How AI capabilities enable business model innovation: Scaling AI through co-evolutionary processes and feedback loops

David Sjödin*, Vinit Parida, Maximilian Palmié, Joakim Wincent

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

1 Citation (Scopus)

Abstract

Artificial intelligence (AI) is predicted to radically transform the ways manufacturing firms create, deliver, and capture value. However, many manufacturers struggle to successfully assimilate AI capabilities into their business models and operations at scale. In this paper, we explore how manufacturing firms can develop AI capabilities and innovate their business models to scale AI in digital servitization. We present empirical insights from a case study of six leading manufacturers engaged in AI. The findings reveal three sets of critical AI capabilities: data pipeline, algorithm development, and AI democratization. To scale these capabilities, firms need to innovate their business models by focusing on agile customer co-creation, data-driven delivery operations, and scalable ecosystem integration. We combine these insights into a co-evolutionary framework for scaling AI through business model innovation underscoring the mechanisms and feedback loops. We offer insights into how manufacturers can scale AI, with important implications for management.

Original languageEnglish
Peer-reviewed scientific journalJournal of Business Research
Volume134
Pages (from-to)574-587
Number of pages14
ISSN0148-2963
DOIs
Publication statusPublished - 12.06.2021
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management
  • artificial intelligence
  • digital servitization
  • digital transformation
  • digitalization
  • business model innovation
  • platform

Areas of Strength and Areas of High Potential (AoS and AoHP)

  • AoHP: Strategic and entrepreneurial praxis

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