In a world of accelerating change and unprecedented complexity, business leaders are grappling with how to make decisions faster and with greater precision than ever before. For decades, a key framework to guide decision-making in high-stakes scenarios has been the OODA loop—Observe, Orient, Decide, and Act. Originally developed by U.S. Air Force Colonel John Boyd to aid fighter pilots, the OODA loop has since found applications in business strategy, crisis management, and more.
But as artificial intelligence (AI) becomes an ever more powerful force reshaping industries and competitive landscapes, even time-honored approaches need adaptation. At Knownwell, we believe the OODA loop must evolve to keep pace with the AI era, leading us to introduce a critical new step: Inspect.
This addition, forming what we now call the OODAI loop, acknowledges that AI-driven systems operate at a velocity and complexity beyond the human scale. To harness AI’s potential safely and effectively, inspection becomes essential.
Why the OODA Loop Needs an “Inspect” Phase
The traditional OODA loop emphasizes speed, particularly in high-pressure environments where split-second decisions can mean the difference between success and failure. In today’s AI-driven landscape, however, decisions aren’t just fast—they’re automated, iterative, and influenced by complex algorithms. This shift raises profound questions about accountability, transparency, and continuous improvement.
When AI gathers data (Observe) and contextualizes it (Orient), it often processes information faster and at a scale that humans alone cannot match. This is particularly evident in applications such as autonomous vehicles or AI-driven financial systems, where AI “decides” and “acts” almost instantaneously. But what happens when the decision-making process goes wrong or diverges from its intended purpose? How can businesses ensure that AI remains a force for good, continuously learning and aligning with human values? This is where Inspect comes in.
Inspect demands a deliberate pause to assess outcomes, validate AI’s performance, and incorporate human oversight. By building inspection into every cycle, organizations can make informed adjustments, ensure AI aligns with evolving objectives, and safeguard ethical standards.
OODAI in Practice: A Practical Example
Consider Tesla’s approach to autonomous driving. The company’s systems continuously gather data from sensors, cameras, and radar (Observe) and analyze it to understand road conditions and surrounding traffic (Orient). Decisions about speed, steering, and braking are made in real-time (Decide), and the car acts autonomously to execute these choices (Act). But Tesla’s innovation doesn’t end there. Data from each driving instance is continuously analyzed (Inspect) to improve algorithms, reduce errors, and evolve the vehicle’s capabilities.
This iterative inspection ensures that autonomous driving systems get safer and smarter with each cycle. Imagine applying this same rigor to other sectors—supply chain optimization, personalized healthcare, or customer service systems. Inspecting every decision and its outcomes enables continuous improvement, building trust and ensuring better outcomes over time.
Embedding Inspection into the Organizational DNA
The shift to an OODAI loop isn’t merely about adding a new step—it’s about a mindset change. AI is uniquely capable of enhancing the Observe and Orient phases, synthesizing massive data streams in ways that inform better decisions. However, companies must decide where humans stay in the loop, and inspection offers a crucial moment of reflection and oversight.
Leaders can deploy AI selectively, automating routine tasks or augmenting complex decisions while using inspection as a safeguard. By assigning roles intelligently—whether AI-driven or human-led—at each step of the loop, businesses can navigate risks more effectively and seize opportunities with agility.
For example, in customer service, AI might help observe customer behavior and sentiment and orient service teams toward likely resolutions. Yet, decision-making may require human intervention for nuanced scenarios, with inspection ensuring continuous learning based on outcomes.
Why Inspection Matters for AI Governance
The addition of Inspect also addresses the critical need for AI governance. It emphasizes accountability at every stage, ensuring AI systems adhere to ethical standards, avoid biases, and deliver intended results. By framing inspection as a cyclical step, companies encourage proactive reflection, adaptability, and transparency.
Looking Ahead: Applying the OODAI Loop in Your Organization
Reframing the OODA loop to include Inspect empowers organizations to harness AI’s speed and accuracy without sacrificing accountability. As your organization scales AI deployments, consider how inspection could transform each cycle of decision-making, increasing resilience, trust, and adaptability.
In the age of AI, businesses no longer have to choose between speed and control—they can have both by evolving how they think, act, and of course, inspect.
Interested in finding out more with a tangible download of the OODAI loop? Get your free downloadable copy of the OODAI loop at https://knownwell.com/oodai.
