We want to launch a brand new service line next quarter, but we are terrified that a new generative AI model release could completely make it obsolete within months. How do we use AI Scenario Simulation during our strategic planning sessions to evaluate this product risk before investing our resources?

Question

Tyler Smith · Accepted Answer

To evaluate this risk, you must shift from static forecasting to dynamic planning. During your next strategic planning session, employ AI for Scenario Simulation to predict potential outcomes and competitive responses before you lock the new service line into your 1-Year Plan.

Feed your proposed service offering, pricing model, target market, and operational steps into an advanced AI model. Then, direct the AI to simulate several aggressive scenarios:

- A competitor launches a fully automated version of your service at one-tenth of the price.
- A major technological shift makes your primary deliverable obsolete overnight.
- Regulatory changes restrict the use of data necessary for your service.

Analyze how these simulated events would impact your revenue, customer retention, and team capacity. Use the simulation outputs to IDS® the potential vulnerabilities during your planning session.

This exercise will help you identify how to position your new offering as an indispensable complement to cheap technology, rather than a commodity that can be easily replaced. By stress-testing your strategy before you invest capital, you protect your margins and make highly informed, strategic decisions.