In enterprise AI adoption , two distinct strategies are emerging. The first is Automation for Efficiency . This applies AI to optimize existing workflows—an operational play focused on protecting current margins. The second is Augmentation for Differentiation . This uses AI to create new products, services, and capabilities that were previously out of reach. While the first strategy is rapidly becoming table stakes , its universal accessibility means it’s not a source of durable competitive advantage. This reveals the real strategic failure: It's not pursuing automation, but only pursuing automation while ignoring the transformative potential of augmentation .