Businesses must choose between evolution and reinvention in the age of AI

Around mid-2025, a significant shift in business operations was observed as leaders grappled with the decision to either incorporate artificial intelligence (AI) into existing processes or completely reinvent their operational frameworks. This pivotal inflection point has prompted executives to consider the long-term consequences of both paths. The concept of reinvention emerged as daunting yet critical, as many leaders struggled to envision how transformation could manifest within their organizations. They have had to confront the urgency of recognizing potential changes to processes or functions that could determine their competitiveness in a rapidly evolving marketplace. As conversations unfolded, it was clear that organizations needed to anticipate the specific pathways their evolution could take by asking essential questions, such as what the new business model would entail, and identifying trends suggesting an industry shift. The notion of development was emphasized, with a distinction drawn between evolution—considered a slow fade in competitiveness—and full reinvention, which posed an existential threat to company viability. Focusing on customer-facing functions was noted to be particularly critical, as failure to adapt could lead to catastrophic business consequences. In evaluating the impacts of both paths, leaders were encouraged to engage in scenario planning, developing both evolutionary and revolutionary strategies in parallel. This approach allowed organizations to assess which strategic direction best aligned with their overarching goals. In this context, decision-makers were faced with the crucial question of whether their slow-paced evolution might ultimately lead towards necessary reinvention while evaluating the viability of maintaining competitiveness over time. The landscape of business operation was broadly understood to be transforming due to AI technology, prompting organizations to reflect critically on how to integrate AI into their workflows in ways that could strengthen their position. The consensus among industry leaders is that those who choose to evolve by merely adding to existing processes may end up at risk of gradual decline, while those who dare to reinvent may harness the most substantial transformative potential. Thus, the future of many businesses hinges on the choices they make during this critical juncture in operational strategy.