Artificial intelligence and business models in the fourth industrial revolution

Onyeka Chrisanctus Ofodile 1, *, Adeoluwa Omoyemi Yekeen 2, Ngodoo Joy Sam-Bulya 3 and Chikezie PaulMikki Ewim 4

1 Sanctus Maris Concepts Ltd.
2 Independent Researcher, Clarksville, Tennesse, USA.
3 Independent Researcher, Abuja, Nigeria.
4 Independent Researcher, Lagos, Nigeria.
 
 
Review
Open Access Research Journal of Multidisciplinary Studies, 2022, 04(01), 117–130.
Article DOI: 10.53022/oarjms.2022.4.1.0091
Publication history: 
Received on 08 August 2022; revised on 23 September 2022; accepted on 26 September 2022
 
Abstract: 
The Fourth Industrial Revolution (4IR) represents a paradigm shift in technology, marked by the convergence of advanced technologies such as Artificial Intelligence (AI), the Internet of Things (IoT), and big data analytics. This revolution transforms traditional business models, fostering innovation and enhancing operational efficiency. AI plays a pivotal role in 4IR, enabling businesses to leverage data-driven insights for strategic decision-making. By automating processes and personalizing customer experiences, AI enhances productivity and competitiveness. This paper explores the impact of AI on business models within the context of 4IR. We analyze how AI-driven technologies reshape value creation, delivery, and capture mechanisms. The integration of AI into business models facilitates the transition from product-centric to service-oriented approaches, enabling companies to offer tailored solutions that meet evolving consumer demands. Furthermore, AI enhances predictive capabilities, allowing businesses to anticipate market trends and customer preferences, thereby driving innovation. The research identifies key sectors where AI is significantly influencing business models, including manufacturing, healthcare, and retail. In manufacturing, AI optimizes supply chain management and production processes, leading to reduced costs and improved product quality. In healthcare, AI supports diagnostics and personalized treatment plans, enhancing patient outcomes and operational efficiencies. In retail, AI-driven analytics enable businesses to refine marketing strategies and improve customer engagement. Despite the opportunities presented by AI, the paper also addresses the challenges and ethical considerations associated with its implementation. Issues such as data privacy, algorithmic bias, and the need for regulatory frameworks are crucial for ensuring responsible AI deployment.In conclusion, this paper highlights the transformative potential of AI in shaping business models in the 4IR. By embracing AI technologies, organizations can innovate and adapt to the rapidly changing business landscape, ultimately driving sustainable growth and competitive advantage.
 
Keywords: 
Artificial Intelligence; Business Models; Fourth Industrial Revolution; Data-Driven Insights; Operational Efficiency; Innovation; Predictive Capabilities; Ethical Considerations
 
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