How should we frame our 3-Year Picture™ in the V/TO® when AI technology is changing so fast that we cannot predict next year?

Question

Tyler Smith · Accepted Answer

Planning three years out can feel impossible when AI technology changes every month. However, the purpose of the 3-Year Picture™ in your V/TO® is not to predict specific software tools. It is to define what your business looks like operationally and financially, and what capabilities you need to dominate your market.

Instead of naming specific AI platforms, focus on capabilities. Describe how automation will impact your cost structure, your delivery times, and your headcount. For example, your 3-Year Picture™ might project a doubling of revenue with only a ten percent increase in headcount, driven by automated client onboarding and predictive service delivery.

To manage the uncertainty of fast-moving technology, think in terms of strategic real options. This framework helps you balance the flow costs of waiting against the lump-sum costs of upgrading your technology today. Do not rush to build expensive, custom AI systems if the technology is likely to be commoditized next year. Sometimes the best strategic option is to wait, build up your data foundation, and then execute when the tools are mature.

Your 3-Year Picture™ should reflect this flexibility. It must give your team a clear, inspiring destination while allowing your quarterly Rocks to dictate the specific technology choices as you learn more about what works.