Strategic decision-making in the age of AI

It’s easy to outsource a lot of tasks, but strategic thinking is still better done by humans

Blog
Geetha Rajan

Geetha RajanDirector of Corporate Strategy at Freshworks

Aug 20, 20253 MIN READ

AI is getting really good at doing things we used to do ourselves—sometimes better, often faster. So it’s no surprise that we’ve started handing over more and more tasks. But there’s a line. When we start outsourcing the thinking, we lose twice: first, to the risk of mediocrity (AI may sound confident, but it’s not always correct), and second, to a slow erosion of our own strategic muscle.

Strategic thinking has always meant cutting through complexity to find clarity. Today's challenge? We're drowning in data but starving for insight. Despite having more research capabilities than ever, most strategic decisions aren't getting demonstrably better. If anything, many are becoming more derivative, more generic.

The real bottleneck isn't access to information—it's knowing what to do with it. AI won’t solve that for us, at least not alone. 

The best teams are leveraging AI to amplify their thinking, not replace it. This aligns with what we're seeing in Freshworks’ 2025 Global AI report, where organizations that treat AI as a strategic partner—rather than a replacement—are achieving significantly better outcomes.

AI can crunch through massive datasets and spot patterns across industries in minutes. But the decisions that actually move the needle—market positioning, timing, organizational readiness—those still depend on human intuition about context, stakeholder dynamics, and competitive landscape.

Using AI as your research partner (not autopilot)

The smartest strategic thinkers I know don’t hand over the wheel. They treat AI like a really good research assistant: fast, broad, with moments of impressive insight—but not in charge. Here’s how they use it:

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Get ready to eliminate complexity

Deep research that expands your view: Tools like ChatGPT's Deep Research, Claude, and Gemini can analyze hundreds of sources faster than any analyst team. But the real win is breadth. AI will find adjacent markets you hadn't considered, competitors you missed, regulatory changes that might blindside you. But figuring out which insights actually matter? That's still on you.

Prioritization that cuts through the noise: AI can look at your sales pipeline, customer behavior, competitive moves, and financial data all at once. Say you're deciding between expanding to new markets or going deeper with existing customers. AI can model lifetime values and market saturation—but only you know if your team is ready for international expansion.

Sequencing that reveals what humans miss: AI really shines at mapping interdependencies that human planning usually misses. Feed it your constraints and it'll show you different ways to sequence initiatives. It might tell you that launching in Europe before your enterprise features are ready will cost you 20% in revenue, but you decide if that trade-off makes strategic sense.

Scenario planning that’s actually robust: Forget optimistic/pessimistic/realistic. AI lets you model dozens of scenarios at once. The power is in the modeling, but the judgment comes in deciding which scenarios are worth planning for.

Read also: How AI agents will make smart decisions

Knowing when to trust the model—or your gut

The biggest mistake I see is people following AI recommendations just because they seem "data-driven." AI’s trap isn’t when it gets things wrong, but when it sounds so right, even when it’s wrong. The real skill is in knowing when AI insights are gold and when your human judgment should override everything.

Market research: AI is fantastic at analyzing competitor pricing, customer feedback patterns, and regulatory shifts. But when deciding if your brand is ready for a premium positioning move? Sometimes the data says yes but your gut says wait. Trust the gut.

Investment decisions: AI can model resource allocation and ROI with impressive precision. But choosing between new markets versus doubling down on existing customers often comes down to team culture, risk appetite, and strategic vision—things AI can't measure.

Timing calls: AI helps with launch sequences and dependency mapping. But deciding if the market is ready for your product, or if your team has bandwidth for another major initiative? That requires reading organizational dynamics beyond data patterns.

The bottom line

The companies getting AI right aren't the ones with the fanciest AI setups—they're the ones whose people have figured out how to think better with AI as a partner. That’s the takeaway from our Global AI Report: the highest-performing organizations with the best outcomes come from blending AI capability with human strategic judgment.

This isn't about becoming more "data-driven." It's about becoming more strategically intelligent. AI helps you see patterns, model scenarios, and process complexity at scale. But the decisions that define your company's future? Those still need human ability to read context, timing, and competitive dynamics.

The question isn't whether AI will make you a better strategic thinker. It's whether you'll learn to use it as a thinking partner instead of a thinking replacement.