Traditional vs. AI-Infused Strategic Paradigms: A
Comparative Analysis
In the past, business strategy was mostly about experience and
intuition. Picture boardroom meetings where seasoned professionals made
decisions based on gut feelings, educated guesses, and lots of
historical data. This method worked well for its time, with businesses
thriving and economies growing. However, as Brynjolfsson & McAfee
(2014) [5] describe, we’re now moving into an era where AI is
changing how decisions are made.
Today’s AI-driven strategy is not just about helping human
decision-makers. It brings a new way to look at and analyze strategy,
focusing on real-time data and predicting what might happen in the
future. This doesn’t just lead to faster decisions but to ones that are
more informed, accurate, and proactive. Agrawal, Gans, & Goldfarb
(2022) [1] point out that AI goes beyond traditional analysis,
allowing businesses to not just react to changes but also predict and
prepare for future shifts.
To put it simply, think of it like being a sailor. In the old way, you’d
set sail based on the previous day’s weather. But with AI, it’s like
having a magic compass that tells you about upcoming storms, wind
directions, and even hidden treasures, all in real time.
TABLE 2: THIS TABLE DEPICTS THE CLEAR DISTINCTIONS BETWEEN THE
TRADITIONAL AND THE AI-DRIVEN METHODOLOGIES IN BUSINESS STRATEGY
FORMULATION