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15. AI Tools: Strategy

Assessment Statement

“The business unit employs AI Tools and Technologies to help develop strategies, build new business models, accelerate frugal innovation and product/service development, and support decision making to build competitive advantage.”

Interpretation

This item assesses the degree to which the business unit utilizes AI Tools: Strategy to develop strategies, explore new business models, drive innovation, support decision-making, and ultimately build competitive advantage in a dynamic business environment. AI here includes everything from predictive analytics to generative tools and machine learning algorithms.

This reflects:

  1. AI Utilization: Is AI actively used in business planning, modeling, and innovation?

  2. Strategic Application: Are AI insights driving competitive decisions?

  3. Innovation Enablement: Is AI helping unlock new value, faster and smarter?

Example: Clorox's Generative AI Transformation, Score: 5 – Strongly Agree

Clorox integrated generative AI as a foundational element of its strategy and product development, not merely as an add-on tool: AI Utilization: Launched a $580 million digital transformation (2021–2026) deploying AI across R&D, ideation, consumer insights, and marketing. Strategic Application: Used AI to refine advertising campaigns and generate product innovations like "Toilet Bomb" cleaner, supporting creative processes and efficiency. Innovation Enablement: AI-driven experimentation fueled faster, more cost-effective ad production while preserving jobs and increasing market relevance. Competitive Advantage: Leadership stressed that AI "serves as a tool best leveraged by workers themselves" and “boosted creative processes” without replacing human roles .

ReferenceWeise, K. (2025, July 4). How the owner of Hidden Valley Ranch learned to love AI. The Wall Street Journal. https://www.wsj.com/tech/ai/clorox-ai-hidden-valley-ranch-e997d3dc