Developing competitive advantage in an AI-driven world

Philippe De Ridder

Philippe De Ridder

Founder & CEO

Simply adopting AI won’t guarantee a competitive advantage.

AI, and especially generative AI, is a general-purpose technology—everyone has access to it. The question is how you use it to build something unique. 

In this blog, we’ll dive into strategy archetypes you need to think about as you aim to set an AI strategy and build competitive advantage in an AI-driven world.

1. First-mover advantage

One strategy is to be the first in your industry to adopt each new wave of AI, gaining a temporary edge each time,, as it allows you to:

  • Experiment with and refine AI applications before competitors catch up.
  • Establish leadership in AI-driven capabilities, building a reputation for innovation.
  • Attract AI-savvy talent eager to work at the forefront of technology.


However, this advantage can quickly fade if you miss a step. To sustain a first-mover edge, businesses must:

  • Stay agile: Continuously iterate and adapt AI applications to remain relevant as the technology evolves.
  • Invest in future waves: Anticipate the next wave of AI adoption (efficiency, quality, or transformation) and prepare to capitalize on it.
  • Avoid complacency: A common pitfall for first movers is assuming their lead will last. Competitors often reverse-engineer successes and use similar technologies with incremental improvements. To stay ahead, first movers must keep innovating and refining their strategies.

 

First-mover advantage is most powerful when paired with a long-term vision. While being first provides an initial boost, sustaining leadership requires businesses to continuously evolve and adapt.

2. Reinforcing core competencies with AI

AI can be a powerful tool for reinforcing what your business already does well. Companies should focus on integrating AI to amplify their core competencies, ensuring it aligns with their unique value propositions. For instance:

  • Operational efficiency: Automating processes to reduce costs and improve reliability.
  • Product quality: Using AI-driven insights to enhance product quality rather than chasing trends.


By deploying AI to reinforce existing strengths, organizations can create efficiencies and improvements that competitors find difficult to replicate.

3. Creating new business models

The true transformative power of AI lies in its ability to enable entirely new ways of doing business. Much like the digital revolution created platforms like Airbnb and Amazon, AI offers new opportunities for business models. Examples could be to:

  • Develop new revenue streams: Leverage AI to introduce subscription-based or data-driven services.
  • Reimagine customer experiences: Use AI to personalize interactions at scale, creating experiences tailored to individual preferences and behaviors.
  • Innovate market offerings: Deploy AI to create products and services that were previously unimaginable, such as autonomous solutions or real-time adaptive systems.


These new business models not only differentiate your business but (if integrated well) also make it harder for competitors to replicate your success.

Showrunner uses generative AI to allow viewers to make their own TV episodes. Users can use prompts to generate their own episode of the series, selecting everything from the characters and storylines to the angles and shots.

4. Building sustainable AI ecosystems

Competitive advantage in an AI-driven world also requires creating a robust ecosystem around AI implementation. This involves:

  • Talent development: Upskilling employees to work alongside AI and fostering a culture of innovation.
  • Data infrastructure: Investing in secure, scalable data systems that support AI’s growing demands.
  • Ethical AI practices: Ensuring transparency, fairness, and accountability in AI deployment to build trust with stakeholders.


By prioritizing these elements, businesses can create an AI ecosystem that not only drives competitive advantage but also ensures long-term sustainability and adaptability.

Webinar: Dive deeper into how you can transform to an AI-first operating model

5. Innovating beyond the immediate

The most ambitious goal is to build something that competitors simply cannot replicate, though this isn’t feasible for everyone.

Businesses need to look beyond immediate gains and plan for transformative opportunities. AI’s potential isn’t just in making current processes faster or cheaper but in creating entirely new paradigms that redefine industries and businesses.

An outside-in perspective: Looking at what will change and what won’t

Rather than creating a strategy rooted in the current way of working, start by analyzing external AI market drivers. Ask yourself, ‘What will AI change in your industry? What won’t change?’ 

For example, imagine a world where personal AI assistants handle our shopping—AI suggesting and even buying clothing on our behalf. This would transform the customer journey, touchpoints, and how brands engage with consumers. Yet, some experiences will likely remain unchanged. Humans will still touch, feel, and interact with packaging, fabric textures, and other sensory elements—experiences that remain vital even if the purchasing decision is automated.

This dual perspective helps us anticipate what AI will disrupt and what will persist—positioning you to lead, not just react.

Future-back approach

Instead of adapting AI to fit current practices (a present-forward approach), envision what the next evolution of your business could look like at its peak—your “wave three” transformation. Whether it’s a specific function, a department, or the entire organization, picture what a fully realized, AI-powered future would entail, and work backward to chart the steps needed. This ensures that actions taken in the near term (wave one and wave two) strategically build toward the long-term vision, rather than simply optimizing today’s processes that may soon be outdated.

Imagine autonomous systems that redefine customer engagement. Envision AI-driven marketplaces that dynamically connect consumers and providers. Explore predictive analytics to anticipate trends and position yourself ahead of market shifts.

Setting your AI strategy

Simply adopting AI will not lead to a competitive advantage. Building a real competitive advantage requires an AI strategy that touches upon and synchronizes all areas of the business – from leadership to data and governance.

(re)Watch our webinar on Building your AI Strategy

Keen to dive deeper? Explore how we work with AI Strategy