Artificial Intelligence (AI)-Based Business Model Strategies for Competitive Advantage

Abstract

Artificial intelligence(AI) stands out as a game-changing force for competition in business. This chapter examines AI's role in reshaping business models, its strategic impact on businesses, and its contribution to competitive advantage. By integrating AI, firms transform their operations,customer interactions, and strategic decisions to increase their competitiveness. As data-driven decision-making becomes more critical, AI solutions increase the efficiency of businesses and improve customer experiences. This chapter discusses the benefits that the integration of AI into business models provides firms, such as operational efficiency, optimization of decision-making processes, and the promotion of innovation. Furthermore, the future long-term implications of AI-based business models were assessed concerning possible strategic opportunities, ethical issues, and legal responsibilities. The chapter provides a comprehensive review of the strategic advantages AI offers to businesses, demonstrating the potential of this technology to deliver a sustainable competitive advantage in business.