AI Strategy
AI strategy is the plan for how an organization will use artificial intelligence to achieve specific business outcomes—and equally, what it will not use AI for. A real AI strategy answers concrete questions: which workflows get automated first, where human judgment stays in the loop, how you measure ROI, what infrastructure you need, and who owns the results. Most of what passes for AI strategy in 2025 is vendor selection dressed up as vision. Choosing between OpenAI and Anthropic is a procurement decision, not a strategy. Strategy is deciding that your competitive advantage depends on proprietary data assets and therefore you will invest in custom models over SaaS tools—or deciding the opposite and moving fast with off-the-shelf solutions because speed to market matters more than differentiation. The hard part is not identifying where AI could help. It is sequencing investments so early wins fund later bets.
Related terms:
Agentic Workflows
Agentic workflows are multi-step AI processes where the system autonomously plans, executes, and iterates tasks—researching, drafting, reviewing, and revising—based on each step’s results. While they streamline outcome-based workflows, errors can compound across steps, making clear checkpoints and guardrails essential.
Temperature
Temperature is a parameter controlling a language model’s randomness: at 0 it always picks the most probable next token for deterministic, reliable output, at 1 it samples more broadly for varied, creative results, and above 1 it becomes increasingly random. Choosing the right temperature (e.g., 0 for consistent data extraction or 0.7–0.9 for brainstorming) balances reliability and diversity.
Prompt Engineering
Prompt engineering involves designing and refining inputs—ranging from simple instructions to detailed system prompts with examples, constraints, personas, and chain-of-thought scaffolding—to elicit desired outputs from a language model. It’s the most accessible way to boost AI performance, requiring no training data or ML expertise, but prompts can be fragile, hard to version-control, and easy to overfit.