Abstract
Technical advancements within the subject of artificial intelligence (AI) leads towards development of human-like machines, able to operate autonomously and mimic our cognitive behavior. The progress and interest among managers, academics and the public has created a hype among many industries, and many firms are investing heavily to capitalize on the technology through business model innovation. However, managers are left with little support from academia when aiming to implement AI in their firm’s operations, which leads to an increased risk of project failure and unwanted results. This paper aims to provide a deeper understanding of AI and how it can be used as a catalyst for business model innovation. Due to the increasing range and variety of the available published material, a literature review has been performed to gather current knowledge within AI business model innovation. The results are presented in a roadmap to guide the implementation of AI to firm’s operations. Our presented findings suggest four steps when implementing AI: (1) understand AI and organizational capabilities needed for digital transformation; (2) understand current BM, potential for BMI, and business ecosystem role; (3) develop and refine capabilities needed to implement AI; and (4) reach organizational acceptance and develop internal competencies.
Highlights
Disruptive innovations, such as artificial intelligence (AI), are changing the rules of competition within industries all over the globe
The four steps are framed as: (1) understand AI and organizational capabilities needed for digital transformation; (2) understand current business model (BM), potential for business model innovation (BMI), and business ecosystem role; (3) develop and refine capabilities needed to implement AI; and (4) reach organizational acceptance and develop internal competencies
The key takeaways are defined as a need to: (1) understand AI and organizational capabilities needed for digital transformation; (2) understand current BM, potential for BMI, and business ecosystem role; (3) develop and refine capabilities needed to implement AI; and (4) reach organizational acceptance and develop internal competencies
Summary
Disruptive innovations, such as artificial intelligence (AI), are changing the rules of competition within industries all over the globe. Opportunities associated with AI are considered to be the most important technological development, with regards to its enormous potential for adding value and competitive advantage [1]. AI can be described as intelligent systems created to use data, analysis, and observations to perform certain tasks without needing to be programmed to do so [2]. The potential is derived from opportunities to automate decision making processes through human-like reasoning—which has created a hype among many industries and firms. As described by O’Leary [4], AI often create the foundation for decision support through valuable insights and results, collected from large and complex data sets and compressed into a manageable scale
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