Getting More from SWOT Analysis with AI

The origins of SWOT, that humble strategic planning tool, aren’t entirely clear. We know it’s been around since at least the 1960s, but don’t let that fool you into thinking it’s outdated, useless, or boring. Absolutely not.

In fact, in times of uncertainty, rapid change, and constant pressure on businesses to adapt, SWOT analysis is more relevant than ever. Moving a business forward requires thought, reflection, and intentional planning, and SWOT is one of the simplest and most effective tools to support that process.

I first encountered SWOT at college, then used it extensively throughout my degree, and I still apply it today in my own business. I regularly recommend it to clients when they’re reviewing goals and objectives or planning a new project. It’s particularly useful for new businesses, as it provides clarity around how the business currently operates and where it sits in the wider market.

At its core, SWOT is about understanding where you are now, so you can make informed decisions about where you want to go next. And the only cost involved is your time.

And SWOT isn't limited to reviewing the business as a whole; you can also focus in on certain aspects of the business by function, for example marketing, or a specific project or competitor, and even general problem-solving.

It works! It’s simple, super-effective, and practical so what more do you need in a strategic planning tool?

So what is a SWOT analysis?

I’m sure you’ve all heard of SWOT but it doesn’t hurt to go over the basics and give you a refresh. SWOT is an acronym for Strength, Weaknesses, Opportunities and Threats. It provides us with an opportunity to look at external opportunities and threats alongside internal strengths and weaknesses. Crucially, it helps you understand not just your organisation (or a part of it), but how it fits within the environment in which it operates.

This matters because many external factors are outside of our control. What is within our control is how we adapt internally. A good SWOT analysis helps ensure your strategy is grounded in reality and aligned with what’s actually happening around you.

Strengths (Internal): These are both the tangible (eg property and assets) and intangible strengths the business possesses. These include your people, your brand, customer loyalty, product lines, financial position, unique differentiators (USP), resources available and reputation. What do you do better than the competition? It’s important to remember that if you operate in a high spec product market, then producing a high spec product is not a strength, it’s the standard.

Weaknesses: What are our weaknesses? Sometimes it's difficult to accept these exist, or even identify them, but an effective SWOT requires you to be honest with yourself. They could include not enough product knowledge/experience, outdated processes, poor customer service, poor reputation, outdated machinery or website, or even a narrow product line. Looking at what your competitors do better than you can be particularly helpful here, as it often highlights blind spots you might otherwise miss.

Opportunities (external): When looking at opportunities in the external environment we are looking for ways that can help us gain competitive advantage and business growth, but we need to be able to spot them. Opportunities could come from new technology, changes in law, developments in the current market, seasonal marketing opportunities, mergers/partnering and lifestyle changes.

Opportunities are often subtle at first, which is why stepping back and taking a strategic view is so valuable.

Threats (external): Those opportunities identified above could also be threats especially if we don't identify them and the competition does. Changes in the law could have a negative impact on the business. Other threats include supply chain issues, market changes, changing consumer needs, technology, competitor price wars, debt and competition.

Where to Start?

You don't need any fancy app, just a large piece of paper and a pen, or you could of course use a laptop. Print or draw out the grid below. Set aside some time, limit potential distractions and go through each of the areas.

Ultimately, you want to reduce weaknesses, use strengths to offset threats, and position yourself to take advantage of opportunities. Be honest and realistic.

I also recommend stepping away once you’ve completed your first draft and revisiting it a few days later. Fresh perspective helps.

Some useful questions to guide your thinking include:

1. What do your customers love/dislike about your product or service?

2. What problems or complaints have been raised?

3. What are the biggest obstacles your business faces?

4. What do you do better than your competitors?

5. Why do customers cancel or not complete their purchases?

6. What is your USP?

7. How is your brand perceived?

From previous experience, the best results are often obtained when getting input from more than one person (i.e. yourself). Having different opinions and views is invaluable as people think differently and those different thoughts produce different ideas and insights. But if like me you run your own business and don’t have a team to work with, try and rope in your partner or perhaps a coach if you use one. Ideally, someone that has some understanding of your business. But you can also use AI and it's a useful way to review and challenge your thinking.

Leverage AI to Further Refine

Once you have completed your SWOT analysis you could run it past ChatGPT, Perplexity etc for further input (particularly good if you don't have anyone else to support you). But keep in mind that AI Chatbots don't know your market as well as you do, it doesn't have gut instinct and it doesn't know your real customers. Once you have completed your analysis take a photo of it and upload to ChatGPT or your preferred software.

A prompt might look like this (you can reuse it):

“Here is a completed SWOT analysis for my business.

Please:

– check whether each item is correctly categorised as internal or external

– highlight any weak, vague, or assumed points

– identify key themes or patterns across the SWOT

– suggest 3–5 strategic priorities based on the analysis

– note any risks I may be underestimating or opportunities I’m overlooking

Keep the feedback practical and grounded.”

After you’ve reviewed the AI SWOT you could then ask it to argue the opposite view as this provides you with a different standpoint.

To do this, pick:

• 1 strength per prompt

• your biggest perceived opportunity

Then we want to ask it - assume this strength/opportunity creates a hidden risk for the business. How could that happen, and what early warning signs should we watch for?

The prompt could look like:

A business lists this as a key strength: "Highly personalised service".

Now you ask: "Assume our highly personalised service is actually a liability. How could that be true"?

The results are quite interesting:

• It may rely too heavily on you personally → bottleneck risk

• It may be hard to scale without burnout

• Clients may expect instant availability

• Systems may be informal or undocumented

• New team members may struggle to replicate the experience

You can also do this for weaknesses:

“Small team / limited capacity”

The prompt could look like:

"Assume this weakness - small team/limited capacity is actually protecting the business. How could that be true?"

Answers:

• You’re more agile than larger competitors

• Decision-making is faster

• Overheads are lower

• Client relationships are deeper

• Risk exposure is smaller

The above answers could be part of your USP...

Remember AI isn’t a replacement for your own thinking. It works best when you have done the planning first and then use it as a sharp, slightly sceptical strategic partner.

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A successful SWOT analysis will:

• Reveal your competitive advantage (USP)

• Identify, and maximise opportunities

• Provide you with a better understanding of the competition

• Highlight areas where the business is vulnerable

• Reduce weaknesses

• Help you plan for the future ensuring contingencies are in place.

Have I convinced you? SWOT analysis is a simple strategic planning tool that works for organisations of any size. It helps you get clear on internal strengths and weaknesses, alongside the external opportunities and threats circling your business, whether that’s for a project, a business function, or competitor research.

It’s not a crystal ball and it won’t protect you from everything the outside world throws your way but it does help you understand where your business is solid, where it’s vulnerable, and any opportunites that might be lurking just out of sight.