AI-driven Business Models for Sustainable Competitive Advantage

Artificial intelligence (AI) is increasingly embedded in business models and is significantly reshaping traditional views of competitive advantage in the digital economy. However, there are significant differences in organizational capabilities for using AI to gain a sustainable competitive advantage, even though it is highly integrated in business models. The research seeks to explore the role of AI-driven business models in achieving long-term competitive advantage, identify organizational capabilities for effective use of AI, evaluate dimensions of AI capabilities, and identify key barriers to AI utilization. The research was carried out through a quantitative approach with a structured questionnaire based on a five-point Likert scale. The questionnaire was distributed to 14 respondents from the banking sector, investment, aviation, energy, pharmaceutical, auditing, and holding sectors. The results show that AI-powered business models help businesses get ahead of the competition by making them more flexible, better at making decisions, and better at spotting new opportunities. Moreover, automation and data-driven insights are recognized as essential aspects of AI capabilities that have considerable effects on business performance. The findings further demonstrate that organizational dynamic capabilities are essential for harnessing AI to attain business objectives. The current research findings identify significant obstacles to the utilization of AI capabilities, including data quality, technological infrastructure, and uncertainty regarding the returns on AI investment. This study concludes that AI, unlike other technologies, is not merely a tool for business organizations; it possesses substantial implications for the sustainable attainment of competitive advantage. The research makes a big difference in the field of AI-driven business model innovation. It helps businesses use AI to get a long-term competitive edge in a changing business world.