Redefining Industry Dynamics: The Impact of AI and Robotics on Competitive Advantage

Redefining Industry Dynamics: The Impact of AI and Robotics on Competitive Advantage

Shakeel Basheer, Ishfaq Tramboo, Sheezan Farooq, Zahra Behboodi
Copyright: © 2024 |Pages: 18
DOI: 10.4018/979-8-3693-2248-2.ch008
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Abstract

This study examines how AI and robots shift competitive advantage across industries. Through a literature analysis, case studies, and a robust methodological framework, this study shows how new technologies change operational paradigms, redefine innovation, and put organizations at the forefront of industry dynamics. Strategic AI and robot integration is essential for competitive advantage in manufacturing, healthcare, banking, logistics, and tourism. This theoretical framework helps scholars, practitioners, and policymakers navigate the intricate relationships between AI, robots, and industry dynamics. Finally, the chapter suggests further research on ethical issues, interdisciplinary studies, long-term effects, global perspectives, and human-AI collaboration. This research provides a solid foundation for understanding how AI and robotics are changing the commercial landscape at the technological frontier.
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1. Introduction

In the ever-changing environment of modern industries, the combination of artificial intelligence (AI) and robots is a revolutionary force, overturning established paradigms and redefining competitive landscapes (Doborjeh et al., 2022). As we traverse the complicated interplay between technology breakthroughs and market factors, it becomes clear that the convergence of AI and robots is more than a trend; it is a fundamental change with far-reaching repercussions (Subasinghe et al., 2020). This chapter digs into the dynamic junction of these technologies and their far-reaching effects on competitive advantage across industries (Javed et al., 2023). The acceleration of technological progress, particularly in AI and robots, has become a feature of the twenty-first century (Vinuesa et al., 2020). From automated manufacturing processes to intelligent decision-making systems, the range of applications is extensive, affecting many aspects of industry. This technological explosion can be traced back to the convergence of processing power, big data analytics, and machine learning techniques (Yigitcanlar et al., 2021). As sectors face unprecedented challenges and opportunities, understanding the implications of these breakthroughs for competitive advantage becomes critical. The modern corporate environment is characterized by fierce competition, with attaining and maintaining a competitive edge being the crux of organizational success. Traditional competitive advantages, like as cost leadership or product differentiation, are changing as AI and robotics change the rules of engagement (Boguszewicz-Kreft et al., 2020). The essential question arises: How do these technical developments alter the nature of competition, and what strategic imperatives do they impose on enterprises wishing to prosper in this new era (Filieri et al., 2021).

This investigation has far-reaching implications beyond academic discourse; it pervades corporate boardrooms and entrepreneurial initiatives (Camaréna, 2021). Understanding the revolutionary influence of AI and robotics is more than just an academic exercise; it is required for strategic decision-making. Businesses who recognize the consequences early on will have a significant advantage over their competitors, while those that fail to adapt risk obsolescence in an era marked by technological dynamism (Buhalis & Karatay, 2022). This chapter will methodically investigate and analyze the multidimensional relationship between AI, robotics, and competitive advantage. It aims to contribute to the growing corpus of literature on technology-driven industry transitions by synthesizing current research, investigating real-world examples, and developing conceptual frameworks (S. Park & Kim, 2022). Through this exploration, we hope to provide scholars, practitioners, and policymakers with insights that might help them make strategic decisions, stimulate innovation, and negotiate the obstacles posed by the inexorable march of technological advancement.

As we embark on this intellectual adventure, the chapters that follow will chronicle the story of technological disruption, strategic adaptation, and the redefining of industry dynamics in the age of AI and robotics (Farooq et al., 2023). In doing so, we ask readers to join us in deciphering the complexities of a new industrial era defined by the convergence of artificial intelligence and robots.

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