Existing Models of AI-Driven Business Strategy Formulation

The introduction of AI in business goes beyond just advanced technology; it’s changing how companies operate and interact. Let’s explore some key models of AI-driven business strategies:
  1. Automating Business Processes:
  2. What It Means: Using AI to perform routine tasks more efficiently and accurately than humans.
  3. Real-life Example: Self-checkout kiosks in supermarkets are a basic example. A larger scale example is Amazon’s warehouses, where AI-driven robots assist in picking and packing items, improving the shipping process.
  4. Paper Reference: Davenport & Ronanki, 2018 [11]
  5. Gaining Insight Through Data Analysis:
  6. What It Means: Analyzing vast amounts of data to find patterns and insights that guide business decisions.
  7. Real-life Example: Netflix’s recommendations are based on AI analyzing your viewing habits and comparing them with millions of others, suggesting shows and movies you might like.
  8. Paper Reference: Davenport & Ronanki, 2018 [11]
  9. Engaging with Customers and Employees:
  10. What It Means: Enhancing interactions between businesses and their stakeholders (customers, employees) to be more personalized and intuitive.
  11. Real-life Example: Chatbots on websites that offer help or assistance are AI-driven tools aimed at improving user experience.
  12. Paper Reference: Davenport & Ronanki, 2018 [11]
Implementing AI in business is more complex than it seems. It requires a balanced strategy that combines the right technological tools with trained personnel and optimized processes. It’s about harmonizing human and machine capabilities, strategic planning, and practical application.
TABLE 3: SNAPSHOT OF THE MULTI-DIMENSIONAL ROLE OF AI IN MODERN BUSINESS STRATEGY