AI in the C-Suite: Using AI to Shape Business Strategy

Jeff Schumacher, CEO of artificial intelligence (AI) software company NAX Group, said World Economic Forum: “To truly realize the potential of AI, enterprises must not only embrace it, but also put it to use.”

Schumacher and others believe AI can help companies make data-driven decisions by automating key parts of the strategic planning process.

“This process involves connecting AI models to observed actions, using data that is subsequently fed back into the system to complete the feedback loop,” Schumacher said. “A critical element is automating these steps, enabling rapid, self-learning iterations that drive continuous improvement and innovation.”

Much of the hype around AI is focused on large language models (LLMs). However, research shows that more and more executives like Schumacher are recognizing the connection between AI and business innovation.

June 2023 IBM research found that 43% of executives use generative AI to make strategic decisions by accessing real-time data and unique insights.

“Decision making based on intuition, common sense and knowledge is very good and should never be lost. But the more analytical support we have, the better,” Gonzalo Gortazar, CEO of CaixaBank, told IBM.

AI has the potential to transform industries, changing the way students learn, employees work and shop. And perhaps most importantly, it can influence leadership.

AI-powered decision making is transforming the C-suite

Bret Greenstein, PwC’s Data and AI Leader, is an expert in enterprise AI and works with many leaders on operational AI integration. He believes leaders are using generative artificial intelligence (genAI) because of its disruptive potential, not despite it.

“What we are seeing is a continued desire from clients in every sector to shift their investments in geniusAI as a means of transformation—from cost savings to increased revenue, increased speed and new value streams,” he said.

Greenstein added that most C-suite executives use AI without fully understanding its potential, and few recognize its value in decision-making.

“First, using genAI helps senior leaders gain faster access to public and private data to synthesize answers,” Greenstein said. “Second, decision makers are increasingly relying on genAI to … ask questions about their financial and operational data without relying on traditional dashboards and reports,” Greenstein said.

Transforming how leaders interact with customers

Artificial intelligence provides executives with real-time data and insights, allowing them to better understand customers and launch new businesses with confidence.

Kirill Lazarev, founder and CEO of the Lazarev design agency, whose clients include Boeing, HP, Meta and many Fortune 100 companies, shares his experience.

“A client once shared how predictive analytics allowed them to proactively identify trends in customer preferences. For them, it wasn’t just data; it was a window into their customers’ future desires, allowing them to tailor offerings like never before.

“It was a light bulb moment for me when I saw AI… as a bridge to a deeper understanding of customers,” he said.

Lazarev now encourages clients to use AI for analytics and decision-making and believes AI can bridge the gap between companies and clients, improving market understanding and increasing profits.

Practical guidance ensures AI success

Many executives are looking to implement AI, but the most successful ones take a hands-on approach, involving senior executives in the planning, implementation and iteration process, like Simon Bacher, CEO of edtech startup Ling App.

“I used AI as a strategic tool,” said Bacher, whose executive team uses AI to understand user needs, identify new business opportunities and create a personalized language learning recommendation system that generates personalized learning paths for users.

“I am deeply involved in understanding the opportunities that AI provides, but also aware of its limitations. My involvement in refining and refining our AI models often helps make more accurate predictions and thus improves our overall business strategies,” Bacher said.

From understanding artificial intelligence to using artificial intelligence wisely

While many executives are just beginning to understand the potential of AI in business strategy, early adopters are already using it for long-term planning.

“The leadership is already changing,” Greenstein said. “They are investing in new skills to move from AI knowledge to AI expertise. They are creating new positions in the C-suite to help manage and transform with AI—roles such as chief AI officer or expanding roles of heads of digital or technology offerings—to bring more AI thinking to the leadership team.”

Lazarev agrees: “It’s one thing to have the technology, but another to weave it into the fabric of your business strategy. This requires a vision shared by the entire leadership team and an openness to iteratively refining your approach based on feedback from the field.”

Find out about Nutanix AI Platform, GPT-in-a-Boxand the latest trends in the IT industry in Enterprise Cloud Index 2024 report.

Marcus Taylor has worked as an IT executive and writer since 2016, specializing in SaaS, healthcare IT, cybersecurity, and quantum computing. He can be contacted through his website: mtwriting.com.