The Real Competitive Advantage in AI Is Knowing Your Business - Harvard Business Review

The Real Competitive Advantage in AI Is Knowing Your Business

SPONSOR CONTENT FROM ARIS

October 26, 2026

By Guillaume Bacuvier

As AI models become exponentially more capable, AI agents are taking on increasingly complex tasks, and businesses are investing heavily in the promise of greater efficiencies, productivity, and performance. Yet why are so many organizations still struggling to translate these advances into measurable business value?

The answer has less to do with AI than with how well agents understand the businesses they serve. In short, enterprise AI has a context problem, and solving it will be one of the defining competitive advantages over the next 12 to 18 months.

AI Ambition vs. Operational Reality

Research conducted by The Hackett Group in collaboration with ARIS, surveying more than 200 senior executives across the Global 2000, reveals a striking disconnect. While 86% of those surveyed recognize that AI agents need process context to operate effectively, only 22% report that agents have comprehensive, real-time visibility across end-to-end business processes.

Many companies are asking agents to execute work inside organizations without giving the agents the full picture of how the business operates. An agent might analyze information, recommend an action, or complete a task, but does it understand which systems are involved, who can authorize a decision, where exceptions occur, and what happens downstream? Without that knowledge, we risk simply automating complexity.

Intelligence Does Not Mean Understanding

Consider an agent resolving a customer complaint. The agent may have access to transaction histories and company policies, but resolving the complaint might require involving finance, operations, compliance, and customer service. Without understanding the interrelationships between these areas, the agent's recommendations might be accurate but ultimately ineffective or even counterproductive.

Ultimately, the real competitive advantage in AI lies in knowing your business inside and out. This includes not just the data and systems you use, but the people, processes, and context that drive your organization. By empowering AI agents with this knowledge, you can unlock the full potential of these technologies and drive real business value.

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