AI in the C-suite: Using AI to shape business strategy

Jeff Schumacher, CEO of artificial intelligence (AI) software company NAX Group, told the World Economic Forum: “To truly realize the promise of AI, businesses must not only adopt it, but also operationalize it.”

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 with observable actions, leveraging data subsequently fed back into the system to complete the feedback loop,” Schumacher said. “The critical element lies in automating these steps, enabling rapid, self-learning iterations that propel continued improvement and innovation.”

Most AI hype has focused on large language models (LLMs). However, research demonstrates that more executives, like Schumacher, recognize the connection between AI and business innovation.

A June 2023 study by IBM found that 43% of executives use generative AI to inform strategic decisions, 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 analytic support we have, the better,” Gonzalo Gortázar CEO of CaixaBank, told IBM.

AI can transform industries, reshaping how students learn, employees work, and consumers buy. And maybe most importantly, it can influence leadership.

AI-driven decision-making transforming the c-suite

Bret Greenstein, PwC’s data and AI leader, is an expert on enterprise AI working with numerous executives to integrate AI operationally. He believes leaders are embracing generative AI (genAI) for its disruptive potential, not despite it.

“What we see is a consistent focus among clients in every sector to shift their investments into genAI as an enabler of transformation – from cost savings to increased revenue, improved speed, and new value streams,” he said.

Greenstein added most C-level executives have embraced AI without fully grasping its potential and few recognize its value in decision-making.

“First, the use of genAI is helping senior executives get faster access to public and private data to get answers summarized,” Greenstein said. “Second, decision-makers increasingly rely on genAI to … ask questions about their financial and operational data without relying on traditional dashboards and reports,” said Greenstein.”

Transforming how leaders engage with customers

AI equips executives with real-time data and insights, enabling them to understand customers better and confidently launch new business lines.

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

“A client once shared how predictive analytics allowed them to spot a rising trend in customer preferences early on. This wasn’t just data for them; it was a window into their customers’ future desires, enabling them to tailor offerings like never before.

“It was a lightbulb moment for me, seeing AI … as a bridge to deeper customer insights,” he said.

Lazarev now urges clients to use AI for analytics and decision-making and believes AI can bridge the gap between companies and customers, creating better market understanding and boosting profits.

Hands-on leadership creates AI success

Many executives are eager to implement AI, but the most successful take a hands-on approach, involving the C-suite throughout planning, implementation, and iteration—like Simon Bacher, CEO of education technology startup Ling App.

“I have utilized 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 engine that generates individual learning paths for users.

“I’m deeply involved in understanding the possibilities that AI presents while also being cognizant of its limitations. My involvement in fine-tuning and tweaking our AI models frequently helps yield more precise predictions and thus improves our overall business strategies,” Bacher said.

From AI-aware to AI-savvy

While many executives are just beginning to understand AI’s potential in business strategy, early adopters already use it to inform long-term planning.

“The C-suite is already changing,” Greenstein said. “They are investing in new skills to move from being AI-aware to AI-savvy. They are creating new C-suite roles to help govern and transform with AI — roles like the chief AI officer or expanding the roles of chief digital or technology offerings — to bring more AI thinking into the leadership team.”

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

Learn about Nutanix’s AI platform, GPT-in-a-Box, and the latest IT industry trends in the 2024 Enterprise Cloud Index report.

Marcus Taylor has worked as an executive and thought leadership writer for the information technology industry since 2016, specializing in SaaS, healthcare IT, cybersecurity, and quantum computing. He is reachable through his website: mtwriting.com.