01External environment analysis
The external environment analysis stage (PESTLE, market trends, competitive landscape) typically requires significant research time. AI can compress this substantially.
For a PESTLE analysis, ask ChatGPT (with web browsing) or Claude to generate initial analysis: 'Conduct a PESTLE analysis for [industry sector] in the UK in [year], focusing on factors most relevant to a [type of organisation]. For each factor, identify the two or three most significant current developments and their strategic implications.'
This provides a research-based starting point that you supplement with your own intelligence and sector knowledge. The AI output is not final strategy: it is a structured starting point that would have taken several hours to produce from scratch.
For competitive analysis: 'Based on public information, assess the competitive dynamics in [market]: who are the key players, what are the bases of competition, where is competitive intensity highest, and where do you see the most significant potential for disruption?'
02SWOT and strategic position analysis
For SWOT analysis, the AI is most useful for testing and challenging rather than generating. Share your draft SWOT with the AI and ask it to stress-test it.
'Here is our draft SWOT analysis: [paste SWOT]. What important factors have we missed? Are any of our stated strengths actually more qualified than we have presented? Are any of the threats more significant than they appear in this analysis?'
Also useful: 'Based on this SWOT analysis, what strategic options does this suggest? What would a well-regarded strategy firm advise we consider based on this analysis?'
For strategic position: 'Here is our current strategy and our SWOT analysis. Where is the strategic logic strongest and where are the gaps between our current position and what our strategy requires?'
03Scenario planning
Scenario planning is one of the strategic planning tasks where AI adds the most distinctive value, because building multiple internally coherent scenarios requires significant creative and analytical effort that AI handles well.
'Help me develop three strategic scenarios for [organisation type] over the next five years. The critical uncertainties in our environment are [key uncertainties]. For each scenario, describe: the world that has materialised (economic, regulatory, competitive), the implications for our business model, and the strategic choices that would be most effective in that scenario.'
Ask the AI to test your strategy against each scenario: 'How well does our current strategy perform in each of these three scenarios? Where is it most resilient and where is it most exposed?'
For strategic planning workshops, use AI to generate scenario parameters and discussion prompts in advance, then have human-led discussions that apply organisational judgement and contextual knowledge to the AI-generated frameworks.
04Strategic option evaluation
Once strategic options are identified, AI can help structure and evaluate them.
'Here are the three strategic options we are considering: [options]. For each, develop a brief analysis covering: strategic logic, key capabilities required, financial profile (investment, time to return, risk profile), key risks, and the two or three most critical questions that need to be answered before committing.'
For finalising the strategic plan document, AI can help with structure and articulation: 'Here are our strategic choices and the rationale for each: [bullet points]. Draft a strategy narrative that makes the logic clear, explains how each element supports the others, and creates a compelling case for the direction we have chosen.'
The most effective use of AI in strategic planning is as a structured thinking partner that compresses the mechanical research and drafting work, leaving more time for the genuinely human elements: the judgement calls, the debate about values and priorities, and the commitment to a direction.
Key Takeaways
- 1.AI compresses external environment analysis (PESTLE, competitive landscape) from days to hours; use AI outputs as a structured starting point that you supplement with your own intelligence.
- 2.For SWOT analysis, use AI to challenge and stress-test your draft rather than generate it: 'what have we missed, what have we overstated, what is more significant than it appears?'
- 3.Scenario planning is a high-value AI application: building three internally coherent scenarios with strategic implications and testing your strategy against each.
- 4.Use AI to evaluate strategic options across consistent criteria (strategic logic, capabilities required, financial profile, risks, critical questions) for structured comparison.
- 5.The most effective use of AI in strategic planning preserves human judgement for the value-creating elements: priorities, trade-offs, and strategic commitment.
References & Further Reading
- [1]McKinsey: Using AI in StrategyMcKinsey
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