{"id":2233,"date":"2025-02-20T11:00:00","date_gmt":"2025-02-20T12:00:00","guid":{"rendered":"http:\/\/www.backstagelenses.com\/?p=2233"},"modified":"2025-02-20T15:22:00","modified_gmt":"2025-02-20T15:22:00","slug":"ai-business-strategy-a-new-opportunity-or-a-risky-bet-heres-my-take","status":"publish","type":"post","link":"http:\/\/www.backstagelenses.com\/index.php\/2025\/02\/20\/ai-business-strategy-a-new-opportunity-or-a-risky-bet-heres-my-take\/","title":{"rendered":"AI Business Strategy: A New Opportunity or a Risky Bet? Here\u2019s My Take"},"content":{"rendered":"
\u201cDo you use AI? What AI tools are you using? Do you see any ROI?\u201d <\/em> If you\u2019ve scrolled LinkedIn or Reddit recently, these questions regarding AI business strategy are everywhere. Here\u2019s the catch: there\u2019s no universal answer. AI has proven its potential, but it also comes with risks.<\/p>\n<\/p>\n Unity, a game development platform, suffered a $110M loss<\/a> when bad data corrupted its machine learning (ML) algorithm. Meanwhile, Snack Brands, a snack food supplier, cut its weekly SKU runs by 62%<\/a>, using AI to streamline production. So, should you invest in AI? And if so, how can you approach it smartly?<\/p>\n To find out, I dug into 17 companies across industries, pulling together actionable insights on the benefits and challenges of AI in business. Let\u2019s dive in.<\/p>\n Table of Contents<\/strong><\/p>\n <\/a> <\/p>\n Before AI, business strategy often relied on slow processes and incomplete data. Teams made decisions based on gut instincts, outdated spreadsheets, and chasing trends that had already peaked. Predicting market changes, understanding customer behavior, or optimizing workflows felt like shooting in the dark.<\/p>\n Add AI to the mix, and now everything\u2019s changed. Businesses can harness real-time insights, automate repetitive tasks, and predict outcomes with incredible precision. Let\u2019s look at a few key areas where AI has transformed business strategy:<\/p>\n Pro tip: <\/strong>HubSpot Academy offers a free course on collecting and acting upon transactional data with AI<\/a> curated by Senior Professor Crystal King. Check it now.<\/li>\n<\/ul>\n By letting AI study search queries from within your ecommerce website, you will also discover opportunities to widen your stock with new products.<\/p>\n HubSpot recommends:<\/strong> Predicting Customer Behavior and AI: My Journey to Understanding the Customer Mind [+ Pro Tips]<\/a><\/p>\n Watch how a centralized HubSpot Service Hub reduces the time of customer reps while maintaining stellar customer service.<\/p>\n \u00a0<\/p>\n <\/a> <\/p>\n Still doubt AI is a thing for your business? Historically, breakthroughs like the printing press or railways started as speculative bubbles but completely transformed how information is consumed and how people travel. (Austria almost ditched their emperor for spending on railways instead of wars!)<\/em><\/p>\n AI follows a similar trajectory \u2014 what might look like a trend now could, and will,<\/em> create entirely new industries and markets.<\/p>\n The list of benefits is long, but I\u2019ll focus on a few that matter most:<\/p>\n AI gives businesses an edge by automating tasks, speeding up decisions, and spotting hidden insights. Automotive tech group Forvia realized their larger competitors were pulling ahead, and they needed to scale fast.<\/p>\n To do so, they turned to AI with the Eightfold Talent Acquisition tool. The results were impressive: a 3.5X increase in visitor-to-applicant conversions,<\/a> 90,000 applications from 70 digital recruiting events, and a 30% productivity boost \u2014 all thanks to AI.<\/p>\n Source<\/a><\/em><\/p>\n AI boosts predictive analytics by processing huge amounts of data and making accurate predictions on pretty much anything in your business \u2014 even customer attrition and the \u201cwhys\u201d behind it.<\/p>\n Case in point<\/strong>: A fitness app with 75 million users partnered with InData Labs to integrate AI and enhance user experience.<\/a> InData Labs revamped the app\u2019s data storage using PostgreSQL, Kafka, and Apache Spark, adding 10 dashboards for real-time insights on key metrics. They also built a machine learning-based recommender system that personalized workout plans based on user data.<\/p>\n The result? A smarter, more engaging app that delivers personalized experiences and scales way better than before.<\/p>\n Pro tip: <\/strong>What I love most about AI in prediction is how it fits perfectly into lead generation. Take HubSpot\u2019s predictive AI lead scoring<\/a> to automatically analyze and adjust lead scores based on metrics like email engagement and pricing page visits. Strike when the iron is hot.<\/p>\n Source<\/a><\/em><\/p>\n Personalized content at every stage is the user journey isn\u2019t a \u201cnice-to-have\u201d anymore; it\u2019s a \u201cmust-have.\u201d<\/p>\n Your customers wanna feel like you\u2019ve created content just for them. But it\u2019s not just about those catchy lines anymore. Today\u2019s content needs examples and visuals like a well-crafted video to really grab their attention.<\/p>\n Over 80% of consumers want more video content<\/a> from brands, but creating videos at scale has always been a pricey move, usually reserved for big companies with big budgets.<\/p>\n Source<\/a><\/em><\/p>\n So, if you wanna add videos to your business strategy, there\u2019s a cheaper way \u2014 and I gotta say, after testing Idomoo<\/a> for one of my clients, it\u2019s straight-up magic.<\/p>\n With tools like Idomoo\u2019s, you can turn any written document, like customer support guides or web pages, into a cool AI-generated video in no time. This \u201cdoc-to-video\u201d feature is just one of many ways AI\u2019s shaking things up \u2014 you can also turn knowledge bases, websites, and more into personalized videos voiced human-like.<\/p>\n Plus, this type of AI learns your brand’s story, picking up your style like a pro designer. You can scale up video production while staying on-brand, and all without the hefty price tag.<\/p>\n \u00a0<\/p>\n Customer support and engagement have never been easier thanks to AI. It handles routine questions and fetches relevant articles from the knowledge base. It reroutes requests to relevant agents, labels them with priority, asks follow-up questions, and more.<\/p>\n This not only keeps customers happy but also sharpens the whole business strategy by improving efficiency and opening doors for upselling.<\/p>\n Take Camping World, for example.<\/p>\n They turned their call center around with IBM\u2019s AI-powered assistant, Arvee.<\/p>\n The results? A 40% boost in customer engagement<\/a> and wait times slashed to just 33 seconds. Plus, agent efficiency jumped by 33%, giving agents more time to handle complex inquiries and generate extra revenue. It\u2019s a win all around.<\/p>\n Source<\/a><\/em><\/p>\n AI assistance made it much easier for businesses to keep up with demand, reduce waste, keep products in stock, and make smarter restocking decisions.<\/p>\n Walmart proves my point. They use AI to track 500 million events and handle 1 million transactions<\/a> every day<\/strong>, giving them a clear, up-to-date picture of their inventory across all stores. Their advanced replenishment system processes billions of messages daily, creating detailed restocking strategies in just hours.<\/p>\n AI in business<\/a> automates tasks, speeds up workflows, and helps make quicker decisions. This lets businesses stay flexible, optimize resources, cut costs, and increase overall productivity.<\/p>\n For instance, Delta Air Lines uses AI<\/a> to make its operations smarter and faster. On the customer service side, AI helps agents quickly access answers to common questions, cutting down wait times and improving the customer experience.<\/p>\n This tech also helps optimize pricing by analyzing data and recommending what customers are willing to pay for premium services.<\/p>\n Finally, AI is revolutionizing production.<\/p>\n It predicts demand, streamlines workflows, and adjusts when needed. This reduces downtime, improves resource use, and avoids delays. It also helps plan maintenance and aligns production with demand.<\/p>\n The best example here is Snack Brands. This major Aussie snack food supplier used RELEX AI-powered planning tools<\/a> to solve tough production challenges.<\/p>\n With many products and constant updates, their schedules were getting messy. By using AI to optimize sequencing, they cut the number of SKUs run weekly from 40 to just 15. This reduced plan generation times by 50%, improved production flow, and aligned output with customer demand.<\/p>\n Source<\/a><\/em><\/p>\n <\/a> <\/p>\n There\u2019s no doubt about AI\u2019s potential to transform operations and drive growth. But it’s not all smooth sailing. Issues like data bias and poor-quality inputs can derail even the best strategies.<\/p>\n Here are four challenges I\u2019ve seen businesses face when bringing AI into their plans.<\/p>\n For AI to work, it needs clean, reliable data. If the data is poor or incomplete, it can throw off AI, churning out bad predictions and wrong decisions. And let\u2019s be real: we still run into issues with made-up or inaccurate info.<\/p>\n To safeguard themselves, businesses need strong data pipelines and observability tools to catch and fix problems quickly. Without that, AI won\u2019t be able to deliver the competitive edge it promises.<\/p>\n For example, Unity, a leading game development platform, suffered a $110M loss<\/a> when bad data corrupted its machine learning algorithm for ad placements.<\/p>\n This error not only impacted growth but also required costly fixes to restore functionality, highlighting the risks of poor data management.<\/p>\n Pro tip: <\/strong>HubSpot’s Breeze AI<\/a> simplifies tasks across marketing, sales, and customer service. Breeze Copilot helps automate your work, while Breeze Agents handle everything from content to outreach. Breeze Intelligence keeps your data fresh and actionable and helps you make better decisions without the extra effort.<\/p>\n AI brings innovation, but it also opens doors to new risks, particularly in cybersecurity. So, you\u2019ve got to protect sensitive information before incorporating machine learning.<\/p>\n In 2023, global malware attacks hit 6.06 billion<\/a> \u2014 a 10% jump from the year before, according to Statista. The market suggests AI had a sheer influence on it.<\/p>\n Source<\/a><\/em><\/p>\n Our marketing and AI survey<\/a> found that 43% of marketers use AI to create content. Since content is a big part of almost every business strategy, this brings us to the problem: AI can totally mess with creativity.<\/p>\n It works by analyzing patterns and spitting out content based on what it\u2019s learned. While that\u2019s great for efficiency, it makes everything feel a bit \u2026 unoriginal.<\/p>\n Don\u2019t lean too much on AI; the unique, human spark that makes content stand out can fade. Over time, it risks turning bold ideas into cookie-cutter results.<\/p>\n Since AI learns from past data, it can inherit existing biases. This can lead to skewed results, unfair decisions, or even the exclusion of certain groups, damaging your brand\u2019s reputation. Left unchecked, AI bias can ruin your strategy entirely.<\/p>\n Actually, according to DataRobot\u2019s 2022 survey,<\/a> data bias can result in up to 62% lost revenue.<\/p>\n Source<\/a><\/em><\/p>\n <\/a> <\/p>\n AI can completely change how you work and make your business better. But only if you do it right. So, how do you incorporate AI into your business development strategy<\/a> so it works in your favor?<\/p>\n Let me take you through a practical 6-step guide.<\/p>\n First things first: not everything in your business needs AI. Focus on areas where automation or data-driven decisions can make the biggest impact.<\/p>\n Ask yourself these questions:<\/p>\n There are tons of AI tools out there. Roll up your sleeves to pick those aligned with your tech stack and business needs.<\/p>\n More things to focus on when selecting the AI tool:<\/p>\n Pro tip: <\/strong>HubSpot’s AI tools<\/a> cover a range of functions designed to streamline marketing and sales, including content generation for blogs and social posts, automated website building, professional email drafting, reporting, and a chatbot that provides 24\/7 customer service, all helping startups boost efficiency and customer engagement.<\/p>\n Source<\/a><\/em><\/p>\n You don\u2019t need to implement AI across your whole business overnight. Start with a pilot project. This lets you test what works without putting too many resources on the line.<\/p>\n For instance, if you’re in retail, you can begin with AI-powered product recommendations on your website. Track how your conversion rate changes and gather customer feedback before expanding to other areas, like inventory management or customer service.<\/p>\n AI is a tool, but it\u2018s your team that makes it work. Invest in training them to use AI tools and understand the data they provide. Your team doesn\u2019t need to be AI experts, but they should understand the tool\u2019s core principles.<\/p>\n For example, if you’re using AI for marketing,<\/a> make sure your team understands what input the tool works on, how to interpret the AI insights, and tweak strategies accordingly.<\/p>\n I watched an amazing video by Jason Staats<\/a> on using AI roleplay to help teams understand how it works. Here are his juiciest takeaways:<\/p>\n Implementing AI isn\u2019t a \u201cset it and forget it\u201d deal.<\/p>\n Continuously monitor performance and refine your AI tools. The more data the AI gets, the smarter it becomes. Over time, you may need to adjust how you\u2019re using AI as trends and technology evolve.<\/p>\n AI can do a lot, but there\u2019s still no substitute for human expertise. Use AI to back up your team, not replace them.<\/p>\n Example? AI can help with lead scoring, but people build connections and seal the deals.<\/p>\n Best example? Zappos<\/a>. It uses AI for tasks that can be handled efficiently at scale \u2014 answering basic customer queries, providing shopping suggestions, and even assisting with past orders through AI-powered chatbots.<\/p>\n However, when AI can’t give a satisfying answer or the customer needs more detailed help (like with a complex issue or personalization), Zappos makes it easy to reach human support.<\/p>\n<\/a><\/p>\n
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AI and Business Strategy: Before vs. After<\/strong><\/h2>\n
1. Decision-Making<\/strong><\/h3>\n
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2. Data Processing<\/strong><\/h3>\n
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3. Customer Understanding<\/strong><\/h3>\n
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4. Predictions<\/strong><\/h3>\n
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5. Resource-Intensive Processes<\/strong><\/h3>\n
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6. Scalability<\/strong><\/h3>\n
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7 Benefits of Using AI for Business Strategy with Real Examples<\/strong><\/h2>\n
Competitive Advanta<\/strong>ge<\/strong><\/h3>\n
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Predictive Analysis<\/strong><\/h3>\n
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Personalized Marketing<\/strong><\/h3>\n
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Better Customer Support<\/strong><\/h3>\n
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Smarter Inventory Management<\/strong><\/h3>\n
Improved Operational Efficiency and Agility<\/strong><\/h3>\n
Production Optimization<\/strong><\/h3>\n
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4 Challenges of Using AI for Business Strategy<\/strong><\/h2>\n
Data Quality, Accuracy, and Availability<\/strong><\/h3>\n
Safety and Security<\/strong><\/h3>\n
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The Creativity Crisis<\/strong><\/h3>\n
AI Bias<\/strong><\/h3>\n
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How to Implement AI into Your Business Strategy in 6 Steps<\/strong><\/h2>\n
1. Identify areas that can benefit from AI.<\/strong><\/h3>\n
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2. Choose the right tools and technologies.<\/strong><\/h3>\n
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3. Start small and test.<\/strong><\/h3>\n
4. Train your team.<\/strong><\/h3>\n
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5. Monitor and optimize.<\/strong><\/h3>\n
6. Maintain the human touch.<\/strong><\/h3>\n