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The AI race is becoming a test of strategy, not just software

October 2, 2026 Emily Chen Clock

The AI Race: A Test of Strategy, Not Just Software

The AI race is becoming a test of strategy, not just software. As artificial intelligence integrates deeper into everyday work, the competitive edge shifts from technological access to the quality of decisions surrounding its use.

AI's Impact on Productivity

AI has significantly enhanced productivity, with BCG’s 2026 AI at Work research revealing that 74% of frontline employees are regular AI users, up from 52% the previous year. Many save at least eight hours a week due to AI automation. However, only 42% of regular frontline users redirect this newfound time toward strategic tasks.

The Strategy Gap

While AI can accelerate tasks, organizations must have a defined strategy. Claudia Harvey emphasizes that technology alone cannot establish strategic goals, customer pursuit, problem investment, or commercial outcomes. Deloitte’s 2026 research supports this, showing that only 6% of leaders design human-AI interactions intentionally.

Human-AI Interactions and Governance

The human consequences of misaligned AI and strategy are evident. 65% of organizations believe their culture needs significant changes due to AI, yet 42% of workers report their organizations rarely evaluate AI's impact on people. Governance involves determining task changes, accountability, decision-making, and employee role comprehension as technology takes over more complex tasks.

A Transformational Approach

Harvey, through her work at On the Verge Transformation Consulting, advocates for a change management and strategy approach that prioritizes business objectives over technology. She advises organizations to:

  • Define goals
  • Measure progress
  • Identify areas for updates
  • Evaluate employee and customer impacts
  • Use the right tools and strategies to reverse-engineer desired outcomes

Effective communication and employee alignment are crucial throughout this process, setting a common destination and establishing measurable change management steps. Leaders should then determine the appropriateness of AI as a tool.

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