Emerging technology and business model innovation: The case of artificial intelligence

Artificial intelligence (AI) has been altering industries as evidenced by Airbnb, Uber and other companies that have embraced its use to implement innovative new business models. Yet we may not fully understand how this emerging and rapidly advancing technology influences business model innovation....

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Bibliographic Details
Published in:Journal of open innovation 2019-09, Vol.5 (3), p.1-13, Article 44
Main Authors: Lee, Jaehun, Suh, Taewon, Roy, Daniel, Baucus, Melissa S
Format: Article
Language:English
Subjects:
Algorithms
Artificial intelligence
Brain
Business competition
business model innovation
Business models
Case studies
case study
Deep learning
emerging technology
Explicit knowledge
Innovations
Machine learning
Market positioning
Natural language processing
Neural networks
New technology
Organizational change
Process planning
Search engines
Trends
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Summary:Artificial intelligence (AI) has been altering industries as evidenced by Airbnb, Uber and other companies that have embraced its use to implement innovative new business models. Yet we may not fully understand how this emerging and rapidly advancing technology influences business model innovation. While many companies are being made vulnerable to new competitors equipped with AI technology, this study attempts to focus on the proactive side of the use of AI technology to drive business model innovation. Describing AI technology as the catalyst of business model innovation, this study sheds light on contingent factors shaping business model innovation initiated by the emerging technology. This study first provides a brief overview of AI, current issues being tackled in developing AI and explains how it transforms business models. Our case study of two companies that innovated their business models using AI shows its potential impact. We also discuss how executives can create an innovative AI-based culture, which rephrases the process of AI-based business model innovation. Companies that successfully capitalize on AI can create disruptive innovation through their new business models and processes, enabling them to potentially transform the global competitive landscape.
ISSN:2199-8531
2199-8531
DOI:10.3390/joitmc5030044