AI is riding the hype cycle at full speed. Everywhere you turn, companies, executives, and consultants are asking, “What’s your AI strategy?” It sounds almost as if AI were an end in itself—a standalone function operating in isolation, disconnected from core business priorities. The result? A deep dive into AI rabbit holes, where tactical improvements deliver small wins but never move the needle in a meaningful way.

This is why “What’s your AI strategy?” is the wrong question.

Instead of chasing AI for AI’s sake, leaders should be asking:

The Right Question: What’s our business strategy, and how can AI help us achieve it better, faster, and cheaper?

This shift in perspective changes everything. AI is not a strategy—it’s an enabler and accelerator. A tool. A force multiplier. A compounder. It should serve the mission and plans, not distract from it.

From Rabbit Holes to Real Impact Through Value Drivers

When companies start with business objectives—growth, profitability, customer experience, operational efficiency—they need to break them down into clear value drivers that dictate strategic priorities. AI should be applied in alignment with, for instance, these priorities to maximize impact:

  • Revenue Growth: AI can optimize pricing strategies, enhance market segmentation, and improve conversion rates, leading to more effective go-to-market execution.
  • Operational Efficiency: AI-powered process automation and predictive maintenance reduce inefficiencies, directly improving cost structures and profitability.
  • Customer Experience: AI-driven personalization, chatbot automation, and sentiment analysis increase retention and customer lifetime value.
  • Innovation and Competitive Edge: AI accelerates R&D cycles, facilitates trend detection, and enhances strategic decision-making, ensuring companies stay ahead of market shifts.

The key is that AI should not drive the strategy—it should support strategies derived from the most critical value drivers. Without this structured alignment, AI investments will remain scattered, failing to deliver meaningful outcomes.

AI Disconnected from Business Strategies Is Just Noise

Companies that approach AI as an independent initiative often struggle with fragmented efforts, pilot purgatory, and a lack of ROI. Meanwhile, those who tie AI to well-defined strategic value drivers gain real competitive advantages by ensuring AI aligns with execution and delivers measurable impact.

So, forget about crafting AI strategies in isolation. Instead, refine your business strategy—rooted in clear value drivers—and then leverage AI as a powerful, scalable tool to execute it better, faster, and more efficiently than ever before.

Integrating everything into a value creation management platform ensures that AI’s impact compounds rapidly and at scale; hence, mastering value creation will be delivered. That’s the answer to the real question. Thoughts? Contact us.

About the author:
Ralf Hirt CEO & Founder - CovQ by 8W8
Chief Executive Officer and founder, Ralf Hirt, launched CovQ by 8W8 with a vision to empower business owners, management teams, partners, and investors to achieve their full potential and create compound value. Ralf brings extensive experience from diverse roles across volatile phases in the tech, marketing, and commerce industries, holding operational executive positions worldwide, including Hong Kong/China, Sydney/Australia, London/UK, Munich/Germany, and New York City since 2005. Throughout his career, Ralf has driven growth for tech companies such as Harri, TUNE (acquired by Branch & Constellation Software), MODE, DoubleClick (acquired by Google), fit CRM (acquired by Omnicom), in addition to advising Prion Group from inception to successful sale to Accenture. A 'fun fact': Ralf's global experiences inspired the creation of 8W8, the 'New World Modelling Engine,' introduced in his fiction work "8W8 – Global Space Tribes" in 2007 and expanded in summer 2020. With a background spanning companies of various sizes and mentoring dozens of tech businesses, Ralf consolidated his learnings into CovQ by 8W8 leading to the development of the CovQ Value Creation OS and the briefing paper 'Mastering Value Creation by Centering Strategy and Execution' produced by Harvard Business Review Analytic Services in association with CovQ by 8W8.