AI doesn't just improve productivity and efficiency for businesses. The ability to create content, ideas, logic and autonomously solve problems, is poised to reconstruct how value is defined, delivered and captured. The outcome: The new AI fuel business model challenges long-standing business assumptions, blurs industry boundaries even further, and contributes to the large new value pools and growth opportunities that will emerge over the next decade or more.
Past technological shifts such as cloud, mobile and the Internet have also enabled new business models and rapid growth industries, but it is worth noting in the possibility that AI has the ability to infer, continuously learn, and interact with humans using natural languages to infer the economics of creating, customizing and scaling products and services. Often, the large language model underlying Genai allows companies to create additional output units more efficiently, and often at near-zero marginal costs, such as designing personalized products, responding to customer service, or designing digital products.
As a result, companies can generate customer value that is less constrained by production costs, including labor. Expanding the scope of product production, distribution and purchasing can lead to less operational complexity being introduced. Managing all types of capital (financial, physical assets, talent) cannot be done if it is no longer restricted by data bottlenecks. Instead, businesses can act on data at a rate generated for adaptive decisions.
The incredible pace of Genai's adoption (ChatGpt alone could close to nearly a billion users) and encouragement's business results show early technology promises. However, it remains to be seen how broad and deeply these new AI fuel business models will become. Some people are heavily influenced by the pace of AI adoption and are shaped by the degree of trust in technology, governance models, and the ability to validate, authenticate and validate the underlying data, transactions, and parties (human or AI). Nevertheless, as past technology transformations have shown, fast movers don't just get the edge. They reset their baseline for the customer experience and put pressure on the rest of the market that follows.
To help leaders seize these new opportunities and avoid being caught off guard, we will lay out nine new business models, divided into three broad categories. Scaling services, increasing product range and access, and rapidly revitalizing all kinds of capital as events unfold. Also, note that major business moves are likely to need to create and explore basic questions that organizations can ask to pivot quickly when the time is right.
