AI Outperforms Humans in Business Strategy: What It Means for Entrepreneurs

A recent study out of Texas McCombs, highlighted by Phys.org, has made a bold claim — and backed it up with data: AI isn’t just good at routine business tasks anymore. It’s getting better than us at strategy.

Researchers from Texas McCombs, the University of Michigan, and INSEAD tested AI’s ability to craft and evaluate business plans — the kind of work that’s long been considered too nuanced, too human, for machines. Turns out, it’s not.

AI as a Strategic Thinker

In one experiment, the research team used GPT-3.5 to write business plans based on actual startup proposals. These plans were then evaluated by seasoned investors and executives.

The results?

• The AI-written plans scored higher than human-written ones on innovation, viability, and overall quality.

• Evaluators were 5 percentage points more likely to accept these plans into a startup accelerator.

• They were 3 points more likely to want to invest or meet the (fictional) founder behind the AI-crafted pitch.

So yes — when it comes to planning, AI isn’t just keeping up. It’s pulling ahead in some cases.

AI as a Sharp Evaluator

The team also asked a tougher question: Can AI judge strategy as well as it creates it?

Using hundreds of real business plans from a top-tier startup competition, they had GPT assess the submissions. Then they compared its evaluations to those made by human judges.

What stood out: GPT’s judgments aligned more closely with the judges’ final consensus than the judges did with each other. It wasn’t just guessing. It spotted winning plans and predicted successful outcomes more reliably than most individual humans.

What This Means for Founders, Funders, and Operators

These aren’t just interesting stats. They signal a silent seismic shift in how entrepreneurs and future business owners will leverage the strategic nous of AI.

1. Faster, Sharper Decisions

Venture firms, accelerators, and grant programs can use AI to sort proposals more quickly — with less bias and more consistency. No more drowning in decks or waiting for the “right person” to weigh in.

2. Access Without the Overhead

As the study’s lead author Harsh Ketkar put it, this is basically “McKinsey in a box.” Small business owners now have access to strategic guidance that used to be locked behind consulting fees and enterprise budgets.

3. Better Thinking Partners

AI won’t replace your instinct — but it might challenge your blind spots. Acting like a kind of strategic sparring partner, it helps you spot patterns you might overlook and push beyond default thinking.

Strategic Planning Is Changing. Fast.

As AI tools become more integrated into how we plan and make decisions, the frameworks themselves will evolve. Think of it like the shift from gut-based investing to algorithmic trading on Wall Street. The tools didn’t eliminate human input — they reshaped the game.

And here’s the thing: people still matter. But the kind of value experts bring is shifting — from “being the smartest in the room” to “being the best at working with smart machines.”

How Prioriwise Fits In

At Prioriwise, we’re building for this new reality. Our platform acts like a strategic co-pilot — built specifically for small businesses. We help you:

• Set and track goals that stay connected to your mission.

• Understand what’s working (and what’s not) in real time.

• Turn high-level strategy into clear, practical actions.

• Adapt quickly when things shift — without losing your way.

Jija, our AI Business Partner doesn’t just analyze—it advises, surfacing patterns and outcomes that help you make better decisions, faster. It’s like having a strategist on call, without the rigmarole of process and procedures.

We believe small businesses deserve the same level of clarity, depth, and agility that big corporations take for granted. That’s what we’re here to offer.