Why Business Students and Professionals Should Pay Attention to AI in Business Strategy

Dell D.C. Carvalho
May 3
2 min read

In 2023, a bank started using an AI system to speed up loan approvals. Within weeks, approval rates changed in different areas. Managers could not explain why. An internal check showed that the AI was favoring loan applications from wealthier neighborhoods. The strategy of the bank changed without anyone knowing.

This was not an accident. It was a sign of how AI is already shaping business decisions without clear control.

People in business clothes stand around a whiteboard with the words "AI Strategy" and arrows pointing to major business tasks.

AI Is Already a Part of Business Strategy

AI helps companies choose who to hire, what to sell, and how much to charge. These are not small tasks. They are key parts of business planning.

83 percent of HR teams now use AI in hiring decisions¹
AI tools increase marketing results by more than 30 percent in many cases²
AI cuts supply chain costs by about 15 percent in some industries³

This means AI is not just a background tool. It is helping make choices that affect profit, people, and power.

Business Schools Are Behind the Curve

Students still learn classic models like SWOT or Porter’s Five Forces. These models are useful, but they were made for a world where people made the big choices. That world is changing.

AI follows data. It does not think like a person. It does not care about fairness or long-term results unless we build that in. When managers do not understand how AI works, they risk missing key trends or making poor choices.

The question is not if AI should be part of strategy. It already is. The question is whether people in charge understand what it is doing.

Know What Questions to Ask

You do not need to build AI tools. You do need to know what they are doing. Ask simple questions. What data trained this model? What patterns is it looking for? What happens when it gets something wrong?

Business strategy now includes knowing how algorithms work. If you ignore that, your company or career could suffer.

What is your industry doing to keep up?

#AI #Business #Strategy #Leadership #MBA #MSM #FutureOfWork