AI Creates New Business Models

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Robert Koch

I write about AI, SEO, Tech, and Innovation. Led by curiosity, I stay ahead of AI advancements. I aim for clarity and understand the necessity of change, taking guidance from Shaw: 'Progress is impossible without change,' and living by Welch's words: 'Change before you have to'.

AI Business Models

According to the 2022 PwC AI Survey, over 35% of companies and business leaders are in favor of adopting new AI solutions. The survey also highlights the widespread adoption of AI and how it can help leaders transform business operations.

AI has the power to transform a business from within and help leaders develop new capabilities. Today, a wide range of AI tools help companies streamline their processes. But to harness the true power of artificial intelligence, organizations need to make radical changes.

Table of Contents

Follow the New Tide of AI

With the advent of AI, there is a dawn of a new era, and companies have the opportunity to create new markets. In the fourth industrial age, there is a fusion of AI, robotics, analytics, and other advanced technologies. As AI becomes a massive market, expect business dynamics to evolve.

Sure, the adoption of attractive AI business models will bring more challenges, but it will help organizations move forward in the right direction. For instance, AI paired with machine learning helps businesses solve complex problems. Once you understand AI’s future potential and transformative role, the next step is to run operations around a dedicated AI business model.

Without a solid AI business model, you won’t be able to extract the full value of an AI-based idea or technology. In fact, more and more companies now want to create value out of their AI technology. An impressive AI business model helps companies understand their customers’ changing needs and run operations without assumptions. Without an AI business model, even the most sophisticated and robust AI technology can fall apart.

Implementing New AI Business Models: Focus on Essential Elements

The next step is to explore some of the most essential elements for any company implementing a new AI business model. These are essential considerations that companies must consider to make sure they’re successful with this new approach to selling their products and services.

Growth Driver

The right AI business model can help your company determine potential revenue streams and extract value from the marketplace. At its core, the AI business model works as a growth driver. But it is imperative to “what” and “how” AI can provide you an opportunity.

For instance, it could be an opportunity to lower or raise prices that might be acceptable to customers. The success of your AI business model rests on whether or not you can use it as a growth driver and gain a competitive edge in the market. You can use artificial intelligence to test out various ownership models.

You can use AI algorithms to find the trends that attract the most customers. Using AI, you can test design and content ideas via an app and check performance parameters in real-time.


Datasets are important because they provide AI software with the information it needs to make decisions and perform actions. This is especially important in an AI business model, where data is a cost-saving measure. Without data, an AI program would have to reinvent the wheel every time it learns something new about its environment and what it needs to do in order for that learning process.

AI Training Data

Value Creation

AI is more than capable of helping business leaders create more value for their organizations and customers. Through AI, you better understand the cause-and-effect of various business elements and have a better shot at creating value.

However, you have to be specific about your functions to improve customer journeys and better communicate your brand identity. Value creation boils down to making the “right” business choices, and AI helps speed up the process of achieving goals.

Predictive Power

It is crucial to understand the predictive power of artificial intelligence. You can use a template to build your business model through AI. For instance, you can use AI to make accurate predictions and make your business strategy more practical.

Once your business strategy is informed, you can better spot product categories and market segments. The key is to be specific about your business model and ask questions to eliminate inconsistencies. Focus on specific ideas using AI to determine whether “A” or “B” is a better choice.

AI Business Models: What about Ethical Issues?

In the last few years, there have been many surveys and studies about the ethical conundrums of using artificial intelligence. Of course, when you’re using AI, the last thing you want to do is overlook human values and elements. AI provides you with an optimized judgment; you must make sense of that decision and whether it would work for your business model.

Most recently, businesses have been able to hit high-profit margins and achieve optimal performance due to AI. But these companies managed to navigate the challenges and constraints that come with AI. Throughout the development and value creation process, AI propels you to make your business models more innovative.

As a business leader, there is no need to settle on a redundant business model. To survive and thrive in a competitive business landscape, companies must be objective and unbiased in using AI to achieve growth rather than use it to micromanage internal performance actively. For instance, not long ago, Amazon had to cut out an AI recruiting solution that was biased and judgmental towards women.

Your goal should be to create clear boundaries and use emotional intelligence to communicate empathy with the workforce and customers. If you leverage AI to boost profits, consider the social impact beforehand. It is the best way to ensure the legitimacy of your business model for a long time.

Considerations to Opt for the “Right” AI Business Model

There is more than one thing you must consider before selecting an AI-based business model for your company. Think of your business model as a blueprint to generate high-profit margins, increase the revenue stream, and drive long-term growth.

From target audience to expenses, you need to consider various elements to lean towards the “right” AI business model. Even if you have multiple income sources, create a single business model, and integrate AI to create more value. For instance, Facebook allows its users to communicate with advertisers that work as a business model. Using AI, you can deliver targeted ads and increase your company’s organic traction.

Suppose your business model revolves around delivering and providing service to customers. In that case, you can use AI to find out the most suitable pricing by focusing on local income, population density, and other elements of your target audience. It is the most effective way to improve your revenue generation capability and provide added value to customers.

Here are the top considerations for adapting an AI-based business model:

Target Market

Once you have an excellent idea, ask yourself some questions before starting the project. For instance, find out who are you developing a specific product or service for? After all, different markets in different countries have high and low-priced services.

Focus on “your” target customers, and you can integrate AI into your business model to stand out from the competition. Remember, people tend to gravitate towards products and services that maintain consistency in the market.

So, develop a business model around AI to maintain long-term consistency across all your business operations. Using AI, you can ensure there is no compromise on product or service value. AI will help you avoid fraudulent activities, simplify payment drivers, and fix common issues.

Revenue Streams

Pairing an idea with AI technology is bound to bring more revenue for your business. In short, if you operate in a marketplace, it makes more sense to charge a fee. On the other hand, if you’re using a video-sharing platform, you can receive money from advertisers.

The most practical approach to select a revenue model for your business is to check out your close competitors and assess their revenue streams. For instance, Amazon is a great example – it has physical stores, online stores, AWS, and a dedicated subscription service.

Potential Customers

The success of your AI business plan depends a lot on how accurately you paint the picture of your customers. Create extensive customer profiles to understand their preferences and tastes better and determine whether they’ll use your new product or service.

You can also conduct market research to focus on the main problem and how you can provide a unique solution in the form of a product or service. Using AI, you can develop a solid pricing strategy that would make sense to customers.

Resources and Expenses

Consider all the resources you will need to run optimized business operations. Make sure you have enough resources to run seamless day-to-day operations. But move past the physical assets and consider intangible assets like intellectual property and data that can help improve your business model.

You don’t have to account for every single business action. Instead, consider the critical business activities to ensure proper workflow. And this can include providing service, employee training, and product development. If you want to make your AI business model work, calculate all the appropriate costs related to advertising, creating products, and maintaining relationships.


You’d be surprised how much your company’s values can depend on artificial intelligence. Start by finding what makes your business model different from others and how it impacts your products or services. Define clear values and ensure you can uphold those values along with your long-term business goals.

Understand the REAL Impact of AI on Business

Many companies want to leverage AI technology to increase efficiency, cut back operational costs, improve customer satisfaction, and generate more revenue. Using AI provides many benefits to businesses. But with great benefits comes great challenges.

Use smart AI technologies like machine learning and natural language processing to rejuvenate your products and operational processes. It is one of the best ways to improve your current business model. AI renders a significant impact on business operations. Implementing and integrating AI technology allows you to automate and optimize traditional processes and save valuable time and resources.

AI also improves your operational efficiencies and productivity standards. With the right AI business model, you will make more prompt and logical business decisions. Ai also helps you avoid human errors, get better customer insights, and personalize user experiences.

AI Business Model: It’s About Seamlessly Working Together

It has become clear that AI does not perform well on its own. While AI solutions are great at automating repetitive tasks and driving growth, they still need a personalized touch to bump up performance. And performance peaks when machines and humans work in tandem.

If you want to make the most out of artificial intelligence integrated into your business model, consider how you can develop multi-faceted AI capabilities rather than entirely replace human functions. Your business can leverage many AI opportunities. But understand that it takes willingness and broadmindedness to embrace new AI opportunities and tie them together with your business model.

Since artificial intelligence is still in its infancy, expect new changes and challenges on the horizon. And how fast you adapt to new changes determines the success of your AI business model. Instead of dwelling on AI limitations and risks – embrace what it can do for your business and how its integration can complement your automated operations and workforce.

Adapt a Strategic Approach

When it comes to choosing an AI business model for your business, assume that there is always room for growth and experiments. Review the market trends, check statistics, and see how you can change gears to drive more efficiency. Your objective should be to ensure your AI business model is scalable. Once you notice there is plenty of room to scale up, you can significantly improve your business operations.

Successful adoption of AI and integration of a robust business model is not a walk in the park. It takes a strategic approach to ensure all elements of the AI business model and integration work out. Part of your combined efforts should be to pay close attention to your competitors and continue to improve your business model.


Today, companies can make their current business models innovative and develop new AI capabilities. The idea is to scale up operations and digitalize the service model to drive more business growth. Many companies are struggling to integrate AI capabilities into their current business model.

FAQs on AI Business Model

How does AI transform business models?

AI can help businesses automate and speed up processes, making them more efficient. It can also be used to improve customer service by providing quick and accurate responses to customer queries. Additionally, AI can help businesses to better target and personalize marketing messages to customers.

What are AI business model innovations?

AI business model innovations are changes to the way businesses operate that have been enabled by artificial intelligence technology. These can include things like new ways of marketing or selling products, new ways of interacting with customers, or new ways of managing and analyzing data.

What is the best AI business model?

There is no one-size-fits-all answer to this question, as the best AI business model depends on the specific industry and applications. However, some of the most popular AI business models include predictive analytics, chatbots, and robotic process automation (RPA).