Sep 3, 2025

Why Boards Must Accept the AI Premise Before They Can Play Offense

a close up of a plastic model of a human brain

It's No Longer Business as Usual

Every seismic shift in business history begins with denial.
Railroads dismissed automobiles. Publishers shrugged at the internet. Film studios laughed at streaming.

Each time, incumbents convinced themselves that “business as usual” would hold. Each time, they were wrong. And each time, value shifted to those who saw the change for what it was.

AI is the next inflection point. The difference now is speed. Business cycles that once took years now collapse into months. Competitive advantage is created, and destroyed, at a pace no traditional playbook can handle.

Until a board fully accepts that it is no longer business as usual, every “AI strategy” will be lipstick on the status quo.

Step One: Acceptance

Acceptance isn’t about enthusiasm for shiny tools. It’s about clarity.

AI reshapes the tempo of business. Product cycles compress. Customer expectations reset. Competitors redraw cost structures in real time.

If the board hasn’t accepted this reality, it will:

  • Approve strategies already outdated the day they’re signed.

  • Fund pilots that never scale beyond the press release.

  • Underestimate risks that move faster than governance cycles.

  • Miss opportunities while waiting for “certainty.”

The first responsibility of a board is to admit reality: business as usual is gone.

Step Two: Offense, Not Fat-Trimming

Once acceptance is in place, the board faces a choice: how to use AI.

Boards that haven’t accepted the premise take the easy path, incremental cost cutting. Automating tasks, squeezing expenses, polishing the bottom line. It looks good in the short term, but it’s finite. Cost cutting trims fat; it does not build muscle. Eventually, the gains run out, and the business is left exposed.

Worse, it does nothing to defend the company from competitors. Efficiency doesn’t protect market share. It doesn’t create differentiation. It simply makes you a slightly leaner target while rivals use AI to reinvent their business models.

Boards that have accepted the premise take the harder, better path, offense. They use AI to build strength and resilience:

  • Customer offense: Redefining value through personalization, speed, and experiences competitors can’t replicate.

  • Margin offense: Collapsing handoffs, accelerating revenue recognition, and reinvesting freed capacity into growth.

  • Valuation offense: Embedding AI into the operating model so buyers see durability and defensibility, not experimentation.

Offense builds muscle. It compounds over time. It doesn’t just lower costs—it expands capability, adaptability, and competitive distance.

The Mindset Break

This is the real mindset shift boards must make:

  • From certainty before actionaction that generates certainty.

  • From static five-year plansadaptive systems updated continuously.

  • From protect the modelreinvent the model.

Acceptance is the gate. Offense is the prize. Without the first, the second never happens.

The Call to Boards

The real boardroom question isn’t:
“What’s our AI strategy?”

It’s:
“Have we accepted why it is no longer business as usual?”

If the answer is yes, you are positioned to play offense, to use AI as a tool to build muscle, flexibility, and a truly defensible business.

If the answer is no, you’ll end up trimming fat. And when the gains are gone, you’ll be left standing leaner, but undefended, while the competitors who built muscle run straight past you.

© 2025 The AI Fix for Private Equity. All Rights Reserved.

A book by Mark Rogerson & Gary M Pearson