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Strategic renewal in the age of artificial intelligence
Journal of AI, Robotics & Workplace Automation,
3
(4),
286-292
(2025)
Abstract
Strategic renewal is essential for companies seeking to maintain a competitive edge in an era of rapid technological disruption, such as artificial intelligence (AI). Our findings reveal that while 45 per cent of companies acknowledge the need for renewal, only 17 per cent pursue radical transformation. Barriers such as AI capability gaps, leadership misalignment and the disruption dilemma hinder effective adaptation. Companies that successfully integrate AI-driven strategic renewal, however, demonstrate a balanced approach between exploration and exploitation, proactive investment in AI capabilities and strong leadership commitment. Through case studies of companies including IBM, NVIDIA and JPMorgan, this paper highlights key drivers of AI-led transformation and offers actionable strategies for executives. Ultimately, this research underscores that the future belongs to incumbents who proactively reinvent themselves in the AI age. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.
Keywords: strategic renewal; AI disruption; business transformation; organisational agility; leadership; digital reinvention; competitive advantage
The full article is available to subscribers to the journal.
Author's Biography
Jacques Bughin Dr Jacques Bughin is currently Chief Executive Officer of Machaon Advisory, specialising in digital technology economics and top management consultancy. Previously, he was a senior partner at McKinsey & Co. and leader of the McKinsey Global Institute. He collaborates with multiple institutions, from the United Nations (UN), the Science and Technology Options Assessment (STOA) Board of the European Parliament to the Portulans Institute and the Accenture Research Board. He has been a professor of management practices and is now a senior adviser to private equity companies Fortino Capital and Antler. He has published widely on technology and artificial intelligence (AI) in, among others, Sloan Management Review, Harvard Business Review, Technovation, Frontiers in Artificial Intelligence and European Business Review.
