AI and Business Innovation: Analyzing Disruptive Effects on Industry Dynamics and Competitive Strategies

• Published in: 2024 International Conference on Knowledge Engineering and Communication Systems (ICKECS) Vol. 1; pp. 1 - 5
• Main Author: Abuzaid, Ahmad Nasser
• Format: Conference Proceeding
• Language: English
• Published: IEEE 18-04-2024
• Subjects: Artificial Intelligence (AI); Business Innovation; Competitive Strategies; Disruptive Effects; Industries; Industry Dynamics; Knowledge engineering; Leadership; Navigation; Statistical analysis; Surveys; Technological innovation
• DOI: 10.1109/ICKECS61492.2024.10617266

The relentless evolution of Artificial Intelligence (AI) has emerged as a transformative force reshaping the landscape of business innovation. This paper investigates the intricate interplay between AI, industry dynamics, and competitive strategies, aiming to decipher the disruptive effects and offer actionable insights for organizations navigating this paradigm shift. Through a comprehensive literature survey, we establish a robust foundation, delving into the historical context of AI adoption and its current implications on industry structures. Building upon this, we propose a novel analytical framework that encapsulates key dimensions-technological advancements, organizational readiness, and market dynamics-to comprehensively assess the transformative potential of AI across diverse industries. Employing a mixed-methods methodology, incorporating qualitative case studies and quantitative analysis, we empirically validate our framework. The study culminates in the presentation of an implementation model, guiding organizations in strategically integrating AI into existing processes. Our results illuminate the varying degrees of AI adoption, offering nuanced insights into its impact on innovation and competitiveness. This research contributes significantly to the discourse on AI-driven business innovation, providing practical implications for organizations seeking to navigate the complex terrain of AI integration. In conclusion, we advocate for strategic alignment and continuous adaptation as imperative for organizations to harness the full potential of AI in reshaping industry dynamics and competitive strategies.