Re-architecting the firm for increased value: How business models are adapting to the new AI environment

Gozde Turktarhan, University of South FloridaFollow
David S. Aleong, Delaware State UniversityFollow
Chandra Aleong, Delaware State UniversityFollow

Abstract

This paper is an examination of how technology, specifically artificial intelligence (AI), brings about changes in business models, with corresponding impacts on the fields of economics and business. Concepts such as value creation and competitive advantage have cascading effects on organizational culture and the functional framework of a firm. Data creation, management, and curation using media platforms enable enhanced scalability and logistics management such that the firm can be re-architected around a digital core. Organizational structure with functions such as marketing and human resource management are integral links in the automated value network anticipating and responding to customers’ needs while providing increasing marginal rates of return to the firm. The thematic analysis used as a methodological research tool yielded examples of companies that have embraced AI platforms and this paper describes the tremendous growth these companies are experiencing. This paper critically assessed and highlighted the enormous benefits of the new business entity due to AI. There are limitations to algorithms based on historical data such as the perpetuation of bias, loss of privacy, and anti-competitive practices. The implications described include how to harness the potential benefits of technology while mitigating the drawbacks, such as the rise in the anti-competitive dominance of oligopolistic players.

Keywords

AI platforms, competitive advantage, value creation, organizational culture, bias, anti-competitiveness

Chinese Abstract

重新构建公司以增加价值:商业模式如何适应新的人工智能环境

本文研究了技术，尤其是人工智能，如何带来商业模式的变革，并对经济学和商业领域产生相应影响进行了探讨。价值创造和竞争优势等概念对组织文化和企业的职能框架产生了瀑布效应。利用媒体平台进行数据创造、管理和策划增强了可扩展性和物流管理，从而使企业可以围绕数字核心重新构建。具有市场营销和人力资源管理等功能的组织结构是自动化价值网络中不可或缺的环节，在预测和响应客户需求的同时，为企业提供了递增的边际收益。本文使用主题分析作为研究工具，分析了已经采用人工智能平台的公司，并描述了这些公司正在经历的巨大增长。本文批判性地评估并强调了人工智能给新商业实体带来的巨大好处。本文指出，历史数据的算法也存在一些局限性，例如偏见的持续存在、隐私的丧失和反竞争行为。本文也就如何利用科技的潜在好处同时减轻其弊端，如寡头企业在反竞争垄断等方面提供了建议。

关键词：人工智能平台、竞争优势、价值创造、组织文化、偏见、反竞争

ORCID Identifiers

Gozde Turktarhan: https://orcid.org/0000-0003-4568-244X

David S. Aleong: https://orcid.org/0000-0003-1229-6366

Chandra Aleong: https://orcid.org/0000-0002-8563-4023

DOI

10.5038/2640-6489.7.1.1154

Recommended Citation

Turktarhan, G., Aleong, D. S., & Aleong, C. (2022). Re-architecting the firm for increased value: How business models are adapting to the new AI environment. Journal of Global Business Insights, 7(1), 33-49. https://www.doi.org/10.5038/2640-6489.7.1.1154