Artificial Intelligence-induced Transformation of the Value Creation Paradigm in the Economy
DOI:
https://doi.org/10.15678/krem.18721Keywords:
paradigm, value creation, artificial intelligence, Industrial Revolution 4.0Abstract
Objective: The objective of the article is to determine how artificial intelligence (AI) influences and can influence changes in the value-creation model in the economy.
Research Design & Methods: The article is theoretical and conceptual, based on a literature review and the author’s knowledge and reflections.
Findings: The author formulates and verifies the hypothesis that AI gradually, consistently, and significantly increases enterprises’ potential for value creation.
Implications / Recommendations: Replacing people with robots will increase work efficiency, accelerate economic growth, and improve people’s quality of life. However, there is also the flip side. AI may cause mass unemployment and the polarisation of income within and between countries. AI-based cyberattacks may paralyse societies. Although the reality of AI becoming a general-purpose technology is quite distant, it is necessary not only to monitor and support its development but also to take actions to limit its potential adverse effects.
Contribution: The article comprehensively presents the implementation processes of various AI devices at individual stages of the value creation chain, i.e., supply, production, distribution and communication with customers, highlighting their positive effects as well as the threats. On this basis, it recommends actions to mitigate the potential adverse effects of AI implementation. It presents the significant cognitive value of the phenomenon, which will radically change not only the paradigm of value creation but also the functioning of societies as a whole.
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