Essay on the Impact of Artificial Intelligence on Innovation

1.0 Introduction

The artificial intelligence (AI) has changed the way industries operate. This alteration is evidenced by specific firms, such as Uber, Amazon, Airbnb, and Tesla, among others. Such companies have embraced AI utilization to apply innovative business models. However, there may be limited knowledge om how this technology impacts the business model innovation. Even though this technology is disruptive and renders other companies vulnerable to competitors implementing it, this research will then attempt to focus on the proactive impacts of technology in driving business model innovation. It is worth noting that global industries are being disrupted by the emergence of new technologies (Russell & Norvig, 2016). Well, Ai can be described as systems that are created by data utilization, analysis, and observations without requiring the programming process in order to perform these tasks. From this definition, it is explicit why every contemporary company tries to implement its use as a way of remaining relevant in the competitive industry. Furthermore, top executives of a company need to develop and maintain entrepreneurial skills, as well as innovative convictions using artificial intelligence while operating their organizations in order to remain competitive and succeed in running their businesses.

There is ongoing debate presently on how companies may preserve their position in a competitive market. Currently, the literature in this area focuses on external antecedents, which then is more likely to pressurize the firms to engage in the business model innovation. Well, this pressure can as well arise from technological disruptions, and therefore, it explains why most studies argue that the business innovation model is most likely to be influenced by the environment. Also, the companies may design their model based on emerging new technologies. Nonetheless, the researches assessing the direct effect of the emerging technologies are few, and even if they exist, their scope is commonly not exhaustive (Lu, Li, Chen, Kim, & Serikawa, 2018). So, more studies need to tackle this area so as to offer more multifaceted information elements of artificial intelligence technology to the model of business innovation. Notably, a comprehensive understanding of how firms, using AI, create value, as well as how they execute their activities, can aid in understanding the concepts of business model innovation, and its consequence. Explicitly, this research proposal considers that a business model as a set of independent activities, as well as active systems that span the boundaries of a company. Hence, this study, which will involve research on human resources, will further help to understand the concepts of business model innovation as initiated by artificial intelligence technology.

2.0 Rationale

2.1 Research Question

What are the impacts of artificial intelligence on innovation? This question seeks to find out the influence AI has on the business model innovation. As an emerging technology, AI can be considered as a catalyst for business model innovation, and therefore, this research will offer more information based on factors shaping the model that is introduced by the merging technology. It is worth noting that enterprises that capitalize on the AI can fashion a disruptive innovation to other relevant companies through using their new models and process, thus enabling them to change the global competitive landscape theoretically.

2.2 Research Objectives

• To find out the proactive impacts that AI has on driving the business model innovation
• To investigate current issues that are being tackled in AI development and how they affect the business model innovation
• To assess two case studies of two companies that are using AI in order to innovate their business model
• To discuss how managers can create an AI-based culture in their companies
• To find out the impacts AI has on the innovation in the companies

2.3 Hypothesis

The firms that capitalize on using artificial intelligence cannot generate a disruptive innovation via their new business models and practices, and this feature cannot result in a potential transformation of the global competitive setting. This null hypothesis creates an impression and ground for testing whether AI has an impact on innovation in the companies or not, and it examines the possibility of AI creating a competitive environment.

3.0 Literature Review

There has been improved research on artificial intelligence for the last two decades. It means that this study area has grown to be an essential area of focus. P