AI-enabled Business Model Innovation for the Healthcare Industry

Abstract: Recent developments in the field of Artificial Intelligence (AI) drive businesses to introduce digitally advanced products, services, processes, and mechanisms to various markets (Krauset al. 2022; Parida et al. 2019). In this manner, the healthcare sector proves as a propitious industry for successful AI-application (Jiang et al. 2017; Yu et al. 2018). However, expected business gains cannot be achieved through the sole integration of AI-systems into healthcare products, processes and/ or services (Åström et al. 2022; Lee et al. 2019). To appropriately operationalise and commercialise AI-based offerings, so-called AI-solution-specialists are urged to change, adapt, and modify their prevailing business models (BMs) (Frank et al. 2019;Kiel et al. 2017). This study addresses the mentioned research gap by providing a thorough investigation of relevant literature and conducting a qualitative research methodology. By the means of guideline-based, structured interviews, data from seven cases on AI-based businessmodels in the healthcare sector were collected. With our findings we propose one theoretical framework on healthcare-specific AI-enabled BM modifications and one model on generalised AI-based value chain activities. In this way, we deliver insights into how AI is utilised in healthcare firms and how it is ultimately integrated into firm operating models - highly contributing to current literature. Further, our proposed frameworks serve as blueprints supporting practitioners in successfully creating, delivering, and capturing value stemming from AI-based technologies. Finally, being limited in scope, we propose future research to extend the study’s focus to an ecosystem-perspective and further apply a longitudinal research design to observe AI-enabled business model changes over a longer time span.