The Impacts of Artificial Intelligence on Business Innovation: A Comprehensive Review of Applications, Organizational Challenges, and Ethical Considerations
This review synthesizes current knowledge on the transformative impacts of artificial intelligence (AI)—computational systems capable of performing tasks requiring human-like reasoning—on business innovation. It addresses the potential of AI to reshape strategies, operations, and value creation acro...
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| Format: | Article |
| Language: | English |
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MDPI AG
2025-04-01
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| Series: | Systems |
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| Online Access: | https://www.mdpi.com/2079-8954/13/4/264 |
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| author | Ruben Machucho David Ortiz |
| author_facet | Ruben Machucho David Ortiz |
| author_sort | Ruben Machucho |
| collection | DOAJ |
| description | This review synthesizes current knowledge on the transformative impacts of artificial intelligence (AI)—computational systems capable of performing tasks requiring human-like reasoning—on business innovation. It addresses the potential of AI to reshape strategies, operations, and value creation across various industries. Key themes include AI-driven business model innovation, human–AI collaboration, ethical governance, operational efficiency, customer experience personalization, organizational capability development, and adoption disparities. AI enables scalable product development, personalized service delivery, and data-driven strategic decisions. Successful implementations hinge on overcoming technical, cultural, and ethical barriers, with ethical AI adoption enhancing consumer trust and competitiveness, positioning responsible innovation as a strategic imperative. For practitioners, this review offers evidence-based frameworks for aligning AI with business objectives. For academics, it identifies research frontiers, including longitudinal impacts, context-specific roadmaps for small- and medium-sized enterprises, and sustainable innovation pathways. This review conceptualizes AI as a driver of systemic organizational transformation, requiring continuous learning, ethical foresight, and strategic ability for competitive advantage. |
| format | Article |
| id | doaj-art-ffb97d43da224d34b0046466ed1b4b3e |
| institution | OA Journals |
| issn | 2079-8954 |
| language | English |
| publishDate | 2025-04-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Systems |
| spelling | doaj-art-ffb97d43da224d34b0046466ed1b4b3e2025-08-20T02:25:12ZengMDPI AGSystems2079-89542025-04-0113426410.3390/systems13040264The Impacts of Artificial Intelligence on Business Innovation: A Comprehensive Review of Applications, Organizational Challenges, and Ethical ConsiderationsRuben Machucho0David Ortiz1Information Technologies Program, Polytechnic University of Victoria, Ciudad Victoria 87138, Tamaulipas, MexicoBusiness Administration and Management Program, Polytechnic University of Victoria, Ciudad Victoria 87138, Tamaulipas, MexicoThis review synthesizes current knowledge on the transformative impacts of artificial intelligence (AI)—computational systems capable of performing tasks requiring human-like reasoning—on business innovation. It addresses the potential of AI to reshape strategies, operations, and value creation across various industries. Key themes include AI-driven business model innovation, human–AI collaboration, ethical governance, operational efficiency, customer experience personalization, organizational capability development, and adoption disparities. AI enables scalable product development, personalized service delivery, and data-driven strategic decisions. Successful implementations hinge on overcoming technical, cultural, and ethical barriers, with ethical AI adoption enhancing consumer trust and competitiveness, positioning responsible innovation as a strategic imperative. For practitioners, this review offers evidence-based frameworks for aligning AI with business objectives. For academics, it identifies research frontiers, including longitudinal impacts, context-specific roadmaps for small- and medium-sized enterprises, and sustainable innovation pathways. This review conceptualizes AI as a driver of systemic organizational transformation, requiring continuous learning, ethical foresight, and strategic ability for competitive advantage.https://www.mdpi.com/2079-8954/13/4/264artificial intelligencebusiness innovationethical governanceorganizational learningstrategic decision-makingdigital transformation |
| spellingShingle | Ruben Machucho David Ortiz The Impacts of Artificial Intelligence on Business Innovation: A Comprehensive Review of Applications, Organizational Challenges, and Ethical Considerations Systems artificial intelligence business innovation ethical governance organizational learning strategic decision-making digital transformation |
| title | The Impacts of Artificial Intelligence on Business Innovation: A Comprehensive Review of Applications, Organizational Challenges, and Ethical Considerations |
| title_full | The Impacts of Artificial Intelligence on Business Innovation: A Comprehensive Review of Applications, Organizational Challenges, and Ethical Considerations |
| title_fullStr | The Impacts of Artificial Intelligence on Business Innovation: A Comprehensive Review of Applications, Organizational Challenges, and Ethical Considerations |
| title_full_unstemmed | The Impacts of Artificial Intelligence on Business Innovation: A Comprehensive Review of Applications, Organizational Challenges, and Ethical Considerations |
| title_short | The Impacts of Artificial Intelligence on Business Innovation: A Comprehensive Review of Applications, Organizational Challenges, and Ethical Considerations |
| title_sort | impacts of artificial intelligence on business innovation a comprehensive review of applications organizational challenges and ethical considerations |
| topic | artificial intelligence business innovation ethical governance organizational learning strategic decision-making digital transformation |
| url | https://www.mdpi.com/2079-8954/13/4/264 |
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