The AI Transformation? Unpacking the Impact of AI on Incumbent Business Models
Type
conference paper
Date Issued
2024
Author(s)
Abstract
Incumbent firms feel pressured to incorporate artificial intelligence (AI) in their business model (BM) to innovate and stay competitive. While transforming the BM with digital technologies is challenging, AI adds complexity through its countless applications and incomprehensible nature. Unraveling this complexity, we develop a taxonomy to describe and analyze how AI impacts incumbent BMs. The taxonomy builds on extant literature and the analysis of 46 empirical cases. Our findings reveal AI's varying roles in enhancing and transforming offerings, key operations, and financial logic. In addition, the taxonomy highlights different ways incumbents include AI capabilities and data as key enablers of the resulting BM. Despite the hype around AI, we critically reflect that most of AI's impact corresponds to well-known digital BM concepts (e.g., personalization). However, AI technology's progress might intensify the effectiveness of those BMs and spur novel opportunities within the known digital BM space.
Language
English (United States)
Keywords
Artificial Intelligence
Business Model
Digital Transformation
Incumbent Firms
HSG Classification
contribution to scientific community
Refereed
Yes
Event Title
European Conference on Information Systems
Event Location
Paphos, Cyprus
Subject(s)
Division(s)
File(s)![Thumbnail Image]()
Name
Weber et al._2024 ECIS.pdf
Size
280.67 KB
Format
Adobe PDF
Checksum (MD5)
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