Competitive Dynamics of Artificial Intelligence Economy: The Wicked Problem of Cognitive Competition

Al NAQVI

Abstract


Abstract. The competitive dynamics of the early 21st century competition are being reshaped. Much has changed in recent years as the rise of artificial intelligence is emerging as a powerful force. Less understood, but overwhelmingly felt, the change is shattering the traditional vertical boundaries. With tech firms now encroaching the traditional verticals, the need for strategic realignment is apparent. Non-tech firms are responding with acquiring tech firms. Tech firms are responding with trespassing into the non-tech domains. This creates a wicked problem for traditional non-tech firms: traditional sellers of technology are now becoming fierce competitors andtraditional non-tech firms must adapt to this new reality by developing technology of their own. This paper adds to the literature in various ways. First, the paper presents a model that captures the unique properties of artificial intelligence competition. Second, the paper argues that to stay competitive non-tech firms would need to acquire multidisciplinary innovation capability as well as embrace high-performance innovation culture.

Keywords. Artificial intelligence, Cognitive competition, Business strategy, Autonomous agents.

JEL. O00, O30, M00, M10, L00, L10.


Keywords


Artificial intelligence,;Cognitive competition; Business strategy; Autonomous agents.

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DOI: http://dx.doi.org/10.1453/jel.v4i2.1319

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