Table 1

Three AI-first strategy archetypes

Digital tycoonNiche carverAsset augmenter
Strategic intentDominate a selected field with data and algorithmsCarve out a niche and scale upTurn legacy assets into an AI advantage
Data advantageDigital products and services designed to accumulate real-time data flowsCustomer- or domain-specific data accessed and harnessed to train AI modelsTangible core assets producing a continuous flow of sensory and process data
Algorithmic advantageCore business processes and AI algorithms improve in a mutually reinforcing manner through an AI flywheel effectSuperior algorithmic performance within a spearhead areaAbility to use algorithms inside closely controlled physical environments
Execution advantageDominating position helps feed the AI flywheel, leading to continuously increasing user value and lower costsDeep-tech AI capability enables superior value propositions to be provided to a niche marketExclusive access to tangible asset base enables AI-driven efficiency and augmentation in processes and product–service portfolios
Strategic bottlenecks and risksMassive digital scope creates regulatory pressure, internal coordination costs and reputational risksIntense technological focus might overshadow broader customer value creationLegacy mindsets, practices and systems
Source: Authors

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