Skip to main content

Faculty & Research

Close

Beware the Agentic Convergence Trap When Companies Use the Same AI Tools to Inform Strategy, Competitive Advantages Erode

Journal Article
When companies deploy AI systems trained on the same market data, optimizing similar objectives at machine speed, they risk falling into a “Agentic Convergence Trap”: independent systems arrive at identical decisions, eroding differentiation and sometimes triggering regulatory scrutiny. Recent cases in hospitality, grocery retail, and housing show how AI-driven pricing and promotion tools can unintentionally align competitors’ actions, not through coordination but through shared learning dynamics. Avoiding the trap requires treating strategic variation as a governance priority: keeping humans in key decisions, defining nonstandard objectives, feeding AI proprietary data, and tracking convergence alongside performance.
Faculty

Adjunct Professor of Global Leadership and Strategy