During our upcoming annual planning session, we want to address the threat of a competitor using AI to cut their prices in half. How do we structurally run a Scenario Simulation using AI tools to prepare our defensive strategy?

Question

Tyler Smith · Accepted Answer

To protect your business from aggressive, AI-enabled competitors, you must proactively stress-test your strategy before it is tested in the market. You can do this by running a Scenario Simulation during your annual planning session. Before the session, gather your leadership team and draft three distinct competitive threats. For example, assume a competitor slashes prices by fifty percent, or launches a fully automated self-service platform. Next, use a secure, enterprise AI tool as a strategic sparring partner. Input your current V/TO®, your Three Uniques, and your target market. Then, instruct the AI to simulate the competitive response of an aggressive rival using these disruptive models. Ask the tool to identify the exact vulnerabilities in your current business model and predict how your clients would react. This exercise will expose where your operations are brittle and where your value proposition is weak. Use these simulated outcomes to drive your IDS® session. The insights you gain will help you set realistic Rocks to build a more defensible market position, such as shifting your pricing model or bundling high-touch consulting with your automated deliverables.