Business model innovation of architecture, engineering and construction consultancies in the AI era

Architecture, engineering and construction (AEC) consultancy firms face significant challenges in reconfiguring their business models to capitalise on emerging opportunities driven by artificial intelligence (AI). Existing business models often hinder value capture and limit adaptability in an increasingly dynamic and turbulent environment. However, there is limited understanding of the barriers to business model innovation within AEC consultancy firms. This paper highlights the critical role of dynamic capabilities and coordination flexibility capabilities (CFCs) in enabling AEC firms to develop new business models. The ability of an individual AEC firm to navigate accelerating technological change will depend on how effectively it leverages existing resources, cultivates dynamic capabilities and enhances CFCs, all while maintaining organisational health in an environment primarily driven by survival pressures. By examining these strategic imperatives, this paper offers practical insights for AEC consultancy firms seeking to achieve organisational transformation, differentiation and sustained competitiveness in the AI era.