GenAI from a Business Model Innovation Perspective

(Published in Review of Managerial Science. https://link.springer.com/article/10.1007/s11846-023-00696-z)

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Summary

The paper titled "The GenAI is out of the bottle: generative artificial intelligence from a business model innovation perspective" discusses the impact of generative artificial intelligence (GAI) applications such as ChatGPT, Jasper, and DALL-E. These applications have accelerated AI technology due to their ease of use and performance. GAI allows for the creation of various types of content, including texts, images, audio, code, and videos. The study conducted a comprehensive review of academic and non-academic sources to analyze the phenomenon of GAI. The authors used an inductive approach to identify and analyze patterns in the sources. The paper also highlights the need for future research to analyze the upcoming business models in the field of GAI. Additionally, the paper acknowledges the value of real-world examples and practical applications of GAI in understanding its strengths and limitations.

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What are GAI implications for business model innovation?

The increasing phenomenon of General Artificial Intelligence (GAI) is expected to significantly impact business models across industries. GAI has the potential to drive innovation in three key areas: value creation, new proposition, and value capture.

In terms of value creation innovation, GAI enables new capabilities, technologies, partnerships, and processes. It reshapes information access, content creation, and business operations, leading to automation and potential restructuring. GAI also presents opportunities at the intersection of factual knowledge and creative thinking, allowing companies to identify and fill the sweet spot of innovation.

Additionally, GAI facilitates efficiency improvements in existing products and services, enhancing the lock-in effect for established corporations. Regarding new proposition innovation, GAI can lead to new offerings, markets, channels, and customer relationships. Personalized marketing campaigns and enhanced customer service are examples of how GAI can transform customer interactions and create new value propositions.

In terms of value capture innovation, GAI has the potential to disrupt traditional revenue and business models. It can enable incremental improvements and efficiency gains, as well as completely new revenue streams. The extent of GAI's influence on business model components varies across industries, from incremental changes to radical transformations.

Overall, GAI presents opportunities for businesses to innovate and adapt their business models to leverage the capabilities of artificial intelligence. However, further empirical research is needed to understand the measurable effects of GAI on businesses and its evolving impact over time.

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