Artificial Intelligence in Business Context: A qualitative study on how Artificial Intelligence influences business strategy adjustments

Abstract

Technological advancements are undoubtedly providing a significant support in increasing operational efficiency of organizations from any industry. Organizations often suffer to cope with the technological changes that they make, since it has become a regular process that happens at a speed that is quite tough to trace. In the new era of the digital world, one example of technology that is having tremendous attention to be the main driver of a disruptive change in the near future is Artificial Intelligence (AI). Nevertheless, research on how Artificial Intelligence shapes business context in terms of adjusting existing strategies lacks concentration. Hence, this research aims at investigating how organizations are changing their internal strategies in order to cope with the AI transformation. This has been achieved by conducting multiple case studies from three industries including telecommunication, automobile, and clothing. The findings show that organizations invest in AI when they see a great prospect of AI in terms of value creation. Unfortunately, the expected level of value cannot be created until AI gets matured to some extent. Furthermore, organizations need to align their existing strategies with AI strategy to diffuse the AI adoption properly within the organization which will eventually create value. Additionally, the findings show that the strategic changes are being performed in terms of staffing strategies, marketing strategies and strategies related to processing internal software to some extent. In terms of decision making with AI, the study suggests that a combination of humans and AI would facilitate making better decisions rather than by only humans or only AI.