitive position it takes us to?

3️⃣ Securing Financial Impact

How to we capture the value created by AI through adding or modifying revenue streams and/or adjusting cost structures?

4️⃣ Ensuring Seamless Implementation

How do we best handle the black box perception of AI?

Depending on the criticality of an AI failure and stakeholder concern this may be (a) ‘only evaluating outputs’ (b) ‘expert validation of key decision variables’ (c) ‘nonexpert understandability’.

Which technological assets do we need and how should we best acquire them?

5️⃣ Managing Dynamics

What is the right time horizon and what enables us to handle technological change in AI?

𝐄𝐧𝐬𝐮𝐫𝐢𝐧𝐠 𝐨𝐯𝐞𝐫𝐚𝐥𝐥 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐅𝐢𝐭

Throughout, when making choices about AI, these must be logically consistent in themselves, contributing to your strategy and reflect the business context.

💬 𝐉𝐨𝐢𝐧 𝐭𝐡𝐞 𝐂𝐨𝐧𝐯𝐞𝐫𝐬𝐚𝐭𝐢𝐨𝐧

What’s critical in your view to align your AI initiatives with your strategy?

How do you identify the right opportunities to leverage AI in your business?

How do you improve the success rates of your AI project?

Source: Hutzschenreuter, T., & Lämmermann, T. (2025). What Is Your AI Strategy? Systematically Integrating Self-Learning Technologies into Your Business Strategy. Academy of Management Perspectives

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