Intl Conference on Economics, Finance & Business, Paris

AI-BASED BUSINESS MODELS: LEVERAGING ARTIFICIAL INTELLIGENCE FOR ORGANIZATIONAL GROWTH

JULIA TAFERNER

Abstract:

This research paper addresses the use of artificial intelligence (AI) in startup ecosystems, focusing on the impact on growth strategies as well as clarifying expansion opportunities and barriers. Utilizing a qualitative methodology, the study conducts an in-depth analysis of diverse startup scenarios to unravel the complexities of AI integration. It categorically differentiates between 'purist' and 'pragmatist' paradigms of AI application. The empirical results of this investigation underscore the central role of AI in fostering sustainable corporate advancement. Specifically, AI is found to catalyze growth opportunities, with a significant increase in productivity and operational efficiency, while providing better opportunities to secure financing through private equity and public funding mechanisms. However, the advantageous impacts of AI are moderated by several challenges, most notably the substantial resource allocation required for its implementation. This contribution is significant to the scholarly discourse by articulating the distinct methodologies of 'purist' versus 'pragmatist' AI implementation in the context of startups, providing a holistic perspective on the ensuing opportunities for growth and the associated challenges. This nuanced exploration extends the existing academic discourse by shedding light on the strategic incorporation of AI within startup environments. However, the applicability of the study's conclusions is acknowledged to be confined to certain startup settings, suggesting a potential limitation in their generalizability across broader business landscapes. The study points a way forward for future research to assess the relevance of these insights in varied organizational contexts. From a practical perspective, the findings from this research endeavor can serve as a strategic guide for startups considering the integration of AI, enabling a calibrated approach to leveraging growth opportunities while navigating the attendant challenges. Furthermore, this study highlights the transformative impact of AI on venture growth strategies, implies extensive implications for economic proliferation and job creation within the technological sector.

Keywords: Artificial Intelligence (AI); Startup Ecosystems; Growth Strategies