How do you compete when a tough competitor gets an AI upgrade?

"Go ahead, dismiss me, mock me, knock me down, exclude me, take what you think I have left, and when you turn that corner, there I am again because you underestimate my resolve." George Minakakis

This week in The Business Brief: A competitor just got an upgrade - The Great Christmas Retail Hangover. - What does AI Agentic mean? - Canada's search for leadership.

You wake up one morning and discover that your toughest competitor just got an AI upgrade

During the video recording for my new book, Predictive Leadership, I was asked to comment on the biggest shock a leader may face in 2025.? The answer was, "You wake up one morning and discover that your toughest competitor has a sophisticated AI infrastructure in place. So, how do you compete when a tough competitor gets an AI upgrade?

How do you compete in this environment when AI has supersized your run-of-the-mill disruptive innovation, and what do we call it?? Let's call it the? "Intelligent Revolution."

I would define it in this manner.

Intelligent: Reflects AI's defining potential —the ability to learn, adapt, and act with the assembly of human and artificial intelligence. This signals the shift from mere technological advancement (e.g., e-commerce) to systems or thinking machines that will allow us to optimize our organizational performance.

Revolution: Captures the transformative power we will experience with AI's impact across industries, not dissimilar from the previous industrial and digital revolutions.

All of this implies how business and competition will evolve by their very nature with the need to earn a sustainable market position.

Still, the question needs to be answered: how do you compete when a tough competitor gets an AI upgrade? Walmart faced a similar challenge with Amazon, and when everyone thought they were next on the extinction list, this company challenged the competition and themselves. Now, it is a formidable competitor in e-commerce, digital, and AI. Needless to say, they continue to adapt and grow as an organization.

All of this is about having the right mindset within the organization. In Chapter 24, I wrote about AI-Commerce. It is about consumers and businesses and how they have to migrate into this new world of AI. Six attributes are highlighted, and the need for these abilities to be in place and constantly measuring yourself against them.

1. Predict Intelligently - The insight to identify opportunities
2. Compete Effectively - Continous evolution, such as brand positioning
3. Respond Creatively - Personalized and immediate
4. Innovate Forward - Don't settle for it's good enough
5. Deliver Faster - Insights and speed
6. Serve Better - Apply what you learn about your customers

Each of these builds a foundation toward the right mindset within the organization on how you compete when your toughest competitor gets an AI upgrade. You build one that's better.

This is all about an Intelligent Revolution, a phrase I came up with after the book was published. To prepare for competitors and their AI upgrades, assess yourself against these six attributes. How well are you prepared for the intelligent revolution and stave off your competitor's AI upgrade?

The Great Retail Christmas Hangover

I didn't see many bags on Boxing Day, but I did the day after, and most of them were returns. I was in a lineup with about ten other people at Sport Chek . I was the only one that was buying; it was a new pair ASICS . It was time to retire the other pair; too many miles were on them.

So, what are retailers looking at in 2025? It may be a slow start to the new year. There are a number of global issues on consumers' minds that are being driven by uncertainty. Canadians are facing mortgage renewals at higher rates. That will have an impact on discretionary spending.

In the US, the National Retail Federation says that spending was on track for a record. However, reports show that credit card debt is climbing and perhaps untenable for about a third of consumers. It is likely a similar pattern in Canada, and that kind of spending will not bode well for the first quarter of 2025. If any level of consumer doubt is pending, it's about potential tariffs where both the US and Canada will face higher prices and perhaps even higher interest rates. This makes no economic sense in any alternate universe. It can derail good economies very quickly. You may want to watch this video because not everyone understands how tariffs will impact their business.

However, the technological curveball is also coming; everyone is selling AI to all business sectors, not just retailers. Unfortunately, the truth is that the biggest and strongest retailers are in a better AI position. Everyone else is chasing the future again; the fallout this time will be far harder to deal with. There is a significant gap between what sophisticated retailers do with AI versus all others. For example, merely using chatbots, GPT for idea generation, or algorithms won't be enough to compete against an organization with sophisticated AI infrastructures and the data to back it up. Data is a kingmaker in retailing, and I am not convinced that more than 10% of retailers are at that level.

Success in 2025 will be all about getting to know your customers better and serving them faster. They are focused on greater convenience and saving money. Get that magic right on, and you'll be fine.

Predictive Leadership: What does the term 'agentic' mean, and how does it apply to AI?

Agentic refers to the characteristics where an individual has the ability, autonomy, and agency to take action in their environment. Predominantly, the term is used in sociology, psychology, and leadership contexts.

In the context of AI, the term refers to the capability of an AI system to act autonomously, make decisions, and act on situations to achieve goals. In other words, it is a system that can operate without human intervention. Some examples are autonomous agents, Generative AI models, and AI Assistants.

We are already seeing agentic models at work in industries.

Retail and E-Commerce: chatbots, dynamic pricing, inventory management, customer experience, real-time management.

Healthcare: AI diagnostics, surgical assistance, treatment planning, administrative efficiency.

Agriculture: Agentic AI can enhance precision farming with autonomous tractors and drones, yield predictions, pest and weed control, and livestock monitoring.

The speed of these applications and their capabilities are accelerating, and a plethora of startups are developing ways to augment the performance of AI applications. The one lesson with technology and its terms is that they evolve. Learn the basics and prepare for the future.

Personal Log: Canada's Search for Real Leadership

Let's start with this quote: “It is a curious thing, Harry, but perhaps those who are best suited to power are those who have never sought it. Those who, like you, have leadership thrust upon them, and take up the mantle because they must, and find to their own surprise that they wear it well.”― J.K. Rowling, Harry Potter and the Deathly Hallows

Most political figures believe they were destined to lead. No. Voters put them in power and remove them.

I am amazed at how childlike our politicians, and I mean all of them, can be. More interested in power than collectively finding solutions. The official opposition has done a masterful job of discrediting the Liberal and NDP parties, at times going so far as to blame them for bad weather—a claim that has genuinely been made. While this approach might be effective for rallying certain voter bases, it alienates other voters with different views who are tired of the accompanying hate, distrust, and misinformation. This divisive atmosphere has spread like a virus, infecting professional platforms like LinkedIn. The rise of unsound economic theories and even suggestions of Canada becoming the 51st state reflect the depth of this polarization.

PR and Media have fed the frenzy of hate and misinformation. We keep hearing that Canada is broken. No wonder Donald Trump wants to save us. I don't believe the Conservative opposition wished for this to happen. But the dam is broken, and the onslaught continues. The power of media remains sound. Suppose you spent $5 Million to convince the public that wearing anything purple-colored on Tuesdays can bring you luck. In a short period, we will notice, on the commuter train, at the office, at school, or social events, that people will be wearing purple on Tuesdays. You might arrange your performance review on Tuesdays wearing purple socks. After a frenzy of validations, eventually, everyone will believe in Purple Tuesday. Such is political media. Therefore, I assure you that Canada is not Broken.

As we approach an election in 2025, a Conservative victory is likely. However, they may face challenges beyond their campaign promises. Benefiting short-term from declining inflation and interest rates, managing the trade deficit, addressing foreign interference, balancing tax cuts, and eliminating program funding will test their governance. Canada's national debt remains one of the lowest globally, but trade policies, including potential tariffs, could strain finances further. May the force be with all of us!

Predictive Leadership - How Humans and AI Will Transform Organizations and Competition is available on Amazon and participating booksellers.

We have three new presentations inspired by this book for 2025. If you are interested in one of them for your event, please contact me here:?Contact.

Three New Presentations

The Next Customer Revolution

Unified Intelligence

Intelligent Revolution

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