INTRODUCTION
Background of Business Strategy
Formulation
Think of making a business plan like playing a game of chess. Every step
a company takes is planned to stay ahead of competitors and avoid
problems, just like a chess player thinks about their next move. In the
past, companies would use their gut feelings, past experiences, and
market research to decide what to do next, much like a ship’s captain
would use stars and maps to find their way. This planning is a set of
instructions to help businesses grab opportunities and handle tough
times (Brynjolfsson & McAfee, 2014) [5].
The Emergence and Significance of AI
in the Business
Realm
Now, there’s a new player in the game: Artificial Intelligence (AI). AI
used to be something we only read about in science fiction, but it’s now
a big part of the business world, changing the old ways of making
strategies. As explained by Brynjolfsson and McAfee in their book ”The
Second Machine Age,” machines are now not just doing tasks for us;
they’re also thinking, learning, and making predictions. AI helps
businesses understand patterns in huge amounts of data and predict
future market trends really well (Agrawal, Gans, & Goldfarb, 2022)
[1]; (Bughin et al., 2017) [6]. As Davenport and Ronanki noted
in 2018, companies are using AI not just in theory but in real-life
situations to solve problems and change how they plan for the future
(Davenport & Ronanki, 2018) [11].
Objective and Scope of the
Research
So why are we interested in this? We’re like explorers, wanting to
figure out how AI is changing the usual ways of doing business. This
research is about getting a full picture of how AI is changing the game
in business planning. We’re looking at important studies, like the book
”Prediction Machines” by Agrawal, Gans, and Goldfarb, to understand AI’s
role in modern business (Agrawal, Gans, & Goldfarb, 2022) [1].
We’ll look at how some companies are using AI to get ahead and also
consider the challenges and ethical issues that come with this new
technology (O’Neil, 2017) [24]; (West, 2018) [23]. This research
is an exciting journey into the world of business strategy enhanced by
AI.