Generative artificial intelligence and evaluating strategic decisions

Abstract Research Summary Strategic decisions are uncertain and often irreversible. Hence, predicting the value of alternatives is important for strategic decision making. We investigate the use of generative artificial intelligence (AI) in evaluating strategic alternatives using business models generated by AI (study 1) or submitted to a competition (study 2). Each study uses a sample of 60 business models and examines agreement in business model rankings made by large language models (LLMs) and those by human experts. We consider multiple LLMs, assumed LLM roles, and prompts. We find that generative AI often produces evaluations that are inconsistent and biased. However, when aggregating evaluations, AI…