Why AI demands a new lens on transformation
When most organisations talk about AI, the conversation tends to focus on productivity, efficiency, and cost savings. Faster processes. Cheaper operations. Smarter tools.
But as strategist and bestselling author Sangeet Paul Choudary explains in his latest book Reshuffle – and in our latest episode of Transformation 2.0® – that’s only the surface.
The real shift?
AI is not just a tool for task automation. It’s a coordination technology that reshapes how entire industries compete, how organisations are structured, and which jobs and capabilities matter most.
What’s broken in today’s AI conversations
Too many leaders frame AI as a bolt-on upgrade. But this mindset misses the systemic shifts already underway:
- Commoditisation of old advantages – If your edge was based on talent alone, AI can erode that.
- Focusing only on automation – It’s not just about faster tasks, it’s about reimagining workflows and industries.
- Overlooking vertical integration – Winners like Tesla or BYD succeed by integrating AI, energy, and data – not outsourcing them.
- Ignoring ecosystem shifts – Strategy is no longer just “where do you play and how do you win” – it’s “how do you position when industry boundaries are fluid.”
What AI-native leaders do differently
From automotive to healthcare to even fast fashion, AI is creating new strategic battlegrounds. Leaders who thrive will:
- Reframe AI as a system shift
Think shipping containers in trade or barcodes in retail – AI is changing the rules of coordination, not just efficiency. - Redefine competition and advantage
Yesterday’s moats (e.g., brand, talent, distribution) can be eroded. New advantages emerge from speed, data, and integration. - Look beyond the task level
The real impact of AI is at the industry and ecosystem level, not just on individual jobs. - Design AI-native business models
Don’t bolt AI onto legacy structures. Rethink your value chain from the ground up. - Balance exploration and exploitation
Leaders must constantly scan for transient advantages, then fold them into durable long-term strengths.
Where executives often get stuck
Even senior transformation leaders fall into common traps:
- Treating AI adoption as a tick-box exercise rather than a reinvention of business models
- Clinging to legacy positions instead of asking whether value has moved elsewhere
- Over-investing in efficiency plays while under-investing in ecosystem strategy
- Expecting jobs to change only at the task level, rather than recognising that entire industries are being rewired
How to lead transformation in the reshuffle era
If you’re navigating AI-driven change, here’s where to focus:
- Audit your strategic positioning – Does it still hold in an AI-shaped economy?
- Invest in vertical integration where it matters – Own the core inputs and capabilities that are evolving fastest.
- Rethink the role of coordination – AI reduces the tax of meetings, documentation, and bureaucracy.
- Prioritise identity, not just tools – Ask: who are we in this new ecosystem? Not just: what AI are we using?
- Support your people to adapt – Jobs will evolve not because of automation alone, but because industries and competitive dynamics are shifting.
Conclusion
AI isn’t just another efficiency upgrade. It’s a system-level reshuffle – redistributing value, reshaping industries, and redefining the very structure of organisations.
The winners won’t be those who adopt tools the fastest.
They’ll be those who reimagine their business models, reposition in fluid ecosystems, and use AI as an engine of coordination, not just automation.
🎧 Listen to Episode 13 of Transformation 2.0® with Sangeet Paul Choudary to explore how to lead in the reshuffle era – and how to turn AI disruption into long-term advantage.
