Sena, V. and Nocker, M. (2021) AI and business models: the good, the bad and the ugly. Foundations and Trends® in Technology, Information and Operations Management, 14 (4). pp. 324-397. ISSN 1571-9545
Abstract
Over the last five years, several scholars from a range of disciplines have started to analyse how Artificial Intelligence (AI) affects businesses outcomes. This research effort has produced many predictions on the expected impact of automation on labour demand and equilibrium employment. However, most of the expected results are dependent on how businesses change their behaviour due to adopting AI. We argue that, as AI diffuses across the economy, changing behaviour is a necessary outcome for incumbents: the argument is that the diffusion of AI across an industry generates the conditions for a process of value migration from incumbents to new entrants (Helper et al. 2018); in these cases, the only mechanism available to incumbents to offset the negative impact of the migration process is by changing the architecture of their business, i.e., the business model. However, companies can choose from several AI-driven business models; their preference for one model is driven by many industry-level factors such as technical standards, the structure of the technology industry and the presence of an ethical framework for the use of AI. This monologue summarises the existing literature on business model innovation and AI; it then analyses the industry-level factors that may shape the business-level preference for specific business models. Finally, the monologue offers some suggestions for future research in the area.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2021 Vania Sena and Manuela Nocker. This is an author-produced version of a paper subsequently published in Foundations and Trends® in Technology, Information and Operations Management. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | E-Commerce and E-Business Models; Knowledge; innovation; technology |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 10 Jan 2022 17:40 |
Last Modified: | 10 Jan 2022 17:40 |
Status: | Published |
Publisher: | Now Publishers |
Refereed: | Yes |
Identification Number: | 10.1561/0200000100 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:182363 |