–Strengthen the link between strategy and execution by embedding AI-supported assumptions directly into operating metrics, funding triggers and performance management. 2–4 percentage point annual increase in revenues;33 approximate threefold increase in likelihood of superior financial outcomes from stronger KPI alignment34 Predictive, AI-powered strategic planningFocus 4 AI turns strategy into a living system that senses change, compares options and reallocates resources continuously. Strategic planning encompasses enterprise and business-unit decisions on where to compete and how to win, including interpretation of market and internal signals, evaluation of strategic options and trade-offs, prioritization of initiatives and allocation of capital, talent and capacity.Traditionally, strategic planning has been a periodic coordination exercise anchored in annual cycles, static assumptions and delayed feedback from execution. AI turns strategic planning into a “living” process by continuously sensing signals, testing assumptions and linking decisions to execution. AI-enabled transformation of strategic planning TABLE 4 –Improve decision speed, robustness and confidence under uncertainty by continuously updating strategic assumptions based on real-time market, customer, competitor and internal signals. Approximately 30% faster planning cycles; 20–40% improvement in forecast accuracy311 From periodic sensing to continuous signal interpretation: Shift from calendar-driven strategy reviews to always-on interpretation of market, customer, competitor and internal signals. New data continuously challenge, update and reframe strategic assumptions. –Improve capital and resource allocation quality by reallocating capital, talent and capacity more dynamically towards the highest-value options as conditions change. Potential 2–3 percentage point decrease in costs; approximate 15–30% reduction in inventories32 2 From single-plan convergence to ongoing option comparison: Move away from committing to one approved plan towards maintaining a live portfolio of strategic options and trade-offs that are continuously compared as conditions evolve. 3 From fixed allocation to dynamic resource reallocation: Shift from annual, fixed commitments to trigger-based reallocation of capital, talent and capacity when performance, risk or opportunity thresholds are met. 4 From strategy handoff to execution-linked steering: Embed strategic choices directly into operating plans, funding flows and performance metrics, creating continuous feedback loops between strategy and execution. At a glance Ambition: opportunities to capture Action: how organizations are changing Review Plan Analyse Execute Organizational Transformation in the Age of AI: How Organizations Maximize AI’s Potential 25

Organizational Transformation in the Age of AI How Organizations Maximize AI%27s Potential 2026