Our Thinking – Strategic Brand Insights – MistryX

AI Disruption: Why Brands Need a Strategic Reset

Written by Preetum Mistry | Apr 11, 2024 11:00:00 PM

Summary

When mid-market leaders face AI disruption, the reflex is to wait, run quiet pilots, and see. The pattern that follows: promises drift, trust thins. Treat AI as a reset in how you prove value, and pricing power and win rates rise — clear positions build confidence.



Watch The Video

In this video, Preetum Mistry (CEO & Managing Partner) explores how AI-driven shifts in customer expectations demand a strategic brand response to sustain growth.


→ Watch more videos in this playlist on YouTube

Our Perspective

What this means for leaders navigating growth, change or transformation in their organisation.

The Quiet Risk

A strong core business can feel like protection while AI noise settles. Yet the real shift is silent: expectations move, then pricing power and referrals soften. The clearest warning is that even one poor AI encounter can trigger brand switching; TechRadar, citing Conviva, reports that 70% of customers would change provider after a single bad AI service experience. That’s not a software issue. It’s a brand promise under new pressure.

What looks like tool evaluation becomes a slow leak of confidence. Sales cycles lengthen as buyers question your direction. Teams try pilots that don’t ladder to a clear story. In short, the brand stops directing the technology, and the market senses hesitation.

Reset The Centre

The strategic reset is to treat AI as a change in how value is experienced and proven, not a standalone project. Keep the core promise intact. Update the proof: speed, quality, and certainty. Most organisations we work with find that reframing AI as a shift in proof—how you demonstrate outcomes—creates alignment fast across product, sales and service.

Customer expectations have already normalised AI in service touchpoints; Zendesk finds 81% of consumers now see AI as a standard element of modern customer support. That expectation doesn’t mandate automation everywhere. It asks for clarity on where AI helps and where human expertise leads.

What To Measure

Track a few grounded signals and you’ll see movement within a quarter. Use them to decide where to adapt offers, and where to retire them before value erodes.

  • Rising discounts tied to “AI-enabled” competitors reframing timelines or effort.
  • More buyer questions about your AI stance than about outcomes or impact.
  • Pilot sprawl: multiple tools live, none linked to a clear brand story.
  • Referral rates dip as customers hesitate to recommend your approach to AI.

Decide Where AI Leads

Create simple rules that focus investment and prevent mixed signals. You’re designing confidence as much as capability.

  • Let AI lead in high-volume, low-risk interactions where speed matters most.
  • Keep humans in complex, high-stakes moments where judgement and nuance carry trust.
  • Prioritise data-rich workflows where AI can generate evidence customers recognise: faster answers, fewer errors, clearer next steps.

Signal With Proof

Make your stance unmistakable in the market. Build a proof portfolio that customers can feel: transparent model usage, audited quality baselines, and outcome guarantees anchored in your promise. Pair this with case stories that show when AI accelerates value and when people stay in charge.

Then test visibly but coherently. Small, well-framed experiments let you improve offers without confusing loyal customers. The organisations that reset around expectation, proof and responsible use will find their brand compounding trust as AI matures.

Sources:

Further Resources

  1. Aligning Your Brand with Reality: A Strategic Necessity
  2. Brand Relevance vs. Awareness: A Strategic Guide for Leaders
  3. Brand’s Role in Restructuring: A Strategic Anchor


No two brand journeys are the same — connect with us if you’d like to test where your next step might lead. Let’s talk.

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