Handbook of AI and Strategy: What Leaders Need to Know

In this conversation, Dr. Felipe Csaszar, Alexander M. Nicholson Professor and Chair of the Strategy Area at the University of Michigan’s Ross School of Business, outlines how artificial intelligence is reshaping the foundations and practice of strategy. Drawing on themes from his co-edited Handbook of Artificial Intelligence and Strategy, he explains how AI challenges the traditional assumption of bounded rationality, expands the frontier of possible business models, and demands new theories, tools, teaching approaches, and industry applications. He highlights both opportunities, such as more customized offerings, better understanding of customer needs, and superior predictive capabilities - and risks, including loss of strategic focus, “AI slop,” and excessive system complexity if AI is not guided by clear strategy and strong guardrails. Throughout the discussion, he stresses the importance of experimentation in designing human-AI decision systems, anticipates profound changes in firm size and organizational design, and argues that strategy education must rapidly evolve so that future leaders can work effectively with intelligent machines. Ultimately, he is optimistic that, with responsible implementation and ecosystem-wide engagement, the positive impact of AI on strategy, innovation, and value creation will outweigh the downsides. This podcast is brought to you by Global Management Consultancy. For more information, please visit www.globalmanagementconsultancy.com. Disclaimer: A. The background music used in this video is the property of its respective developer and is protected by Copyright. Although it is a free version, Business Talk, Global Management Consultancy and Deepak Bhatt do not hold the rights to this music. B. Dr. Felipe Csaszar shared key insights from his edited volume, Handbook of Artificial Intelligence and Strategy, in his conversation on the Business Talk podcast. The uploaded video contains copyrighted material; therefore, any modifications to graphics, music, or the presence of the author or host are strictly prohibited.