AI-Driven Business Model Innovation: Pioneering New Frontiers in Value Creation
Annabeth Aagaard, Christopher L. Tucci
Abstract
Abstract This chapter delves into the transformative impact of AI on business model innovation, exploring how it redefines value creation and how it impacts nine common components of business models. It offers an in-depth examination of AI's role as a dynamic catalyst, reshaping strategic thinking and operational approaches within contemporary business landscapes. By presenting an archetype model, it delineates the strategic pathways through which companies evolve as they embed AI into their business modeling, underscoring AI’s significant role in crafting novel value propositions, value creation, and redefining traditional business models. The analysis ventures beyond mere technological integration to highlight the imperative of adapting business strategies in the face of AI advancements, offering insights into leveraging AI for enduring competitive advantage. This discourse aims to equip scholars and practitioners with the acumen to navigate the complexities of AI in business, fostering innovation that resonates with the modern digital economy's demands, while fostering sustainable growth and innovation.