Strategic renewal in the age of artificial intelligence

Jacques Bughin
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Jacques Bughin: Machaon Advisory, Belgium

Journal of AI, Robotics & Workplace Automation, 2025, vol. 3, issue 4, 286-292

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 (search for similar items in EconPapers)
JEL-codes: G2 M15 (search for similar items in EconPapers)
Date: 2025
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