The Role of Artificial Intelligence in Business Model Innovation

Abstract

Businesses are fundamentally changing because of AI, allowing for a greater focus on creativity. The chapter introduces advancements in AI like machine learning, predictive analytics, and natural language processing that help boost customer service, operational efficiencies and asset monetization opportunities. Key considerations will include personalized customer engagements, process efficiencies, optimizing resources and planning to set up new business models—subscription-based services/platform economies, etc. Emerging technologies like artificial intelligence have broader implications in e-commerce, finance, manufacturing—showing how firms use AI strategies to gain competitive advantage and foster business growth. In addition, the chapter addresses ethical considerations like bias, privacy as well as workforce implications and their role in ensuring responsible AI practices. AI can improve flexibility, realizing the highest level of value and maintaining competitive advantage.