Why AI Works, But Your Strategy Doesn't

Most companies celebrate their AI wins while their coordination falls apart. Teams move at different speeds, handoffs break, and the faster you automate individual functions, the slower your business becomes. Sangeet Paul Choudary, bestselling co-author of Platform Revolution and author of Reshuffle, explains why this isn't an execution problem; it's a fundamental misunderstanding of what AI actually does.

Choudary, who has advised CEOs at over 40 Fortune 500 companies and serves as Senior Fellow at UC Berkeley, argues that treating AI as automation technology creates speed mismatches that destroy coordination at scale. When marketing's AI outpaces sales, or engineering moves faster than operations can absorb, organizations don't get efficiency; they get fragmentation. The real opportunity isn't automating tasks; it's leveraging them by building coordination infrastructure that enables teams to work together without requiring upfront consensus on formats, workflows, or standards.

We discuss:

Why automation wins often mask coordination failuresHow speed mismatches between AI-powered teams break your businessWhat "coordination without consensus" means for competitive strategyWhy AI should be treated as infrastructure, not toolingWhere the next generation of competitive advantage comes from

Watch this conversation and ask your questions on LinkedIn or Twitter (X)!

Key TakeawaysReimagine Your Business Around Constraints, Not Tasks

Most organizations approach AI by mapping existing workflows and asking which tasks AI could automate faster or cheaper. This misses the transformative opportunity. The real question is whether the constraint that workflow was designed to solve still exists with AI capabilities.

When the shipping container made logistics reliable, manufacturing didn't just speed up the same processes - it abandoned vertical integration entirely and restructured around global supply chains. Similarly, when AI collapses the cost of certain knowledge work, the workflows built around those constraints become obsolete.

Leaders need to ask what problems their current organizational structure was designed to solve, then redesign from the ground up based on new assumptions about what's scarce and what's abundant.

Develop Strategic Foresight, Not Just AI Skills

Learning to use AI tools is table stakes, not competitive advantage. The critical capability is foresight; the ability to envision what the playing field will look like in 6-12 months and position accordingly.

This requires thinking in second and third-order effects rather than immediate impacts, recognizing patterns across seemingly unrelated industries (like applying TikTok's data collection model to manufacturing, as Shein did), and constantly questioning the assumptions underlying current business models.

Organizations must shift from asking "what should we do with AI" to "how does AI change where we compete and how we win." This applies equally to individuals planning careers and executives reimagining their businesses.

Learn how Knowledge Work Will Divide into “Above the Algorithm” and “Below the Algorithm” Jobs

A new hierarchy is emerging in knowledge work: jobs above the algorithm versus jobs below it. Workers who build, train, and improve algorithms retain agency and command premium compensation. Those whose work becomes standardized enough to be allocated by algorithms lose negotiating power, even if AI complements their output.

The dangerous middle ground is when AI augmentation flattens skill differences: fewer experienced workers using AI match the output of veterans, compressing the skill premium and commoditizing expertise. This isn't about whether AI substitutes for human tasks, but whether it absorbs sufficient differentiated work that remain roles become low-level and interchangeable.

The value shifts to those who manage risk and constraints in the system, not those who execute standardized processes alongside AI.

Episode Participants

Sangeet Paul Choudary is the best-selling co-author of Platform Revolution and author of the new book Reshuffle. He has advised leadership teams at over 40 Fortune 500 companies—including Nestlé, ExxonMobil, Daimler, ING, and Booking.com—as well as pre-IPO tech firms. Sangeet currently serves as a Senior Fellow at the University of California, Berkeley, and has spoken at global forums such as the G20 Summit, World50 Summit, and the World Economic Forum.

Michael Krigsman is a globally recognized analyst, strategic advisor, and industry commentator known for his deep business transformation, innovation, and leadership expertise. He has presented at industry events worldwide and written extensively on the reasons for IT failures. His work has been referenced in the media over 1,000 times and in more than 50 books and journal articles; his commentary on technology trends and business strategy reaches a global audience.