Why every business needs an AI strategy (even if AI isn’t the strategy)
Why every business needs an AI strategy (even if AI isn’t the strategy)
AI is not a strategy, but you still need one
When ChatGPT first hits the scene, it felt like magic. You typed in a question and out came paragraphs of seemingly human responses. That “wow” moment sparked a wave of experimentation across industries.
However, Jack Jorgensen, General Manager of Data, AI & Innovation at our IT delivery arm, Avec, points out:
“There’s a big difference between punching in a search query and building something deterministic and robust enough to run in production systems.”
And that difference is exactly where many businesses get stuck. According to our latest AI survey, nearly half (47.6%) of organisations are still in the experimental pilot stage. This isn’t inherently bad. Testing is critical, but it highlights a bigger issue: too many companies are running pilots without a clear strategy.
The hammer and nails problem
One of the most striking survey responses captured the mindset perfectly: “AI is a solution to some business needs. It’s not an objective or self-evident value proposition in its own right.”
Jack expands on this:
“What we’re seeing is a shift from the traditional IT delivery model, where you start with the value proposition and business case, then source the right tool. With AI, too many leaders are saying, ‘We’ve got this new hammer, now where are the nails?’”
That approach leads to wasted investment, disjointed projects, and technology that doesn’t deliver value. AI may not be the strategy, but without a strategy, you’re setting yourself up to fail.
Why “no strategy” is not an option
Some executives have argued that AI doesn’t need a dedicated strategy, comparing it to something as basic as staplers or office chairs. But as Jack explains, this is dangerously short-sighted:
“AI is a tool, yes. But it’s a tool that comes with new cybersecurity threats, compliance challenges, and ethical considerations. Ignoring it leaves your business exposed.”
From phishing attacks to vulnerabilities in AI-generated code, the risks are real. Without a roadmap, companies open themselves up to reputational damage, compliance breaches, and spiralling costs.
As JP Browne, Practice Manager from Talent Auckland puts it bluntly:
“Burying your head in the sand is not an option. AI is here, one way or another, and every organisation will be affected by it.”
The IT department squeeze
Another dynamic uncovered in our research is the unusual role IT departments are playing in AI adoption. Traditionally, IT has been a service function, enabling strategy set elsewhere in the business. But with AI, the tables have turned.
“Executives are excited about AI and pushing hard to adopt it, but IT leaders are often the ones hitting the brakes,” JP notes. “They’re saying: yes, this is powerful, but we need to address security, infrastructure, and compliance first.”
That tension is leaving many organisations in limbo. The money is there. The executive interest is there. But without a strategic framework to prioritise use cases, align with business goals, and manage risk, progress stalls.
Building an AI strategy that works
So, what does an effective AI strategy look like? It doesn’t have to be a 50-page blueprint. In fact, Jack recommends starting simple:
- Define the business problem. Don’t adopt AI for the sake of it. Be clear about the challenge you’re trying to solve.
- Set guardrails. Establish data security, compliance, and ethical guidelines before scaling experiments.
- Start small, but with intent. Pilots are valuable, but only if they feed into a roadmap for production-ready solutions.
- Assign ownership. Decide who is accountable for AI adoption across the business. Avoid the “hot potato” problem where no one owns it.
- Review and adapt. A strategy isn’t fixed. As AI evolves, so should your approach.
“Having no AI strategy is worse than having the wrong one,” says Jack. “At least a flawed strategy can be corrected. No strategy leaves you wide open.”
From fear to opportunity
Much of the fear surrounding AI, from job loss to ethics and compliance, stem from uncertainty. And uncertainty thrives where there’s no plan.
With the right strategy, AI becomes less of a threat and more of a force multiplier. It can streamline workflows, surface insights, and free people up from repetitive tasks to focus on higher-value work. But those benefits only come when you align AI projects with business objectives and set the right foundations.
As JP concludes:
“AI can absolutely change the game for productivity and competitiveness. But only if you stop reacting, start planning, and make it part of your business strategy.”
AI is not the strategy. But without a strategy, AI is just hype. Organisations that take the time to define their approach, even if it starts small, will be the ones that cut through the noise, manage the risks, and realise real business value.
If you’re ready to source in-house AI capability, get in touch with our team. Or, if you’re looking to kick off a data project, reach out to Jack’s team at Avec.