Generative AI isn’t the strategic oracle many say it is. Like any other form of AI, it is a mirror that reflects patterns, trends, and decisions of the past. It cannot reliably break new ground or generate truly novel solutions given that it relies on pre-existing data and learned probabilities. But there are three ways leaders can leverage generative AI to support forward-looking decision-making that steer organizations toward growth and innovation: as a sounding board, to explore scenarios, and as an ideation tool. To effectively employ any AI in strategic decision-making, it is vitally important for managers and leaders to understand the limitations that are inherent in the way it generates output.
