AI in Business

Products and strategic thinking are critical elements of a business. Technology has also become an inseparable element in the current business operations, as various technologies generally make operations more straightforward. Namaki finds that AI goes beyond making operations more manageable, to changing perspectives, and covering some business aspects (2019; 2020). While there are notable implications for both reactive and corrective types of AI, the future of AI is seemingly more exciting and might have a significant impact on businesses. AI might cover the functions of a business’s strategic dimensions in corporate sectors and change market paradigms that concern the relationship between people and products.

AI corporate reach might cover the functions of the strategic dimensions of a business. According to Namaki (2020), one impact of the AI is a change in perspective and corporate innovation approach. For instance, change from product development to learn customer preference and using customer data to develop a product. IBM demonstrates AI’s use in profiling customers on e-commerce to derive order management and engagement capabilities using GWYN Namaki (2019). Further, Namaki (2019) provides examples of evidence-based strategic operations changes for industries such as manufacturing, security, logistics, pharmaceuticals, and cyberspace. That is, AI covers strategic business issues concerning “product development, market development, supply chain, consumer behavior, information system,” among others, by becoming a compatible strategic behavior tool (Namaki, 2019, p.81). Hence, the traditional methods of strategic thinking ought to change in the advent of AI, as proposed by Manaki’s matrix. From a pre-AI phase, technologies will provide function fulfilling substitutes for the market, where AI strategic behavior addresses the market needs and compliances required (Namaki, 2019). Thus, AI will change the traditional business strategic thinking models to a technologically driven strategic behavioral thinking concept.

AI is changing the prevalent market paradigms that concern the relationship between people and products. Traditionally, products played a critical role in business success, as they fulfill customer needs and guide innovation through R&D and strategic thrust (Namaki, 2020). Namaki exemplifies that Windows brought about PC consumers’ executive needs, guided the R & D in the computing world, and became the leading strategic blueprint for Microsoft (2020, p.19). However, AI has brought a new exciting niche – product analysis, which is an excellent means of identifying determinants of situational strategic behavior (Namaki, 2019). In product analysis, a product function – which is the purpose of an object, serves as a fulfillment of missions. Such missions include technological, sociological, aesthetic, and economical, which help analyze the relationship between people and different production environments in the market (Namaki, 2020). Thus, Namaki (2020) finds that AI is shifting the paradigms from the market focus to function focus. Using product function, AI eliminates the need for customers to reveal what they want from a product and points out specific missions. According to Namaki (2020), paradigms around the role of the product in business will change essentially because AI-derived algorithms will majorly relace the present-day R & D outcomes to fulfill missions from AI-driven product function analysis.

To sum up, AI is expected to cover the functions of a business’s strategic dimensions in corporate sectors and change market paradigms that concern the relationship between people and products. AI has the potential to cover business issues concerning “product development, market development, supply chain, consumer behavior, information system,” among others, by becoming a compatible strategic behavior. Also, AI-derived algorithms will majorly relace the present-day R & D outcomes to fulfill missions from AI-driven product function analysis.

References

Namaki, M. (2019). How Companies are Applying AI to the Business Strategy Formulation. Scholedge International Journal Of Business Policy & Governance ISSN 2394-3351, 5(8), 77. doi: 10.19085/journal.sijbpg050801

Namaki, M. (2020). From Product to Function: The Strategic Artificial Intelligence Shift. International Journal Of Business Policy & Governance, 7(2), 19-24.