The rise of AI raises new questions about AI strategy. How should firms formulate and execute their digital or information technology (IT) strategies and business strategies embracing opportunities that AI present? Should firms formulate a separate AI strategy, or should AI strategy be part of their overarching digital strategy? In many ways, these questions are similar to those in the past when newer technologies came onto the horizon.3–6 In this article, we outline some fundamentals of strategy and discuss how organizations can harness AI for their advantage, illustrated with a few examples of business applications of AI. Then, we discuss how AI strategy relates to an overall digital or IT strategy and how to develop a digital strategy that also encompasses and supports the enterprise’s AI strategy. Finally, we examine strategy implications for corporate leaders, IT professionals, and researchers.