Can AI Really Be Used for Strategy and Planning? The Case for an AI-Driven Competitive Edge

By Asbj?rn Levring, Founder of INSTRAT360

Artificial intelligence (AI) is transforming industries, but can it truly be used for strategy and planning - arguably the most human-centric aspects of business? Many skeptics argue that AI, while great for automation and data analysis, lacks the creativity, intuition, and long-term vision that strategy demands. But that assumption is rapidly becoming outdated.

In reality, AI is not replacing strategy - it’s enhancing it. By combining AI’s data-processing power with human ingenuity, organizations can craft faster, smarter, and more adaptive strategies than ever before. AI’s ability to analyze vast datasets, simulate scenarios, and provide predictive insights is shifting how companies plan for the future.

So, can AI really be used for strategy and planning? Absolutely. And here’s why.

1. AI Uncovers Patterns Humans Can’t See

One of the fundamental aspects of strategic planning is analyzing trends—understanding markets, consumer behavior, competitor moves, and economic shifts. Traditionally, this relied on historical data, expert opinions, and intuition. But today’s business landscape moves too fast for gut feelings alone.

AI can process trillions of data points in seconds, detecting trends that would take humans months (if not years) to identify. More importantly, AI eliminates cognitive bias, ensuring that strategic decisions are based on actual patterns rather than assumptions.

For example:

• AI-driven market intelligence tools can analyze news, financial reports, patents, and social media sentiment in real-time, identifying emerging competitors or shifting customer preferences before they fully materialize.
• AI-based demand forecasting helps businesses adjust pricing, supply chains, and product development by predicting future consumer behavior with remarkable accuracy.

Case in point: McKinsey reports that companies using AI for forecasting and decision-making increase profitability by up to 20% compared to those that don’t.

?? Takeaway: AI turns fragmented, complex market signals into actionable strategic insights.

2. AI Simulates Future Scenarios for Better Decision-Making

A cornerstone of strategic planning is evaluating "what if" scenarios. Businesses need to anticipate economic downturns, supply chain disruptions, geopolitical risks, and competitive shifts—yet traditional forecasting models are often static and unreliable.

AI-powered scenario planning changes the game. Using reinforcement learning and probabilistic modeling, AI can simulate hundreds or even thousands of potential future scenarios, helping executives prepare for multiple outcomes.

For example:

• Oil & Gas: Energy firms use AI-driven simulations to model how supply chain disruptions or regulatory changes will impact production costs and profitability.
• Finance: Hedge funds use AI to run millions of investment simulations, testing different market conditions before deciding where to allocate capital.
• Retail: AI-driven simulations help brands prepare for unexpected demand spikes (e.g., Black Friday, viral social trends) to avoid stockouts or overproduction.

?? Takeaway: AI provides businesses with a strategic edge by testing multiple futures before they happen.

3. AI Enables Real-Time, Adaptive Strategy Execution

Traditional strategy models are static - you create a five-year plan, then execute it. But today’s competitive landscape doesn’t allow for rigid plans. AI introduces dynamic, real-time strategic adaptation, allowing businesses to adjust their approach as new data emerges.

• AI-driven business intelligence dashboards track market conditions in real-time and suggest adjustments based on leading indicators.
• AI-enhanced OKR (Objectives & Key Results) platforms analyze company-wide performance and recommend pivots before teams fall behind targets.
• AI-powered risk management systems detect potential threats (financial risks, cyberattacks, operational bottlenecks) and recommend immediate action.

Case in point: Tesla continuously adjusts pricing and production based on real-time AI-powered demand analysis. Unlike traditional automakers that lock in pricing for months, Tesla uses AI to dynamically adjust prices to maximize revenue and respond to supply fluctuations.

?? Takeaway: AI transforms strategic planning from a one-time event into a continuous, adaptive process.

4. AI Helps Leaders Make More Informed Decisions

Some argue that AI lacks human judgment, but in reality, AI augments human decision-making. AI is not here to replace executives, but to provide data-backed recommendations that improve strategic choices.

Consider AI as a high-performance co-pilot for decision-makers:

• AI analyzes millions of data points in seconds, surfacing key insights that would take human teams weeks to compile.
• AI summarizes complex reports into digestible takeaways, allowing leaders to focus on high-level decision-making.
• AI-driven natural language processing (NLP) helps executives track industry news, regulatory changes, and competitor shifts automatically.

For example, AI-powered strategy tools like Instrat360 enable organizations to consolidate insights, optimize goal setting, and ensure alignment across teams.

?? Takeaway: AI ensures that business leaders make faster, smarter, and more informed strategic decisions.

5. AI Democratizes Strategy for Smaller Players

Historically, access to high-level strategic insights was reserved for corporations with massive research budgets. AI levels the playing field, allowing startups and mid-sized businesses to access enterprise-grade strategic capabilities without hiring an army of consultants.

• No-code AI platforms empower non-technical business leaders to conduct AI-driven strategy analysis.
• AI-driven competitive intelligence tools allow smaller firms to monitor industry trends without expensive consulting reports.
• AI-based financial modeling helps startups simulate different funding and scaling strategies, maximizing growth potential.

Case in point: Shopify uses AI-powered business analytics to help small e-commerce brands identify high-performing products, optimize ad spend, and forecast demand—giving them access to the same insights as major retailers.

?? Takeaway: AI enables smaller businesses to compete on strategy with industry giants.

The Human-AI Partnership: Why AI Won’t Replace Strategy, But Will Supercharge It

The skeptics aren’t entirely wrong - AI can’t replace human leadership, creativity, or vision. AI doesn’t understand company culture, customer emotions, or the why behind strategic moves. But what AI does exceptionally well is augment human intelligence by removing guesswork and providing precision in decision-making.

Think of AI as the ultimate strategic assistant: ? It processes more data, faster than any human team ever could. ? It runs complex simulations to test strategic options before committing. ? It adapts in real-time to external conditions, making strategy execution more agile.

The most successful organizations of the next decade won’t be the ones that replace people with AI - but the ones that empower people with AI.

Final Thoughts: The Future of AI in Strategy and Planning

The question "Can AI really be used for strategy?" isn’t theoretical anymore - it’s already happening. Companies leveraging AI in strategy and planning are making smarter, faster, and more adaptive decisions.

At INSTRAT360, I’ve seen firsthand how AI-powered insights help organizations align their strategic goals, optimize execution, and outmaneuver the competition. While AI won’t replace strategic thinkers, it will dramatically enhance their capabilities - helping them move from intuition-based decisions to data-backed, precision-driven strategy.

If the competition is already using AI for strategy, the real question isn’t "Can AI be used for strategy?" but rather "Can you afford not to?"

About the Author

Asbj?rn Levring is the Founder of INSTRAT360, an AI-powered strategy execution platform. With a background in competitive athletics and rowing, Asbj?rn brings a performance-driven mindset to strategy, helping organizations leverage AI to make smarter, faster, and more adaptive decisions.