Role of AI Strategy in Business Transformation
Academic Article
Overview
Overview
Abstract
As Artificial Intelligence (AI) is turning into a critical technology in business, some pioneer organizations and countries build AI strategy for adopting, advancing, and applying AI technology to create opportunities and values throughout the business activities (Joshi & Wade, 2020). Along with the strategies for developing AI, AI technology has been applied or designed to be applied in different organizational levels and various areas, such as leveraging strategy and optimizing measurement of key performance indicators in organization (Kiron & Schrage, 2019), enhancing the experience between brand owner and customers through intelligently processing vast amounts of data generated by customers (Dwivedi et al., 2021), and managing repetitive and routine knowledge work tasks (Dwivedi et al., 2021). These transitions of workforce from human-oriented tasks to AI-assisted tasks or AI-oriented tasks would inevitably change business model, organizational structure, and, in turn, change the value proposition of the organization (Wessel et al., 2021). In the last decades, many studies focused on addressing technical questions about developing or applying AI, there is a lack of study exploring the impact of AI strategy in the business transformation. As people in executive group interested in AI are rising and more and more AI elements have been incorporated in organizations’ strategy, we think it is necessary and time to fill the research gap. In this study, we focus on addressing three questions: (1) what is AI strategy? As against to other strategies such as IT strategy? (2) what are the types of AI strategies applied in organizations? (3) what is the impact of those AI strategies with respects to digital transformation and business transformation? Through reviewing literatures, reports, and cases related AI and AI strategy, we think this study will shed the light of impact of AI strategy in organizations’ business transformation and provide practical guideline for building AI strategy.
