Beyond Black Boxes: Designing and Testing Agentic AI Systems for Strategy

Existing work on AI and strategy examines the effects of general-purpose models, implicitly assuming that strategists will use whatever tools are available and that human-AI interaction is largely a matter of prompting, complacency, or aversion. Inspired by Herbert Simon’s work on system architecture, we instead adopt a design view in which purposeful AI system design and use—not mere access to generic models—can itself be a dynamic capability and a source of competitive advantage. Building on this perspective, we develop Aristotle, an agentic multiagent AI system for theory-based strategic decision making, and study how it shapes strategists’ reasoning, beliefs, and strategies compared with general AI assistance or no AI assistance. We document the design journey of Aristotle, highlighting design choice trade-offs in strategy framework, human-AI integration, and cost, and then implement a streamlined three-agent version suitable for experimental testing. In a randomized experiment with 976 managers comparing this agentic AI system, general AI (GPT-4o), and a human-only condition, we find that experienced managers achieve quality improvements without confidence inflation, whereas highly educated managers exhibit confidence gains without corresponding quality improvements. We establish user-system-problem fit as a core design dimension requiring alignment between architectural complexity and practitioner expertise. We abductively derive a five-dimensional taxonomy that maps the design space for agentic AI systems and a methodological roadmap that enable researchers and practitioners to experiment with, evaluate, and iteratively improve their AI system design choices. History: Accepted for the Special Issue: Can AI Do Strategy? Funding: A. Camuffo and A. Gambardella acknowledge support from the European Research Council (ERC) under the European Union’s Horizon 2020 Research and Innovation Programme [Grant 101021061]. Supplemental Material: The online appendix is available at https://doi.org/10.1287/stsc.2025.0432 .