---
id: "action-reallocate-inorganic-budget"
type: "action-item"
source_timestamps: ["§ Testing AI as a Growth Engine"]
tags: ["budgeting", "capital-allocation"]
related: ["concept-organic-vs-inorganic-growth", "claim-growth-value-multiplier", "concept-multiple-expansion"]
action: "Shift spending from expensive purchased leads to AI-optimized organic direct marketing."
outcome: "A jump in organic growth rate (e.g., from 3% to 7%) that more than doubles firm value."
speakers: ["Shlomo Benartzi", "Randall Long", "Stefano Puntoni"]
sources: ["spine"]
sourceVaultSlug: "hbr-seg-spine"
originDay: 1
articleStem: "hbr-tier1-04-ai-for-growth"
sourceUrl: "https://hbr.org/2026/06/companies-are-using-ai-for-efficiency-they-should-use-it-to-grow"
sourceTitle: "Companies Are Using AI for Efficiency. They Should Use It to Grow."
---
# Reallocate Budget from Inorganic to Organic Channels

**Do:** Once AI-driven direct marketing (or another organic channel) is proven effective, **redirect capital from expensive, lower-performing inorganic channels** (e.g., purchased leads from custodians) into the newly optimized organic capabilities to compound growth rates.

**Why:** Exploits the [[concept-organic-vs-inorganic-growth]] asymmetry; the math is [[claim-growth-value-multiplier]].

**Outcome:** A jump in organic growth rate (e.g., 3%→7%) that more than doubles firm value via [[concept-multiple-expansion]].