Artificial Intelligence and Strategic Thinking

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Nora Ghaoui examines the limitations of artificial intelligence as it pertains to building a business strategy.

If company strategies risk sounding the same when written by people, what happens when they get written by AI? In this post I examine an AI-generated strategy statement for what it says about the abilities of AI and creating strategies. Three years ago, I asked if large companies all had the same strategy. Perhaps their strategies all sounded the same because managers picked up the same ideas from MBAs and consultants, or because they hired the same copywriters. Last month, a new source of non-differentiating strategy appeared – strategy written by AI.

GPT-3

The AI in question is GPT-3 from OpenAI, which has been getting a lot of attention lately. Here’s a quick introduction to GPT-3: it is a language prediction model that autocompletes text from the input that you give it, like you see when you use Google search.  It’s able to complete many different kinds of text, giving it a wider range of application than other models.

Its power comes from its sheer size. It has been trained on a huge amount of text from the internet, and it has 175 billion parameters in which it stores the patterns in that text. Its response to an input is the text that is statistically most likely to come after it. So the more examples it has, the better it can match the input.

 

Key points covered include:

  • Example of strategy written by AI
  • How AI and predictive analytics work
  • Critical thinking

 

Read the full article, Can AI Write a Strategy?, on the Veridia website.