Ann Arbor Times

The potential of artificial intelligence (AI) to influence strategic decision-making is being explored in a new study by Felipe Csaszar, a professor of strategy at the University of Michigan’s Ross School of Business. The research highlights AI's ability to process vast amounts of information swiftly, generate and evaluate numerous strategic alternatives, and enhance existing decision-making frameworks.

Csaszar explains his motivation: "My interest in AI and strategy dates back to my undergraduate years in computer science and my time as a startup founder. When ChatGPT was released in late 2022, I saw an opportunity to test a controversial idea I had presented at a strategy conference—AI might be capable of making strategic decisions."

Focusing on the entrepreneurship and investment field, Csaszar notes the setting provides a way to measure two key aspects: strategy generation and selection. This allows testing AI’s ability against experienced venture capitalists' judgments.

Regarding integration barriers, Csaszar compares AI challenges to past technological revolutions like the internet. He states that full integration could take more than a decade due to necessary advancements in infrastructure, business processes, workforce training, and regulatory frameworks.

Ethical considerations are also emphasized. "The primary consideration should be ensuring AI doesn’t harm people," says Csaszar. He advocates for keeping humans involved until AI systems prove safer than human decision-makers. Additionally, he sees potential for democratizing access to services through AI.

In terms of scalability and competitive advantage, Csaszar believes companies that adapt quickly will benefit most during rapid technological change. Once technology stabilizes, those with complementary assets will hold an advantage.