AI + StrategyNovember 5, 20257 min read

AI Can't Fix a Broken Business Model

AI is a multiplier, not a savior.

Maresa Friedman

Fractional CSO · Strategy Solved

Every decade or so, a technology arrives and gets positioned as the solution to every business problem. Social media was going to make every brand unstoppable. ERP software was going to make every operation flawless. Outsourcing was going to make every company lean and infinitely scalable.

And now it's AI. And the promise is genuinely seductive — automate the slow parts, generate at scale, reduce headcount, move faster, analyze everything. AI can do remarkable things. I use it. I recommend it. I help clients implement it.

But I'm going to tell you the part that most of the AI evangelism skips, because I think you need to hear it before you spend another dollar on implementation: AI cannot fix a broken business model. It can only accelerate whatever is already happening. If what's already happening is broken, you now have faster access to the results of that brokenness.

A Multiplier Is Not a Savior

This is the most important framing shift in the entire AI conversation: AI is a multiplier, not a savior. Multipliers amplify. They don't create. They don't fix. They make more of whatever you give them.

Give AI a business with sharp positioning, a proven offer, an aligned team, and a clear sales process? It can be genuinely transformational. It accelerates content production, improves responsiveness, surfaces patterns in data at a scale humans can't match, and eliminates friction from repeatable work.

Give AI a business that's confused about its position, selling an offer with broken margins, and operating without strategic alignment? You can now produce more confused content faster. You can automate a sales process that doesn't convert and reach a larger audience that won't buy. You can analyze data with beautiful efficiency and still draw the wrong conclusions because the strategic framework you're analyzing through is broken.

The Three Layers AI Cannot Replace

Judgment

AI processes information. It does not make judgment calls in high-stakes, ambiguous contexts where the answer depends on values, culture, and priorities that are specific to your business and your moment. The decision to enter a new market, pivot an offer, exit a partnership, or restructure a leadership team — these require human judgment at its best. Companies that outsource judgment to AI will make more decisions faster with less accountability. That's not progress. That's risk operating at scale.

Positioning

Where you choose to compete is a strategic decision that requires understanding your specific strengths, your specific competitive landscape, and a willingness to make hard choices about what you are not. AI can research markets. It can analyze competitors. It can surface patterns. But the synthesis — the actual decision about where your company has the right to win — requires a human who knows the business from the inside.

Human Trust

At the highest levels of business — enterprise relationships, strategic partnerships, investor conversations, high-stakes negotiations — trust is built between people. AI can help you prepare for a conversation. It cannot be the relationship. The executive who reads a room, adapts in real time, understands what isn't being said, and makes a human connection at a critical moment is irreplaceable. This will be true for the foreseeable future, and anyone who tells you otherwise is selling something.

When to Implement AI

The right time to implement AI is after the strategic work is done. After you know what you're optimizing for. After the positioning is clear. After the offer has been tested and the sales process works. After the leadership team is aligned on direction.

In that context, AI is genuinely powerful. It helps you scale what works. It reduces the time cost of repeatable work so your people can invest in higher-judgment activities. It surfaces insights from data that would have taken a team of analysts months to produce.

There is a fundamental difference between technology in service of a clear strategy and technology deployed in hopes that it will produce the clarity that hasn't been built yet. One compounds. The other confuses faster.

The Inconvenient Truth About Great AI Implementation

The best AI implementations in business have one thing in common: smart humans who know what they're doing designed them. The prompts are precise because someone understood the objective with clarity. The workflows are effective because someone mapped the process intelligently before automating it.

AI rewards the clarity that good strategy produces. And it punishes the vagueness that strategic neglect creates. The companies that win with AI are not the ones that adopt it the fastest. They're the ones who did the foundational work first — and then used AI to scale what works.

FAQ

Can AI fix a broken business model?

No. AI amplifies what exists. A strong strategy gets stronger. A broken one produces faster, louder, more expensive confusion.

When should a company implement AI tools?

After the strategic work is done — when you know what you're optimizing for and have a proven process worth automating.

What can't AI replace in business?

Judgment in high-stakes ambiguous decisions. Strategic positioning that requires insider context. The human trust that underpins high-value relationships. Those things are yours to own.

About the Author

Maresa Friedman

Maresa Friedman is a Fractional Chief Strategy Officer, Fortune 100 advisor, and global keynote speaker. She has generated $165M+ in verified client revenue across 1,200+ global engagements. She works with founders, operators, and executive teams to build the commercial operating systems that make growth sustainable.