AI-powered startups: leveraging artificial intelligence for competitive advantage

PurposeHotel industry is witnessing a radical change as a result of technology interaction such as artificial intelligence (AI) in service tasks. As a result of this transformation, the pattern of service delivery based on human interaction has been changed to digital interaction. This brought opportunities to the hotels industry and consolidate its competitive advantage. However, the understanding gap still existed in both practical implementation and literature, especially in developing countries. Therefore, this paper aims to explore how hotels use AI to carry out services tasks.Design/methodology/approachThe authors adopted the qualitative research method through Semi interviews. The sample was purposively selected from five 5-star hotels in the UAE, meanwhile, the managers were the targeted respondents.FindingsThrough content analysis, the authors find that the UAE hotels use AI in managing trip planning, reception service and room services. The authors also find that there are four key drivers that improve the performance of AI, which include AI infrastructure flexibility, strategic alignment, management and skills. Finally, the authors found four indicators of the impact of AI on hotels, which are quality, cost and market share and customers satisfaction.Originality/valueThis study is one of few studies that explored the use of AI in the hotels industry and discussed how AI influence several aspects of hotels performance and helped them to attain their competitive advantage. This study is also one of few studies and the first study in UAE to explore the key drivers of AI performance in UAE hotels.

The research paper discusses the impact of Artificial Intelligence (AI) on organizational and process-level performance. The study follows a four-step process: analyzing AI technologies, exploring case studies, collecting data, and reviewing AI literature. The findings indicate that AI has various technologies, such as machine translation, chatbots, and self-learning algorithms, that can enhance automation, information, and transformation effects. Organizations can use AI to improve processes, optimize operations, and develop strategic and competitive advantages. The study provides insights into how organizations can enhance the business value of their transformation projects by leveraging AI's attributes. The research framework proposes a more comprehensive approach to account for the intangible benefits of AI in organizations. The study highlights that AI combines several configurations of IT in various industries, and organizations should reconfigure their processes to achieve performance through AI capabilities. The research also provides tangible evidence about the business value of AI-based projects and their impact on firm performance, considering it not as a single technology but as a set/combination of several different configurations of IT in various industries. The study has scientific and managerial interests and proposes a model for analyzing the impact of AI on firm performance, providing managers with insights to improve their organizations' performance, profitability, and competitive advantage.

In an era where artificial intelligence (AI) is revolutionizing business paradigms, this study delves into the intricacies of AI-driven business models, offering a nuanced understanding of their emergence, evolution, and impact on traditional business strategies. This scholarly inquiry aims to dissect the role of AI in reshaping business models, highlighting the interplay between technological innovation and business strategy. The study meticulously examines the integration of AI into various business facets by employing a systematic and thematic analysis of a diverse range of literature, including academic journals, industry reports, and case studies. This methodological approach facilitates a comprehensive understanding of AI's role in business innovation, addressing both the opportunities and challenges it presents. The findings reveal that AI-driven business models are characterized by enhanced operational efficiency, data-driven decision-making, and customer-centric approaches. These models signify a transformative shift from conventional business strategies, demanding a reevaluation of leadership roles and ethical considerations in the digital age. The study identifies key challenges in AI implementation, such as technical complexities and ethical dilemmas, while uncovering AI's vast opportunities for business growth and competitive advantage. Conclusively, the study recommends a balanced approach to AI integration, emphasizing the need for ethical AI practices, continuous adaptation, and a synergy between AI capabilities and human insights. It advocates for business leaders to embrace AI not just as a technological tool, but as a catalyst for sustainable and innovative business growth. This scholarly work contributes significantly to the discourse on AI in business, providing a foundational framework for future research and practical application in AI-driven business innovation. Keywords: Artificial Intelligence, Business Models, Digital Transformation, AI Integration, Leadership in AI, Ethical AI Practices.

Artificial Intelligence (AI) is reshaping strategic management in Chinese enterprises, offering powerful tools for data-driven decision-making and competitive advantage in a dynamic business environment. This study examines how AI adoption influences strategic management practices in China. Background: Chinese firms are integrating AI across strategy formulation and execution amidst strong state support and a booming AI industry. However, traditional strategic methods reliant on managerial intuition and static analysis face limitations handling big data and rapid market changes. We adopt a conceptual analysis of recent literature and industry reports (2019-2024) to outline frameworks, comparative approaches, and case insights on AI-driven strategy. Findings indicate that AI-enhanced practices improve market forecasting, real-time environmental scanning, and operational efficiency. Chinese enterprises lead in AI adoption e.g. 83% of surveyed Chinese firms report using generative AI vs 65% in the US leveraging AI for automation, customer analytics, and innovation. We propose a conceptual model of AI-integrated strategic management linking AI capabilities with enhanced agility and competitiveness. Comparative analysis shows AI-augmented approaches enable faster decisions and personalized strategies relative to traditional methods. Nonetheless, challenges arise in workforce adaptation, data governance, and alignment with strategic goals. AI is a catalyst for strategic transformation in China, elevating analytical rigor and responsiveness of enterprises. To realize its full potential, firms must develop AI maturity, address ethical and talent gaps, and align AI initiatives with long-term strategy. This work contributes a structured overview of AI strategic impacts, offering frameworks (PESTLE, SWOT) and guidance for Chinese enterprises and policymakers to harness AI for sustainable competitive advantage.

Purpose This study identifies the critical factors influencing the adoption of artificial intelligence in recruitment processes and examines how such adoption reconfigures the sources of competitive advantage. Design/methodology/approach Drawing on the resource-based view and dynamic managerial capabilities perspectives, we conceptualise managerial capabilities as the applied manifestation of the microfoundations of dynamic managerial capabilities, in the context of artificial intelligence implementation. Data from 245 HR professionals involved in artificial intelligence driven recruitment were analysed using structural equation modelling. Findings HR competency and open innovation, operating through the microfoundations of dynamic managerial capabilities and manifested in managerial capabilities, significantly drive artificial intelligence adoption. Top management support strengthens these relationships by ensuring strategic alignment and resource mobilisation. Artificial intelligence adoption enhances competitive advantage by integrating human expertise with artificial intelligence–enabled capabilities. Research limitations/implications The study does not capture longitudinal dynamics and their generalisability across different cultural and industrial contexts. Practical implications Organisations should build internal capabilities, foster external innovation partnerships and secure leadership commitment to ensure responsible and strategically aligned artificial intelligence adoption. Social implications The adoption of AI in recruitment processes underscores the pivotal role of human-machine collaboration, enhancing HR practices and promoting a competitive edge in the labour market. This shift necessitates a re-evaluation of workforce dynamics and the ethical considerations surrounding AI integration in human resource management. Originality/value This study offers a novel perspective on how intangible resources and managerial capabilities interact to drive artificial intelligence adoption and reshape competitive advantage in recruitment contexts.

Academic Summary Firms face intensifying pressure to innovate amid escalating US–China trade tensions. This study investigates how they integrate artificial intelligence (AI) to respond to such disruptions. We reconceptualize induced innovation theory as adversity‐induced innovation theory and test hypotheses using data from listed Chinese manufacturing firms, WTO tariff records, and customs data (2015–2022). Results indicate that higher tariff exposure increases AI integration, particularly among firms with stronger customer engagement needs. AI integration improves supply chain efficiency, sales performance, and market value. However, performance benefits follow an inverted U‐shape: extreme tariff exposure diminishes AI's compensatory effects. The study extends induced innovation theory to geopolitical adversities and advances stakeholder engagement theory by identifying customer engagement as a boundary condition for technology adoption. We establish causal relationships between tariff‐induced AI integration and firm performance through instrumental variable analysis and robustness checks. Findings inform how firms can strategically use technological innovation and customer collaboration to strengthen resilience under external shocks. Managers should view trade tensions as catalysts for AI integration rather than merely as obstacles. Managerial Summary Firms facing trade tensions should view them as catalysts for strategic AI integration rather than merely as obstacles. Our research shows that firms experiencing higher tariff exposure that invest in AI achieve measurable improvements in supply chain efficiency, sales performance, and market valuations. However, AI's compensatory benefits diminish at extreme tariff levels, revealing an optimal investment threshold that managers should consider. The benefits of AI integration are particularly strong for firms with high customer engagement needs, such as those with concentrated customer bases, substantial international sales, or significant customer‐specific investments. To maximize returns, managers should prioritize AI technologies that strengthen customer relationships by enhancing communication, responsiveness, and service personalization during trade disruptions. Successful implementation requires navigating technical and organizational challenges, including talent acquisition, data quality concerns, and integration complexities. Despite these hurdles, our findings confirm AI's strategic value as a compensatory innovation tool that not only mitigates tariff impacts but also transforms supplier‐customer relationships. By aligning AI initiatives with customer engagement objectives, firms can turn geopolitical adversity into a competitive advantage. Companies that integrate AI strategically can maintain operational continuity, preserve market position, and emerge stronger from trade disruptions.

Artificial Intelligence (AI) has emerged as a transformative tool in business operations, particularly in the areas of revenue optimisation, customer relationship management (CRM), and strategic decision-making processes. In revenue optimisation, AI leverages advanced algorithms and machine learning techniques to analyze vast datasets, enabling businesses to predict demand, optimize pricing strategies, and identify profitable opportunities. AI's dynamic pricing models, which adjust in real-time based on market conditions and consumer behavior, significantly enhance revenue generation by ensuring businesses can capitalize on peak demand and minimize losses during low-demand periods. In CRM, AI plays a critical role in personalizing customer interactions by utilizing data from various touchpoints, such as purchase history and online behavior, to provide tailored recommendations and offers. AI-driven chatbots and virtual assistants enhance customer service by automating routine tasks and providing instant support, thereby improving customer satisfaction and loyalty. Additionally, AI enables businesses to forecast customer preferences and segment their customer base effectively, leading to more targeted and impactful marketing efforts. In strategic decision-making, AI supports business leaders by offering data-driven insights that assist in identifying trends, risks, and opportunities. AI tools analyze both internal and external data, providing actionable insights for resource allocation, market expansion, and product development. By reducing human biases and enhancing decision accuracy, AI empowers businesses to make faster, more informed decisions. The integration of AI in revenue optimisation, CRM, and strategic decision-making processes not only streamlines operations but also contributes to business growth and competitive advantage. As AI technology continues to evolve, its impact on these key areas is expected to expand, further driving innovation and efficiency in business practices.

This concluding chapter reflects on the transformative journey through artificial intelligence (AI) adoption in small businesses and entrepreneurship, emphasizing the need for continuous learning, ethical implementation, and adaptability in an AI-driven world. It highlights key takeaways from previous chapters, reinforcing the practical, strategic, and ethical considerations necessary for successful AI integration. The chapter underscores AI’s role as a catalyst for business growth, not merely as a tool for automation but as an enabler of innovation, enhanced decision-making, and competitive advantage. Readers are encouraged to embrace AI as a strategic partner, leveraging its capabilities to augment human intelligence rather than replace it. Additionally, the discussion delves into future AI trends, urging businesses to remain agile, adaptable, and forward-thinking in their AI strategies. A significant focus is placed on ethical AI governance, addressing critical issues such as data privacy, algorithmic bias, transparency, and accountability. Entrepreneurs are provided with practical steps to ensure responsible AI deployment, fostering trust among customers, employees, and stakeholders. Finally, this chapter calls upon entrepreneurs to engage in lifelong learning, build AI-driven networks, and contribute to a responsible AI ecosystem. AI is not a one-time implementation but a continuous journey of exploration, adaptation, and ethical stewardship—one that will shape the future of business, innovation, and entrepreneurship.

In today's rapidly evolving business landscape, Artificial Intelligence (AI) stands as the proverbial 'elephant in the room,' profoundly shaping diverse sectors and contexts. While debates rage among policymakers, practitioners, and politicians about regulating AI's widespread use, it's undeniable that AI represents a long-awaited digital technology poised to revolutionize organizational performance. Amidst the post-COVID era, the allure of AI has intensified, yet the critical question lingers: Can firms effectively harness AI and other technologies, such as Generative AI and Large Language Models (LLMs), to enhance their existing systems? Through a systematic literature review, a clear correlation between firms’ implementation of AI, including the cutting-edge Generative AI, and their ability to adapt to changing market dynamics, drive operational excellence, and unlock new avenues for growth are explored. Moreover, key drivers of AI and digital adoption, such as the imperative for data-driven decision-making, the quest for customer-centricity, and the drive for sustainable business practices are explored. Our research not only highlights the transformative potential of AI and digital technologies but also provides actionable insights for business leaders navigating the complexities of technology adoption. By understanding the motivations, challenges, and strategic imperatives driving firms' technology choices, including the integration of Generative AI and LLMs, organizations can chart a path towards sustainable growth and competitive advantage in the digital age. This study underscores the revolutionary impact of Generative AI in digital transformation, offering a comprehensive understanding of their role in shaping the future of business.

In today's hypercompetitive and rapidly changing business environment, organizations are increasingly turning to advanced technologies to maintain and enhance their market positions. Business intelligence (BI) systems have long been central to corporate strategy by providing data-driven insights. Recently, the integration of artificial intelligence (AI) into BI has heralded a new era of predictive analytics, enabling organizations to forecast market trends with unprecedented precision and agility. While the promise of AI-driven BI is substantial, its effective implementation requires a confluence of technological prowess, human capital development, and supportive organizational culture. Executives must navigate the challenges of integrating new technologies with legacy systems, upskill their workforce, and foster a data-centric mindset across the organization. Consequently, the competitive advantage derived from AI-driven BI is not merely a function of technology adoption but also a reflection of an organization's ability to leverage its human and organizational resources effectively. Despite the burgeoning literature on AI and business intelligence, there remains a significant gap in understanding the precise mechanisms by which AI-driven market prediction models contribute to competitive advantage. In particular, the interplay between technological integration, human capital development, and strategic outcomes warrants further empirical exploration. The present study addresses the following overarching research problem: How does the integration of AI into business intelligence systems optimize market prediction models, and what is its impact on achieving competitive advantage? JEL Codes: O33, M15, L25 Keywords: Business Intelligence, Artificial Intelligence, Market Prediction, Competitive Advantage, Descriptive Correlational Study, Digital Transformation.

The rapid advancement of artificial intelligence (AI) has significantly transformed modern marketing practices, particularly through AI-based marketing assistants such as ChatGPT and Jasper AI. These tools enable brands to deliver personalized, data-driven, and real-time interactions that enhance customer engagement. This study explores the impact of AI-powered marketing assistants on consumer decision-making processes and brand perception. By analyzing consumer responses to AI-generated content, recommendations, and conversational interfaces, the research identifies how automation influences trust, satisfaction, and purchase intentions. AI-driven personalization improves information accessibility and reduces decision fatigue, thereby accelerating buying behavior. However, concerns regarding authenticity, transparency, and data privacy may moderate consumer trust. The study also examines how perceived intelligence and responsiveness of AI tools shape brand credibility and emotional connection. Findings suggest that brands leveraging AI assistants strategically can strengthen brand image and competitive advantage. The research highlights the importance of ethical AI use and human–AI balance in marketing communication. Overall, AI-based marketing assistants are reshaping consumer-brand relationships in the digital era. KEYWORDS: Artificial Intelligence (AI), ChatGPT, Jasper AI, AI-based Marketing Assistants, Consumer Decision-Making, Brand Perception, Personalization, Customer Engagement, Purchase Intention.

Purpose: In an era of digital revolution and environmental urgency, artificial intelligence (AI) has emerged as a critical component of business performance and sustainability. By analysing the numerous ways AI can enhance marketing ROI, financial efficiency, and environmental sustainability, this paper offers an integrated framework to achieve Green Competitive Advantage. Design: The study uses a qualitative analytical approach in conjunction with a literature review, real-world case studies (like Netflix, Domino's, Unilever, and Patagonia), and financial modelling (DuPont and Economic Value Added) to assess the connection between AI adoption and sustainable business practices. Findings: Research indicates that by increasing customer retention and simplifying campaign strategies, AI-driven personalisation significantly boosts marketing return on investment. AI-using companies exhibit quantifiable gains in shareholder value, asset turnover, and net profit margins. By reducing energy consumption and carbon emissions, artificial intelligence (AI) in operations—such as route optimisation and predictive analytics—supports corporate sustainability goals. However, the survey also identifies barriers, particularly for SMEs, including high adoption costs, skewed data, inadequate infrastructure, and complex regulations. Originality: The research advances theory by acknowledging AI as a strategic resource for long-term value generation and by aligning with the Resource-Based View, Stakeholder Theory, and Triple Bottom Line Framework. By connecting AI-enabled technologies to green finance, it also raises the concept of "Smart Sustainable Finance." The paper offers useful strategic guidance for SMEs, corporations, lawmakers, and educators on how to overcome challenges and ethically integrate AI. The study concluded that responsible and transparent AI application in accordance with ESG goals and ethical governance is necessary to obtain a competitive advantage and foster sustainable growth in the AI-driven economy.  

The article outlines the profound and far-reaching impact of the implementation of Artificial Intelligence (AI) on core areas of organizational performance, with particular reference to issues such as innovation, transfer of knowledge, competitiveness, reduction of development time and global collaboration. Utilizing structural equation modeling with PLS-SEM, the research rigorously tested for validity and reliability of the constructs, thus providing a strong theoretical foundation to the empirical analysis conducted on a diverse sample of 371 companies distributed in various industries. From the empirical findings, it is discovered that AI not only facilitates but also contributes great value to the innovation performance, coupled with the enhancement of knowledge transfer in organizations. On the other hand, it was highlighted that the utilization of AI-based solutions leads to a dramatic increase in the competitive advantage of organizations, via the streamlining of internal processes and establishment of distinctive capabilities, which provide a long-term competitive advantage. Besides, another important aspect found is that utilising AI reduces substantially the developmental time, which makes an organization more effective in a scenario of rapid change and intense competition. In the case of international cooperation, even though the impact was evaluated as moderate, the results continue to reflect the high value of AI in international networks and global cooperation. In addition to these empirical observations, the theory contribution of the research is significant, as it guarantees the idea that AI is not just a mere technology tool but asserts itself as a strategic one capable of triggering not just innovation, but organizational competitiveness. The study adds to the body of literature by providing empirical evidence to demonstrate how AI allows not only automation but also generation and dissemination of context-relevant knowledge. The insights applied to business leaders emphasize making AI adoption a central component of business strategy, situating innovation teams around AI-related competencies, and integrating it into knowledge management and global collaboration flows. In conclusion, this paper suggests the necessity of creating a strategic response in Adopting Artificial Intelligence to equip business leaders with the necessary tools and intelligence to enhance organizational performance in the intricate environment of the contemporary digital economy.

Artificial Intelligence (AI) is revolutionizing the retail sector, catalyzing unprecedented advancements in operational efficiency, customer engagement, and strategic decision-making.This paper delves into the transformative impact of AI across the retail value chain, from inventory management and supply chain optimization to personalized customer experiences and dynamic pricing models.By leveraging AI-driven algorithms and machine learning techniques, retailers are not merely adapting to the rapidly evolving market dynamics but are actively shaping the future of retail. The integration of AI technologies, such as predictive analytics, natural language processing, and computer vision, enables retailers to achieve real-time insights and hyper-personalization, thereby enhancing customer satisfaction and loyalty. These technologies facilitate precise demand forecasting, automated inventory replenishment, and the optimization of logistics, reducing costs and minimizing waste. Furthermore, AI-powered recommendation engines and chatbots are redefining customer interaction by delivering tailored shopping experiences, fostering deeper connections between consumers and brands. This paper also examines the strategic implications of AI adoption in retail, highlighting its role in driving innovation and competitive advantage. Retailers that successfully harness AI capabilities are better equipped to anticipate customer preferences, respond to market trends, and create differentiated value propositions. Moreover, the ethical considerations surrounding AI deployment, including data privacy and algorithmic bias, are critically assessed to ensure responsible and sustainable AI integration. This study underscores the pivotal role of AI in propelling the retail industry toward a future characterized by enhanced efficiency, agility, and customer-centricity. By embracing AI, retailers are not only navigating the complexities of the digital age but are also setting new standards for operational excellence and customer engagement. The findings of this research provide valuable insights for retail practitioners, policymakers, and scholars, offering a comprehensive understanding of how AI is transforming the retail landscape and what it entails for the future of the industry.

The banking industry in Iraq, especially after 2003, has witnessed significant transformations. Amid these changes, competition among banks to attract customers and offer innovative services has intensified. In this context, artificial intelligence (AI) has emerged as a novel tool, creating new opportunities for banks. This research examines the impact of AI adoption on the company’s competitive advantage, with the mediating role of strategic capability in Iraqi banks. The research methodology is mixed (qualitative followed by quantitative). Initially, a review of the literature and relevant articles was conducted to analyze the company's strategic capability, marketing competitive advantage, and the mediating role of AI. Then, based on interviews, relevant indicators were identified and determined. After these factors were clarified, a questionnaire was designed based on the identified components and distributed to a specific sample within the target population to test the proposed model. According to the research findings, AI adoption can be utilized as a strategic tool to enhance strategic capability and the company’s competitive advantage in Iraqi banks.