Why define your AI strategy?

In boardrooms across the country, the conversation around Artificial Intelligence often sounds the same. There is a palpable sense of urgency, a recognition that something fundamental is shifting. Yet for many mid-market companies, this urgency has not yet translated into action. Instead, it has created a state of reactive paralysis, caught between a pressure to adopt AI for efficiency and a genuine fear of the risks involved. This is the "AI Dichotomy": the gap between expectation and execution.

Without a formal strategy, businesses drift.

They experiment with individual tools, celebrate small, isolated wins, and watch as a chaotic mix of unsanctioned ‘shadow AI’ spreads through the organisation. This is not a plan for growth; it is a recipe for inefficiency and risk. A documented AI strategy, supported by a clear roadmap and a robust governance framework, is the essential tool for navigating this disruption. It is the difference between being a passenger in the AI revolution and taking the driver's seat.

Strategy: Beyond Efficiency to Business Model Evolution

The first, and most crucial, pillar of a successful strategy is understanding that AI is not merely a tool for doing the same things faster. It is a catalyst that can fundamentally challenge the very nature of how your business creates value. For any company whose model is built on human expertise and effort, AI prompts critical questions about its future value proposition. For instance, a services business that has historically charged for time and materials may find that model unsustainable as AI drastically reduces the human hours required to produce an output.

A forward-looking strategy forces this essential conversation. It moves the focus away from simply cutting costs and towards redefining your value in the market. It prompts the leadership team to ask: where will our defensible value be created in three years? How should our products or services evolve to meet the challenges of an AI-driven world? 

Governance: Building Your Foundation for Safe, Scalable Growth

While strategic vision is essential, a robust governance framework makes it achievable. For many companies, the immediate priority is to bring order to the internal chaos. Before you can confidently build new AI-powered services, you must first establish control and clarity across the organisation. As the adage goes, you cannot govern what you cannot see.

A strong governance pillar addresses the proliferation of shadow AI by creating an inventory of existing tools and establishing clear policies for their use. It involves implementing common corporate tooling, delivering consistent training, and setting up clear processes for managing incidents. This creates what we refer to as a "compliance moat", a secure foundation upon which genuine innovation can be built. It provides staff with the confidence to experiment safely and assures clients that their data is being handled responsibly. Multiple reports confirm that the vast majority of UK CEOs expect GenAI to fundamentally change how their company creates value, highlighting the urgency of establishing a secure framework to manage this change.

Roadmap: Turning Potential into Product

With a clear strategy and a secure foundation, the focus can shift to the roadmap: the practical, phased plan for execution. This is where AI becomes a practical tool for driving internal efficiencies, and (possibly) a core component of your revenue-generating products and services. The goal is to move from defence to offence, using AI not just to protect margins but to create new, defensible revenue streams and enhance your competitive edge.

1. Quick wins – foundational projects that deliver efficiency and maturity (e.g. secure data platform).

2. Core enhancements – strengthen services with AI-powered features.

3. Transformation – create new offerings and market opportunities.

A well-structured roadmap prioritises initiatives based on feasibility, strategic alignment, and expected value. It might begin with foundational projects that deliver quick wins and build organisational maturity, such as developing a centralised and secure data platform. From there, it can progress to enhancing core services with AI-powered features, before culminating in truly transformative offerings that create new market opportunities. This phased approach ensures that investment is managed, momentum is built, and the business evolves in a controlled, strategic manner.

The Private Equity Perspective: Strategy as a Sign of Maturity

For PE-backed companies, the stakes are even higher. An AI strategy is not an academic exercise; it is a critical component of enterprise value. When we conduct AI Due Diligence on behalf of an investor, the first thing we look for is a written and agreed-upon AI strategy. Its existence is a powerful signal. It demonstrates that the leadership team is not simply reacting to trends but is proactively managing technological disruption.

The specifics of the roadmap are important, but the fact that a clear, top-down strategy is owned and agreed upon is paramount. It shows an awareness of the commercial threats, a plan to mitigate operational risks, and a vision for future growth. In a turbulent market, this documented foresight provides investors with the confidence that the business is not just built for today, but is being strategically positioned to win tomorrow.

From Theory to Action: Your First Steps

Embarking on this journey does not require a multi-year plan from day one. Real progress starts with a series of focused, practical actions. Business leaders should begin by analysing how competitors, both direct and indirect, are leveraging AI to gain an advantage. This external view provides crucial context. Internally, holding structured workshops with teams from across the business is an effective way to identify high-value opportunities for both back-office efficiency and new product or service features.

A strong governance framework should focus on a few practical priorities:

• Create an inventory of existing tools

• Establish clear policies for their use

• Deliver consistent training

• Set up processes for managing incidents

From these insights, the foundational elements of governance can be put in place. This includes developing a clear and simple AI policy that is communicated to all staff, and implementing a basic governance structure to ensure all AI initiatives are delivered responsibly. Finally, success depends on people. Driving AI literacy throughout the organisation, perhaps by appointing and empowering internal AI champions, is critical for building momentum and fostering a culture of confident innovation.

Of course, navigating this landscape can be complex. A specialist AI consultancy can provide the expertise and structure needed to accelerate these steps, ensuring your strategy is robust, your roadmap is achievable, and your governance is effective. If you would like to discuss how to build a clear and valuable AI strategy for your business, please get in touch.