January 30, 2024
A.I – Poised to disrupt Industries, Business Models, Customer Value Paradigms.

A.I reshapes industries: personalized solutions, strategic partnerships, cost innovation, redefined values, and disruptive potential.

Really Great article from HBR - clearly articulates specific scenarios which could drive business model innovation by creating new value paradigms, across different industry segments. Added a few more industry specific examples below, which I believe are relevant for each of the 6 scenarios.

Gains Through Granularity

Retail: Can A.I enable retailers to customize pricing, promotions, and product assortments down to the individual store level? Considering local demographics, consumer preferences, weather conditions, design trends and inventory levels? Imagine an AI-powered platform that dynamically adjusts pricing for every customer in real-time based on factors like browsing history, purchase intent, and competitor pricing. This could revolutionize personalized pricing and loyalty programs.

Manufacturing: A factory equipped with AI sensors and predictive models could optimize production line efficiency, detect potential equipment failures before they happen, and personalize product configurations based on individual customer needs.

Financial Services: Banks and financial institutions can use AI to offer personalized financial products and advice. Can AI analyze a customer's spending habits, investment history, and financial goals to suggest tailored investment strategies or savings plans?

A Reshaped Partner Ecosystem

Telecommunications: AI is reshaping partnerships in telecom, with companies collaborating with AI firms for predictive maintenance of networks, customer service chatbots, and personalized marketing.

Pharmaceutical: Pharma companies are partnering with AI-driven biotech firms for drug discovery and development, using AI to analyze clinical trial data for faster and more efficient drug development processes.

Healthcare: AI-powered platforms could connect patients with specialists across different healthcare systems, enabling remote consultations and more efficient care coordination. This would require collaborations between hospitals, insurers, and tech companies.

Finance: Banks could partner with AI startups to offer personalized financial advice and automated wealth management, blurring the lines between traditional banking and fintech.

Snowballing Risk and Expansive Regulatory Regimes

Healthcare: Hospitals and healthcare providers contemplating the use of A.I for patient diagnosis and treatment must navigate complex data privacy laws and address potential biases in AI algorithms.

E-commerce: Online retailers using AI for personalized recommendations need to comply with data protection regulations and ensure their algorithms do not inadvertently discriminate against certain groups of customers.

Radical Cost Transformation

Manufacturing: AI-driven automation in manufacturing can drastically reduce labor costs and improve efficiency, leading to a shift in the cost structure with more emphasis on technology investments. (Industrial Metaverse, Building more resilient Supply Chains)

Energy Sector: AI in energy management and smart grid technologies can lead to significant cost savings in energy production and distribution, reducing reliance on human labor for monitoring and maintenance.

Education: AI tutors and personalized learning platforms could dramatically reduce student-teacher ratios, making high-quality education accessible to more people at a lower cost. This would require collaboration between educators, AI developers, and policymakers.

Logistics: Autonomous trucks and drones powered by AI could revolutionize freight transportation, significantly reducing costs and improving efficiency. This would require infrastructure changes and collaboration between logistics companies and governments.

Value Proposition Redefinition

Automotive Industry: AI is transforming the automotive industry's value proposition from merely selling cars to providing mobility solutions, with features like AI-driven autonomous driving, predictive maintenance, and personalized in-car experiences.

Travel and Hospitality: AI enables hotels and travel companies to offer highly personalized experiences to guests, from AI-powered room customization to virtual concierge services, redefining the value proposition from standard hospitality services to personalized travel experiences.


Publishing and Media: AI algorithms curating personalized content feeds can make traditional one-size-fits-all media offerings obsolete. Media companies must adapt by leveraging AI to offer personalized content.

Retail Banking: AI-driven fintech solutions offering personalized banking and financial advice could make traditional one-branch-fits-all banking models obsolete. Banks need to integrate AI into their services to remain competitive.

Read the full article here - 6 Ways AI Could Disrupt Your Business. Think about other scenarios which could enable A.I disruption in your Industry and get ahead of the curve.

Rotimi Olumide

Thought leader, speaker, multifaceted business leader with a successful track record that combines consumer & product marketing, strategic business planning, creative design and product management experience.

Connect on LinkedIn

Explore our other blog posts

View all blog posts