International Journal of Information Management

International Journal of Information Management xxx (xxxx) xxxx
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International Journal of Information Management

journal homepage: www.elsevier.com/locate/ijinfomgt
The strategic use of artificial intelligence in the digital era: Systematic

literature review and future research directions
Aline F.S. Borgesa,*, Fernando J.B. Laurindoa, Mauro M. Spínolaa, Rodrigo F. Gonçalvesb,
Claudia A. Mattosc
a
Universidade de São Paulo Escola Politécnica Departamento de Engenharia de Produção, São Paulo, Brazil
b
Graduation Program in Production Engineering - Universidade Paulista, São Paulo, Brazil
c
Fundação Educacional Inaciana Padre Sabóia de Medeiros, São Paulo, Brazil
ARTICLE INFO ABSTRACT
Keywords: Artificial Intelligence tools have attracted attention from the literature and business organizations in the last
Artificial intelligence decade, especially by the advances in machine learning techniques. However, despite the great potential of AI
Deep learning technologies for solving problems, there are still issues involved in practical use and lack of knowledge as
Machine learning regards using AI in a strategic way, in order to create business value. In this context, the present study aims to fill
Business strategy
this gap by: providing a critical literature review related to the integration of AI to organizational strategy;
Information technology
synthetizing the existing approaches and frameworks, highlighting the potential benefits, challenges and op-
Literature review
portunities; presenting a discussion about future research directions. Through a systematic literature review,
research articles were analyzed. Besides gaps for future studies, a conceptual framework is presented, discussed
according to four sources of value creation: (i) decision support; (ii) customer and employee engagement; (iii)
automation; and (iv) new products and services. These findings contribute to both theoretical and managerial
perspectives, with extensive opportunities for generating novel theory and new forms of management practices.
1. Introduction Norvig, 2010). Instead, the evolution of AI was slower than expected
and relied on changes in researches directions over time, with phases of
In the digital era, the business world has required shorter response new approaches introduction and refinement of existing ones (Russell &
times and more attention to the competitive landscapes, which can Norvig, 2010).
change more quickly than ever before (Venkatraman, 2017). In this However, in the last decade, the huge volume of data in diverse
background, many companies are embracing new technologies aiming formats being generated faster than ever, demanded the development of
to achieve high performance and competitive advantage (Weill & new technologies, resulting in an acceleration of technological progress,
Woerner, 2017). Among these technologies, Artificial Intelligence has which includes increasing the computational processing capacity and
occupied a prominent position (Panetta, 2018) and has attracted at- the development of new AI techniques (Brynjolfsson & McAfee, 2017;
tention from both the literature and business organizations. According Bughin et al., 2017).
to Davenport (2018), the AI may be the technological force with the With these progresses, companies such as Netflix, Google, Airbnb,
greatest disruptive potential in evidence nowadays. Similarly, for Amazon and Uber are able to process large amounts of data with AI and
Brynjolfsson and Mcafee (2017), AI is the most important general- use the results to expand their scope with new products, markets and
purpose technology of our era, particularly with regards to machine services (Iansiti & Lakhani, 2020; Venkatraman, 2017).
learning techniques. Considering the competitive scenario of the business world and with
The term Artificial Intelligence was first coined in 1956 by high volumes of data, scarce resources and the need for speed in de-
McCarthy, which he referred to as “the science and engineering of cision-making, many organizations are motivated to adopt AI technol-
making intelligent machines” (McCarthy, 1958). Since then, the history ogies, mainly by their disruptive potential demonstrated by top digital
of AI has experienced success cycles and periods of mistaken optimism. corporations (Bean, 2019; Chakravorti, Bhalla, & Chaturvedi, 2019;
From the beginning, based on interesting findings, AI researchers were Davenport, 2018; Venkatraman, 2017).
confident with predictions of their successes in a near future (Russell & Aware that the disruption process requires a review of the business
⁎
Corresponding author.
E-mail address: [email protected] (A.F.S. Borges).
https://doi.org/10.1016/j.ijinfomgt.2020.102225
Received 31 December 2019; Received in revised form 9 August 2020; Accepted 10 August 2020
0268-4012/ © 2020 Elsevier Ltd. All rights reserved.
Please cite this article as: Aline F.S. Borges, et al., International Journal of Information Management,
https://doi.org/10.1016/j.ijinfomgt.2020.102225
A.F.S. Borges, et al. International Journal of Information Management xxx (xxxx) xxxx
strategy, different leaders are reformulating their strategic plans for the 2.1. Artificial intelligence
insertion of AI technologies (Davenport, 2018). However, the literature
suggests that more research is necessary to understand the impacts of AI Since the 1950s, when McCarthy introduced the term Artificial
in the business strategies planning and execution (Pappas, Mikalef, Intelligence, the AI field has developed in two dimensions: human-
Giannakos, Krogstie, & Lekakos, 2018), since there is still little theo- centered and rationalist approaches. The human-centered approaches
retical and empirical evidence on how to create business value with the involve hypothesis and experimental validation, being part of the em-
adoption of AI technologies (Brynjolfsson & Mcafee, 2017; Davenport, pirical science (Bellman, 1978; Haugeland, 1985; Kurzweil, 1990; Rich
2018; Mikalef, Pappas, Krogstie, & Giannakos, 2018; Mikalef, Boura, & Knight, 1991). In turn, the rationalist approaches comprise a com-
Lekakos, & Krogstie, 2019; Pappas et al., 2018; Duan, Edwards, & bination of engineering and mathematics (Charniak & McDermott,
Dwivedi, 2019; Wilson & Daugherty, 2018). Therefore, this article at- 1985; Luger & Stubblefield, 1993; Schalkoff, 1990; Winston, 1970).
tempts to address the above research gaps by examining the intersec- Although AI has ideas, viewpoints and techniques from other areas,
tion of the literature about artificial intelligence and business strategy, we here consider it a field which aims to develop software and hard-
through a systematic literature review. ware able to perform actions that can only be executed with the use of
There are several researches that review the literature about AI cognition (Bundy, Young, Burstall, & Weir, 1978; Russell & Norvig,
linked with: medicine (D’Souza, Prema, & Balaji, 2020; 2010). Therefore, from the rationalist approaches perspective, the field
Ebrahimighahnavieh, Luo, & Chiong, 2020; Foulquier et al., 2018; of AI encompasses any technique which enable machines to act by si-
Kedra et al., 2019; Wang, Wang, & Lv, 2019; Orgeolet et al., 2020), mulating the human behavior to achieve the best result or, in un-
accounting (Henrique, Sobreiro, & Kimura, 2019; Sezer, Gudelek, & certainty scenarios, the best result expected (Russell & Norvig, 2010).
Ozbayoglu, 2020); computer science (Moghekar & Ahuja, 2019; Zheng, In the early days of AI, the major challenge was (and still is) to
Chien, & Wu, 2014; Wang, Chen, Li, & Vargas, 2019) telecommunica- perform tasks that are easily solved by a human being, but hard to
tion (Hassanien, Darwish, & Abdelghafar, 2019; Morocho-Cayamcela, describe formally in terms of mathematical rules (Abramson,
Lee, & Lim, 2019); education (Alenezi & Faisal, 2020); sustainability Braverman, & Sebestyen, 1963; Goodfellow, Bengio, & Courville, 2016).
(Nishant, Kennedy, & Corbett, 2020), impact on the future of industry The difficulty in explaining this type of task by defining rules in-
and society (Dwivedi et al., 2019); and others (Carvalho et al., 2019; dicated that AI techniques needed the capability to extract patterns
Guzman & Lewis, 2020; Li et al., 2019; McKinnel, Dargahi, from data and to acquire their own knowledge (Abramson et al., 1963;
Dehghantanha, & Choo, 2019; Sharma, Kamble, Gunasekaran, Kumar, Goodfellow et al., 2016; Michie, 1968; Solomonoff, 1985). This ability
& Kumar, 2020). In addition, few studies review the literature about AI is known as machine learning (Goodfellow et al., 2016), which enable
from an organizational perspective, addressing information manage- computer-based applications to automatically detect patterns in data
ment (Pandl, Thiebes, Schmidt-Kraepelin, & Sunyaev, 2020; Zhu, and to act without explicitly being programmed (Murphy, 2012). Thus,
Zhang, & Sun, 2019); decision-making (Duan, Xiu, & Yao, 2019; Ding the field of AI has advanced not just in the direction of process rules
et al., 2020); sustainable performance evaluation (Souza, Francisco, previously defined by human beings for simulating human behavior to
Piekarski, Prado, & Oliveira, 2019); and the future of work (Wang & make decisions (as in classical AI algorithms), but also aiming to mimic
Siau, 2019). Thus, to the best of our knowledge, this study differs from human learning.
those already published by contributing with a systematic literature The progress of AI with the development of machine learning al-
review that investigates the researches state of the relationship between gorithms demanded means to map the knowledge acquired from
AI and business strategy, theme not encompassed in the studies above learning process to final predictions. This need drove the development
mentioned. of approaches categorized as representation learning, in which features
The use of technology by organizations as a strategic tool is not a are transformed into an intermediate representation containing useful
recent practice (Bharadwaj, El Sawy, Pavlou, & Venkatraman, 2013; information (Bengio, Courville, & Vincent, 2013; Witten & Frank,
Laurindo, 2008; Venkatraman, 2017), but the connection of the AI 2016).
technologies usage with business strategy becomes significantly more When representations are expressed in terms of other representa-
complex in relation to other technologies, since AI applications are able tions, as in the case of complex concepts, it is necessary to employ deep
to perform tasks that require cognition and were formerly typically learning techniques. Deep learning is a kind of representation learning
associated with humans (Bean, 2019; Brynjolfsson & Mitchell, 2017; that has the power and flexibility to represent the world through a
Duan, Xiu et al., 2019; Lichtenthaler, 2020a; Norman, 2017; Wilson & hierarchy of concepts, in which each concept can be defined in relation
Daugherty, 2018). In this sense, obtaining value from AI investments is to simpler concepts (Goodfellow et al., 2016). It means that deep
more complex than expected, due the paradox that the same person learning allows computational models to learn representations with
may have negative or positive attitudes towards AI, depending on the diverse levels of abstraction and these models are composed of multiple
specific situation (Lichtenthaler, 2019). processing layers (LeCun, Bengio, & Hinton, 2015).
Thus, the present study aims to investigate and to analyze the lit- To summarize, Fig. 1 illustrates the relationship between the AI
erature regarding artificial intelligence and the connection of these disciplines. The diagram shows how deep learning is a kind of re-
technologies with concepts of business strategy in order to: (i) identify presentation learning, which is used for many but not all approaches of
and describe the existing approaches and frameworks which deal with machine learning, which in turn is considered a kind of AI. The main
the relationship of AI technologies and business strategy; (ii) provide a difference among AI disciplines is the dependence of the human being
synthesis of potential benefits, challenges and opportunities of the AI on establishing rules or defining features to represent a problem. From
strategic usage aligned with business strategy; (iii) present a discussion the AI layer, human dependence on the learning process decreases to-
about the future research directions. wards inner layers.
To exemplify these differences, consider the problem of re-
commending products to a customer on an e-commerce platform. An
2. Theoretical background example of classic AI algorithm would be to implement a program
based on the rule: if the customer has already made a purchase, then
This section presents the literature review on the relevant studies recommend the products most purchased by him. Classic AI algorithms
related to AI and about the information technology alignment with are built using hand-designed programs containing rules defined by a
business strategy, introducing the main definitions of fundamental domain expert human (Goodfellow et al., 2016).
concepts under the lens of different authors of these areas separately. Now, consider a customer that never bought on the platform. The
defined rule will fail. A solution would be to use the age of the customer
2
defined by the human being are used for the algorithm to map more
abstract features. This is a capability of a deep learning algorithm.
Deep learning algorithms are a type of representation learning and
they need the human being to define just simple features. From these
simple features, they can define more abstract features in additional
layers of learning and then perform a mapping from features
(Goodfellow et al., 2016; LeCun et al., 2015). The term deep comes
from these additional layers of learning.
2.2. Artificial intelligence in organizations
In the organizational perspective, the studies proposed in the early

phases of AI began to assist the process of decision-making in the mid-
1960s (Buchanan & O’Connell, 2006). At that moment, the AI field
solved problems that could be described by a list of mathematical for-
mulas (McCarthy & Hayes, 1981; Siklóssy, 1970).
AI has been used in business since the 1980s, being a target of in-
vestments and efforts from many companies to design and to implement
computer vision systems, robots, expert systems, besides software and
hardware for those purposes (Boden, 1984; Russell & Norvig, 2010).
Moreover, at that time, AI had already begun to be cited as a strategic
tool to improve organizational differentiation at a competitive scenario
(Holloway, 1983; Porter & Millar, 1985).
Until the turn of the millennium, the studies on computer science in
the AI field had focused on the algorithms, to create new approaches or
to improve the existing ones (Zhuang, Wu, Chen, & Pan, 2017). Yet,
since 2001, researchers have suggested that for many AI problems, the
challenge was the volume of data, due to the existence of very large
databases (Russell & Norvig, 2010). For this reason, new AI techniques
were developed (Brynjolfsson & McAfee, 2017; Zhuang et al., 2017)
enabled by the hardware evolution. This technological progress is at-
tributed to the big data phenomenon, characterized by the interplay of
technology, methodology and analysis capacity in order to search, ag-
gregate, and cross-reference large data sets to identify patterns and to
obtain insights (Boyd & Crawford, 2012).
In 2016, the Google DeepMind team presented to the world the real
potential of AI technologies with AlphaGo, implemented with deep
learning, which is one of the most important advances in machine
learning throughout history (Hassabis, Suleyman, & Legg, 2017). Al-
Fig. 1. Diagram representing the relationship between AI, machine learning, phaGo is a computer program that plays the ancient game of Go and
representation learning and deep learning.
was trained from human experts moves and reinforcement learning
from games of self-play (Silver et al., 2017). The AlphaGo was not built
to perform recommendations based on product category. In this case, with rules and does not contain just moves planned by a human being,
the age and product category are features defined by a human being. because the Go search space is enormous and it hinders the evaluation
From these features, more rules could be established by a human spe- of board positions and moves to predict possibilities as in chess (Silver
cialist based on historical purchase data. But if the platform has diverse et al., 2016). Instead, it uses creativity and has the ability to identify
products and many customers, the definition of these rules becomes and to share new insights about the game, showing how the AlphaGo
more difficult. Thus, a machine learning model could be trained from algorithm is different from traditional AI (Silver et al., 2017). This
the historical data based on these features. Classic machine learning ability made it possible for AlphaGo to beat the world champion Lee
algorithms are a type of AI that needs a human to hand-design features Sedol in a five-game match, with some moves that challenged millennia
which will be used by the algorithm to perform a mapping from fea- of Go wisdom (Hassabis et al., 2017).
tures by extracting patterns and acquiring their own knowledge The rise of AI in recent years and its development in many knowl-
(Murphy, 2012). edge fields is due to three key factors: significant volume of data, im-
Resuming the problem of product recommendation, besides the proved algorithms, and substantially better computational hardware
customer age, more features of customers can be important in real (Brynjolfsson & McAfee, 2017). This evolution has attracted the atten-
world scenarios. An approach generally used in this kind of problem is tion of large technology-oriented organizations to AI tools. Thus,
clustering the customers using representation learning algorithms. companies such as Google, Amazon, Microsoft, Salesforce and IBM
Representation learning algorithms are a kind of machine learning, but started to provide infrastructure for machine learning in the cloud, fa-
they start the learning process one step ahead of the classic machine cilitating the access and use of cognitive technologies (Brynjolfsson &
learning algorithms. Representation learning methods have the capa- Mcafee, 2017; Davenport, 2018; Marr & Ward, 2019; Venkatraman,
city to learn from features inputted by a human and they are able to 2017).
perform a mapping from features (Goodfellow et al., 2016). In the case Currently, in organizational contexts, AI can be considered a tech-
of clustering the customers, representation learning models can decide nology that has been introduced as a means of emulating human per-
the cluster of a client without the human being previously knowing it. formance with the potential to draw its own conclusions through
However, due the number of features that exist in real-world contexts, learning, which can aid human cognition or even replace human in
the accuracy of the model could be improved if the features initially tasks that require cognition (Chakravorti et al., 2019). In general, AI
3
technologies can enable performance improvements in terms of speed, implementation (Campbell & Alexander, 1997). Besides the process of
flexibility, customization, scale, innovation, and decision-making formulation and implementation, strategy can emerge in response to a
(Venkatraman, 2017; Wilson & Daugherty, 2018). situation (Mintzberg, 1987).
In addition, companies can benefit from the use of AI to generate The plan formulation process, which results in the strategic plan
value in different business dimensions: process automation; gaining (Campbell & Alexander, 1997), encompasses decisions related to com-
insight through data for decision-making; engaging customers and petitive, product-market choices (Henderson & Venkatraman, 1999).
employees; designing and delivering new products and services The implementation process, which means strategy execution or
(Davenport & Harris, 2017; Davenport & Ronanki, 2018; Davenport, strategy implementation (Kaplan & Norton, 2000; Littler, Aisthorpe,
2018; Lyall, Mercier, & Gstettner, 2018; Mikalef et al., 2019; Hudson, & Keasey, 2000; Neilson, Martin, & Powers, 2008; Bell, Dean,
Ransbotham, Gerbert, Reeves, Kiron, & Spira, 2018; Schrage & Kiron, & Gottschalk, 2010), comprises the choices that concern the structure
2018; Westerman, Bonnet, & McAfee, 2014). and capabilities of the enterprise to execute its product-market choices
(Henderson & Venkatraman, 1999).
2.3. The strategic use of technology According to Porter (1996), the core of strategy is to achieve a
unique and valuable position, encompassing the selection of a unique
In this research context, AI tools are within the Information arrangement of activities to deliver a unique value arrangement, en-
Technology (IT) field. IT involves human, organizational and admin- abling the company to differentiate itself from its competitors. Thus, a
istrative aspects, as well as encompassing information systems, data well defined strategy must encompass these perspectives (Porter &
processing, software engineering, hardware and software (Keen, 1993; Nohria, 2018).
Porter & Millar, 1985). The management and business literature also brings concepts per-
Although a few scholars limit the concept of IT to technological taining to the strategy theory that categorizes it according to the di-
factors, such as Alter (1992), we here consider the definition that also versification level of a company. For a diversified company, the strategy
includes issues related to workflow, people and information, as un- has two levels: corporate strategy and business strategy (Porter, 1987;
derstood by Porter and Millar (1985). Therefore, IT must be considered Slack & Michael, 2002; Mintzberg, Ahlstrand, & Lampel, 2000). From a
“broadly to encompass the information that businesses create and use corporation perspective, corporate strategy concerns two questions:
as well as a wide spectrum of increasingly convergent and linked how the company should manage the range of business units and what
technologies that process the information” (Porter & Millar, 1985). businesses the corporation should be in (Porter, 1987). Business
Despite the rise in the digital era, the role and impact of IT on the strategy is about how to compete in each business (Mintzberg et al.,
organizational context are not recent themes. In the late 1970s, re- 2000).
searchers started to discuss the potential of IT to influence organiza- Some scholars consider the concept of business strategy a synonym
tions competition (Benjamin, Rockart, Morton, & Wyman, 1983; to competitive strategy, arguing that competitive strategy regards how
Henderson & Venkatraman, 1992; Keen, 1991; King, 1978; McFarlan, to generate competitive advantage in each of the businesses in which a
1984; Porter, 1979; Laurindo, 2008; Luftman, Lewis, & Oldach, 1993). corporation competes (Andrews, 2005; Porter, 1987). However, the
In this direction, some scholars begun employing the term “strategic literature presents a series of studies that use the term business strategy
use” to refer to the potential of IT to shape new business strategies or to to refer to strategy in a broad way, covering all the unfolding of the
support existing ones, and to provide value to business (Frangou, Wan, concept from an organizational perspective (Bharadwaj et al., 2013)
Antony, & Kaye, 1998; Henderson & Venkatraman, 1999; Luftman and this is the definition adopted in this study. In this regard, business
et al., 1993; McFarlan, 1984; Philip, Gopalakrishnan, & Mawalkar, strategy can also be understood as an organizational strategy, which
1995; Porter & Millar, 1985). However, within this subject, there is a some authors define as the general direction in with the organization
historical debate about the firms inability to generate value from in- chooses to move to achieve its objectives and goals (Bharadwaj et al.,
vestments in IT applications, which several authors attribute to the lack 2013; King, 1978; Miles, Snow, Meyer, & Coleman, 1978).
of alignment between the business and IT strategies (Bharadwaj et al., The IT strategy has emerged as an unfolding of the business strategy
2013; Cancino & Zurita, 2017; Chi, Huang, & George, 2020; Gerow, at the functional level and should be expressed in terms of internal and
Grover, Thatcher, & Roth, 2014; Henderson & Venkatraman, 1999; external domains (Henderson & Venkatraman, 1999). The internal do-
Luftman et al., 1993; Masa’deh & Shannak, 2012; Mattos & Laurindo, main is related to how the information systems (IS) infrastructure
2017; Reich & Benbasat, 1996; Sabherwal & Chan, 2001; Shao, 2019). should be designed and managed (Henderson & Venkatraman, 1999).
Before proceeding with the explanation of the alignment between The external domain concerns how the firm is positioned technologi-
the business and IT strategies, it is important to understand what these cally in the market domain (Henderson & Venkatraman, 1999). The
concepts mean. Within the business domain, the conceptual frame of term IS strategy is also utilized with the same meaning as IT strategy
strategy consists of a large and growing body of multifaceted references (Chi et al., 2020; Shao, 2019).
that present heterogeneous approaches (Eisenhardt & McDonald, 2020; According to Henderson and Venkatraman (1999), the alignment
Hakansson & Snehota, 2006; Mintzberg & Lampel, 1999). The need for between the business and IT strategies is a process of continuous
strategy is linked to the existence of competition, although there is a adaptation and transformation that encompasses not only business
significant difference between natural competition and strategy. For strategy and IT strategy, but also organization infrastructure and pro-
Henderson (1989), natural competition is determined by probabilities cesses, and IT infrastructure and processes. Against this background,
and is evolutionary, while strategy is governed by reason and has a the strategic use of IT can enable the organization to keep up with
revolutionary character. Here, revolutionary means disrupting the changes in the competitive scenario (Laurindo, 2008).
natural course of events through deliberate interventions (Henderson, Several models, theories and methodologies were proposed in the
1989). literature focusing on the use of IT aligned with the business strategy
From an organizational perspective, strategy focuses on accelerating and operation (Gerow et al., 2014). Gradually, digital technologies have
the pace of change, aiming to modify the final result thus benefiting (or taken a leading position in the business strategies (Bharadwaj et al.,
value) the firm that performed this intervention (Brandenburger & 2013; Bughin & Catlin, 2019; Laurindo, 2008; Mattos, Kissimoto, &
Stuart, 1996; Porter, 1996; Shimizu, Carvalho, & Laurindo, 2006). For Laurindo, 2018; Venkatraman, 2017).
some scholars, strategy is the planning of actions that generate com- However, in the digital age, Bharadwaj et al. (2013) argue that it is
petitive advantage for the business and the execution of these actions necessary to rethink the role of IT strategy. Rather than being con-
(Henderson, 1989). In other words, strategy involves the formulation of sidered at the functional level and, in many cases, driven by a business
a well-structured plan about how to create value to business and its strategy, as proposed by (Henderson & Venkatraman, 1992), the IT
4
strategy must be integrated with the business strategy in a compre- relevant to identify and to summarize the state of the literature about
hensive phenomenon called digital business strategy (or digital the relationship between AI and business strategy.
strategy), which consists of an organizational strategy planned and Thus, the following questions emerge:
executed to take advantage of the digital resources to obtain differential RQ1 – Is there any evidence of the connection between the business
value (Bharadwaj et al., 2013; Venkatraman, 2017). strategy and the use of AI technologies?
This view of the fusion of IT strategy with business strategy is also RQ2 – What are the motivations to adopt AI strategically?
advocated by other authors of the literature, who believe that a dy- RQ3 – What potential advantages have been discussed regarding the
namic synchronization between IT and business must occur to obtain a strategic use of AI?
competitive advantage (Mithas, 2012; Prahalad & Krishnan, 2002; RQ4 – What impacts and benefits have enterprises received from
Mithas, Tafti, & Mithell, 2013). Prahalad and Krishnan (2008) highlight using AI in the business strategy context?
the importance of IT focused applications and of the analytic capacity RQ5 – What knowledge gaps exist in the current literature about the
provided by IT tools for building competitive advantages and innova- intersection between AI technologies and business strategy that future
tions in the business strategy. researches can investigate?
Despite the evolution of the theoretical and empirical contributions Considering these questions, this research was conducted using the
of studies that address the strategic use of digital technologies, when it systematic literature review method, following (Tranfield, Denyer, &
comes to AI, it becomes significantly more complex because AI tech- Smart, 2003) in combination with Kitchenham (2004) and Kitchenham
nologies are able to perform tasks that require cognition (Goodfellow et al. (2009). As suggested by these authors, the literature review can be
et al., 2016; Hassabis et al., 2017). This capacity allows firms to radi- subdivided into three main phases: planning the review, conducing the
cally change the scale, scope, and learning paradigms (Iansiti & review and reporting the review. The first two are detailed in this
Lakhani, 2020), which demonstrate the great potential of AI to provide section. The final phase is presented in section 4.
value to business. Therefore, the strategic use of AI is related to har- This methodology has been used by several studies in the literature
nessing this potential. on information systems, technology applications and operational re-
Despite the technological evolution in the last decade, academics search (Al-Emran, Mezhuyev, Kamaludin, & Shaalan, 2018; Ali,
and practitioners have discussed that technology is not the main chal- Shrestha, Soar, & Wamba, 2018; Costa, Soares, & de Sousa, 2016;
lenge to adopting AI, but cultural obstacles, process and people (Bean, Gupta, Kar, Baabdullah, & Al-Khowaiter, 2018; Lepenioti, Bousdekis,
2019; Duan, Xiu et al., 2019; Gursoy, Chi, Lu, & Nunkoo, 2019; Apostolou, & Mentzas, 2020; Martins, Gonçalves, & Petroni, 2019).
Khakurel, Penzenstadler, Porras, Knutas, & Zhang, 2018). To address
them, Davenport and Mahidhar (2018) argue that a strategy is neces- 3.1. Planning the review
sary that properly includes information, technology components,
people, management change and ambitions to transform the enterprise Based on the research questions and using the theoretical back-
and the business. Naming the new generation of AI tools as cognitive ground of AI, information technology and business strategy domains,
technologies, the authors refer to that strategy as cognitive strategy this study focused on the following meanings: "artificial intelligence",
(Davenport & Mahidhar, 2018). "machine learning", "deep learning", "representation learning", "stra-
The diagram in Fig. 2 illustrates the connection of IT and Strategy tegic plan", "emergent strategy", "strategy execution", "competitive
themes considered in this study, from an organizational point of view. strategy", "competitive advantage", "digital strategy", "business
strategy", "corporate strategy", "organizational strategy", "information
technology strategy", "cognitive strategy" and "strategic use". In addi-
3. Methodology tion to the main concepts, its synonymous were defined.
The digital databases considered for this study were Web of Science
Given the changes occurred in the AI field in the last decade, the and Scopus, which were used by multiple researches in the literature
attention of top corporations for AI tools and the challenges involved in (Agarwal, Kumar, & Goel, 2019; Busalim & Hussin, 2016; Gupta et al.,
obtaining business value with the use of these type of technology, it is 2018; Rekik, Kallel, Casillas, & Alimi, 2018).
In line with Kitchenham et al. (2009) and Kitchenham (2004), to
investigate the research questions, the following inclusion criteria were
established: (i) journal and conference papers that addressed the in-
tersection between AI and business strategy domain, containing the
terms in title, abstract or keywords (ii) journal and conference papers
written in English; (iii) journal and conference papers published since
2009, when the relationship between AI technologies and business
strategy themes began to gain space in the literature (López-Robles,
Otegi-Olaso, Porto Gómez, & Cobo, 2019). Moreover, the exclusion
criterion was defined: (i) papers using the term strategy outside the
organizational perspective (such as computational approach, for ex-
ample). For the study quality assessment, the following exclusion cri-
teria were applied: (i) papers with the terms just in abstract cited to
present the study context; (ii) full article not available in electronic
document.
As recommended by Kitchenham (2004) and Kitchenham et al.
(2009), the data extraction process was planned based on the research
questions and to highlight differences and similarities between studies’
outcomes. Thus, the following elements were identified: source of
publishing; year when the paper was published; author (s); AI tech-
nology function in organizational context addressed by paper; strategic
aspects of the AI use discussed in the article; motivation of AI strategic
Fig. 2. Diagram representing the relationship between strategy concepts from use; classification of the AI technology used; research method; impacts
organizational perspective. and benefits from AI application; research target industry; challenges to
5
AI adoption. 4.1. AI tools and business strategy

According to Tranfield et al. (2003), Kitchenham (2004) and
Kitchenham et al. (2009), the step after the data extraction is the re- RQ1 regards the existence of evidence about the connection be-
search synthesis. In this stage, methods for synthetizing, integrating and tween the business strategy and the use of AI technologies. Analysing
cumulating the findings of different studies can be used. Therefore, the the sample of selected articles from the business strategy perspective,
intersection of the AI and business strategy themes was investigated in papers considering general business strategy were the most numerous,
light on the perspective of the digital business strategy: the sources of representing 53.66 % (22). The use of AI to align IT strategy and
business value creation and capture, proposed by Bharadwaj et al. business strategy were found in 21.95 % (9) of the articles. The IT
(2013). For this, the papers were studied by means of the function strategy was discussed by 2.44 % (1), while the topic competitive
exercised by AI application in an organizational context for generating strategy was addressed by 9.76 % (4). Regarding to digital strategy, the
or obtaining business value. In addition, AI applications were categor- theme was cited by 12.2 % (5). Fig. 5 shows these percentages.
ized according to their business dimensions: automation; decision The literature review of the selected articles through the AI lens
support; customers’ and employees’ engagement; proposition of new shows that techniques of classic AI (or general AI) were addressed by
products and services (Davenport & Harris, 2017; Davenport & 58.54 % (24) of the selected articles. The theme machine learning was
Ronanki, 2018; Davenport, 2018; Lyall et al., 2018; Mikalef et al., 2019; the focus of 24.39 % (10), while representation learning had the attention
Ransbotham et al., 2018; Schrage & Kiron, 2018; Westerman et al., of 12.20 % (5). Deep learning was addressed by just 4.88 % (2) These
2014). percentages can be observed in Fig. 6.
The sample of selected articles was initially examined according to
the themes of the studied fields separately. Therefore, Fig. 7 shows the
3.2. Conducing the review number of papers mapped by each theme.
The analysis of the literature intersection between AI and business
The search was performed using the Web of Science and Scopus strategy allowed verifying that the sample selected articles addressed
scientific databases using the final strings in Table 1. Drawing on the the strategic aspects of AI use to help the decision- making process in
methodological frameworks of Tranfield et al. (2003); Kitchenham the perspective of decision support; to improve stakeholder relationship
(2004) and Kitchenham et al. (2009), the systematic literature review in both the automation and customer and employee engagement
was performed based on a multilevel process to systematically identify dimensions; and to enable machine-to-machine communication in the
and summarize the fragmented literature about the strategic use of AI. dimension of new products and services offering.
Therefore, the selection process comprehended the stages shown in Table 2 presents the references belonging to each category, which
Fig. 3 and followed the procedures described below: are discussed in the following subsections.
From the perspective of the industry explored by the research works
• The terms were searched in abstracts, titles and keywords, without analyzed (Fig. 8), most of them addressed the strategic use of AI in
any other constraints. In this phase, the following articles informa- multiple contexts and for assisting the decision making process. The
tion were exported: title, authors, abstract, publication year, key- papers that dealt with AI use without applying it to a specific organi-
words, source title, document type and language. Thus, the articles zational sector focused on AI applications design or implementation.
exported metadata were saved on Microsoft Excel spreadsheets and
the duplicated studies were eliminated.
4.1.1. Decision making process
• The inclusion and exclusion criteria were applied. The full articles Although the use of AI technologies in the decision-making process
is a practice that began in the 1960s, most research works presented in
selected were exported and the quality criteria were applied.
• Based on the full content of each selected article, the data extraction the studied literature sample still discuss or cite examples about this
theme.
was performed.
In this context, one challenge faced by organizations is related to
decisions involved in planning the IT systems considering the business
4. Reporting the review strategy goals. Cebeci (2009) and Ali and Xie (2011) proposed the use
of AI tools to select the best alternative from a set of options for im-
This section presents the results of the literature review, which were plementing enterprise resource planning (ERP) systems considering the
obtained through an analysis process that considered the research business strategy perspective and goals. Cebeci (2009) contributed with
methodology detailed in Section 3 (Kitchenham, 2004; Kitchenham the use of the Balanced Scorecard theory (Kaplan & Norton, 1996) to
et al., 2009; Tranfield et al., 2003). match the ERP package objectives with the business goals, while Ali
As depicted in Fig. 4, the documents distribution throughout the and Xie (2011) provided critical factors to successfully implement ERP
years shows that there is an exponential growth of the number of papers systems.
published in the last two years. In addition, an analysis about the The design of decision support systems considering the principles of
sources and authors showed that there is no specific editor, conference, strategic information systems planning was proposed by Kitsios and
research group or author in the sample examined. Kamariotou (2016), through a conceptual framework that can help the
Table 1
Final Strings considering the search process strategy with inclusion and exclusion criteria.
Scientific database Search String
Scopus TITLE-ABS-KEY ("Artificial Intelligence" OR "Machine Learning" OR "Deep Learning" OR "Represent* Learning") AND TITLE-ABS-KEY ("strateg* plan" OR
"emergent* strateg*" OR "strateg* execution" OR "strateg* implementation" OR "competitive strateg*" OR "competitive advantage*" OR "digital strateg*" OR
"business strateg*" OR "corporate strategy" OR "organi*ational strategy" OR "information technology strateg*" OR "IT*strategy" OR "IS*Strategy" OR
"cognitive strateg*" OR "strategic use" OR "strategic usage")
Web of Science TS= ("Artificial Intelligence" OR "Machine Learning" OR "Deep Learning" OR "Represent* Learning") AND TS= ("strateg* plan" OR "emergent* strateg*" OR
"strateg* execution" OR "strateg* implementation" OR "competitive strateg*" OR "competitive advantage*" OR "digital strateg*" OR "business strateg*" OR
"corporate strategy" OR "organi*ational strategy" OR "information technology strateg*" OR "IT*strategy" OR "IS*Strategy" OR "cognitive strateg*" OR
"strategic use" OR "strategic usage")
6
Fig. 3. Number of papers in each phase of the selection process.
Fig. 4. Number of papers published by year.
Fig. 6. Number of articles by category of AI discipline found in the sample

studied.
with the enterprise strategy.

Analytics tools based on AI are part of an important topic in the
decision support theme, since they provide information and knowledge
based on data (Kiron & Schrage, 2019). In this direction, Demirkan and
Delen (2013) proposed a conceptual framework that helps the devel-
opment and implementation of decision support systems in cloud,
contributing to IT strategy. Alternatively, Dąbrowski (2017) idealized
an adaptive conceptual framework that uses machine learning to fa-
cilitate data-driven decisions and promotes goal-modelling and rea-
soning as regards IT initiatives.
Analogously, the use of AI as part of advanced analytics solutions as
a source of value to business was discussed in the literature. Nalchigar
and Yu (2017) and Harlow (2018) idealized conceptual models that
include AI technologies, representation learning and machine learning
techniques to perform classification and prediction tasks with the pro-
mise of aligning analytics requirements with the business strategy.
Fig. 5. Number of papers of sample studied per business strategy theme.
Boselli, Cesarini, Mercorio, and Mezzanzanica (2018) proposed the use
of representation learning for monitoring and classifying online job
decision process towards the business strategy. The authors implicitly advertisements and providing useful information to business to make
argue about the use of AI for problem recognition tasks and prediction better decisions about the labour market. Elacio, Balazon, and Lacatan
of the most suitable alternative to be implemented. (2020) proposed a model that uses machine learning to manage em-
Thompson, Ekman, Selby, and Whitaker (2014) presented a fra- ployee retention. Lichtenthaler (2020a) introduced a conceptual dis-
mework that uses AI to identify the most economically beneficial IT cussion about the organizational advantages in terms of competitive-
infrastructure configuration to ensure that design choices are consistent ness obtained from advanced analytics, as a result of combining of
7
Fig. 7. Research map of the literature intersection between business strategy and AI.
human intelligence and artificial intelligence.

The importance of data-driven decision approaches was also ad-
dressed by Janjua and Hussain (2012). Using representation learning to
resolve tasks of natural language processing and reasoning, the authors
proposed a conceptual framework that can be used to develop decision
support systems that reason over the data present across enterprise
boundaries.
The predictive analytics field also was tackled by Lee, Shih, and
Chen (2012) but focusing on the sales forecast problem. The researchers
employed representation learning algorithms in a framework developed
for producing daily sales fore casting, which can be a useful tool to
enhance business strategies and to increase competitive advantages.
Hsu, Chang, and Lin (2020) addressed the use of AI in predictive ana-
lytics applications for operating performance evaluation and fore-
casting.
Still in the direction of supporting decisions related to sales, but
aiming to personalize the service and to recommend products, Song Fig. 8. Number of research works analyzed by industrial context.
et al. (2017) explored the use of deep learning in a customer recogni-
tion application. The authors proposed a system, composed of software
Table 2
Classification of papers according to the dimension of AI application in organizational context.
Function of AI Application References Count
Decision Making Process Song et al. (2017); Cannavacciuolo et al., 2015; Harlow, 2018; 25
Boselli et al., 2018; Kiron & Schrage, 2019; Luo & Xu, 2019; Laínez et al., 2010; Ali & Xie, 2011;
Demirkan & Delen, 2013;
Thompson et al., 2014; Kitsios & Kamariotou, 2016; Nalchigar & Yu, 2017; Dąbrowski, 2017;
Lee et al., 2012; Neshat & Amin-Naseri, 2015; Poplawska et al., 2015;
Touati et al., 2017; Cebeci, 2009; Ching & De Dios Bulos, 2019; Arora et al., 2020; Bello-Orgaz et al.,
2020; Hsu et al., 2020; Elacio et al., 2020;
Choy et al., 2016; Janjua & Hussain, 2012;
Stakeholder Relationship Black & van Esch, 2020; Tienkouw et al., 2011; Kreps & Neuhauser, 2013; Caputo et al., 2019; Duan, 9
Xiu et al., 2019; Sujata, Aniket, and Mahasingh (2019); Bhāle, 2019; Lichtenthaler, 2019; van Esch &
Black, 2019;
Machine-to-machine communication Blitz & Kazi, 2019; 1
Decision Making Process Stakeholder Relationship Zaki, 2019; Miklosik et al., 2019; Gloor et al., 2020; 3
Decision Making Process Machine-to-machine communication Brock & von Wangenheim, 2019; Lichtenthaler, 2020b, 2020a; 3
Stakeholder Relationship
8
and cameras, which recognize customers in retail physical stores aiming aspects from online restaurant reviews to assign customers sentiments
to provide accordingly information to business strategy, enabling to reviews. According to Luo and Xu (2019), the proposed approach can
changes in sales strategy planning. help restaurateurs better understand how to meet customers’ needs and
The decision support function of AI-based solutions was also dis- maintain competitive advantages.
cussed in social responsibility and sustainability themes. Poplawska,
Labib, and Reed (2015) introduced a hybrid framework that uses classic
AI techniques to guide the decisions about the priority alternative of the 4.1.2. Stakeholder relationship
company social responsibility program to be implemented for in- The AI-based applications were also discussed within the (potential)
corporating it into the business strategy. Choy et al. (2016) focused on customer relationship theme. Tienkouw et al. (2011) projected a system
sustainability and used AI algorithms to define priorities and policies to help users to easily create their one-day trip schedule, using AI to
for establishing operation strategies from the identification of business optimize the time at each attraction considering the total travel time.
strategies. These operation strategies optimize the chemical products The design of this system was planning based on Porter (1996) concepts
production process conditions with the aiming to avoid unnecessary of competitive strategy to obtain competitive advantages in terms of
energy consumption. cost leadership, differentiation and market focus.
Neshat and Amin-Naseri (2015) planned a multi-agent intelligence Within the medicine domain, Kreps and Neuhauser (2013) analyzed
using a machine-learning algorithm in order to develop a suitable deficiencies in e-health communication programs and proposed the
platform for sustainable energy systems planning that considers the strategic use of general AI to engage patients and suppliers in the in-
market dynamics and the demand side interactions via an inter-tem- teraction with an application called ChronologyMD, which allows col-
poral modification mechanism, contributing to the business strategy lecting observations of patients’ daily living. For Kreps and Neuhauser
planning. Alternatively, Touati et al. (2017) proposed a model that uses (2013), this information is useful to increase consumer engagement and
machine learning to predict the output power from solar photovoltaic enhance health outcomes.
panels, which enables the strategic planning and management of the The use of AI tools to enhance customers experience by providing
energy systems under diverse environmental conditions. better personalization, quality of service and hassle-free service was
Suppliers management was another topic explored by the literature discussed by Sujata, Aniket, and Mahasingh (2019) and Zaki (2019).
studied using AI in solutions to support decision. In this sense, The study of Sujata et al. (2019) introduced a conceptual model to help
Cannavacciuolo, Iandoli, Ponsiglione, and Zollo (2015) combined the the alignment between IT strategy and business strategy. In the pro-
use of AI and the aggregation of indicators related to business strategic posed model, the researchers included the strategic use of AI on ap-
needs to develop a system to guide companies in the evaluation of plications such as sentiment analysis, emotion detection, virtual assis-
suppliers’ portfolio. The authors adopted the resource-based view tants, chatbots and content curation lead. Zaki (2019), on the other
paradigm (Prahalad & Hamel, 1990) for enterprise competencies as- hand, presented a conceptual argumentation about the adoption of AI
sessment and used an AI algorithm to calculate an indicator associated technologies motivated by the aims of customer experience improve-
to all the assessed competencies. ment.
In the same context of decision support, researches of the studied Considering the use of AI as a new advertising style for the product
literature discuss about the use of AI to support marketing decisions. of e-channel, Duan, Xiu et al. (2019) investigated how the AI-push af-
Laínez, Reklaitis, and Puigjaner (2010) proposed an approach using fects the profits of manufacturers and remanufacturers. Miklosik et al.
classic AI to assist managers in deciding the product pricing, the in- (2019) also addressed the use of AI to automation applied to processes,
vestments in advertising and other marketing strategies, also the pro- such as reporting, creating and optimizing advertising campaigns, and
duction and distribution planning. Miklosik, Kuchta, Evans, and Zak communication with customers. However, neither study discussed the
(2019) discussed the important role of intelligent analytical tools in the problems related to the consumers–AI interaction.
development and execution of marketing strategies, but the study Bhāle (2019) explored the autonomous digital assistance theme
findings demonstrated the low level of adoption of the analytical ap- using AI in chatbots and investigated customer satisfaction from the
plications based on machine learning to marketing management. technology acceptance perspective. According to Bhāle (2019), al-
The use of social media was addressed by Arora, Srivastava, and though some researchers argue that customers do not like to realize that
Bansal (2020). The researchers designed and implemented a model they are interacting with machines, it is possible to create value to
using machine learning to detect if posts are promoted or organic in business with digital assistance as well to improve customer experience.
order to support marketing on monitoring and analyzing the social Considering firms internal domain, the literature reviewed pre-
media behaviors of competitors (Arora et al., 2020). sented conceptual studies. Caputo, Cillo, Candelo, and Liu (2019) in-
Gloor, Fronzetti Colladon, de Oliveira, and Rovelli (2020) presented vestigated the relations between technology and human resources soft
the system Tribefinder, an instrument implemented with deep learning, skills in big data environments. They found that human resources
able to identify customers (or potential customers) tribes on Twitter. competences, emotions, behaviors and motivations influence the stra-
According to the authors, tribes are groups composed by heterogeneous tegic results of AI adoption. Moreover, Lichtenthaler (2019), argued
individuals connected by a shared emotion. For Gloor et al. (2020), that employee attitudes are crucial to obtain benefits from AI.
Tribefinder can contribute to improving firms’ competitive advantage by Still in the perspective of human resources management, van Esch
offering a way to manage their marketing strategy and, consequently, and Black, 2019 and Black and van Esch (2020) evaluated the features
their competitive strategy. that can influence prospective employees to engage with virtual assis-
Also thinking of helping the marketing strategy formulation by tant or chatbots, arguing that candidates recruitment f has moved from
using AI and data from Twitter, Bello-Orgaz et al. (2020) proposed a tactical human resources activity to a strategic business priority.
practical application to extract, model, and analyze collective behavior Regarding the relationship of AI and employees, Lichtenthaler
on Twitter activity, reflecting the responses of users to both the brand (2020a) suggested that the value of AI applications can be acquired
and other users’ actions. from the management of multiple types of intelligence in line with
Still regarding marketing strategy, Ching and De Dios Bulos (2019) corporate strategy and business strategies: human intelligence, artificial
proposed the use of machine learning applications to assign customers intelligence and meta-intelligence. For Lichtenthaler (2020a), meta-
sentiments to online restaurant reviews of the Yelp platform and use intelligence involves the recombination and renewal of the different
this information to suggest business strategies to improve customer types of intelligence, which is similar to the intertemporal evolution of
experience. Similarly, Luo and Xu (2019) used the same platform and organizational innovation processes and capabilities.
implemented an approach using machine learning to extract the main
9
4.1.3. Machine-to-machine communication • Integration of corporate functional areas information to improve the
The use of AI tools in-product was conceptually presented by Blitz management of supply and demand (Laínez et al., 2010);
and Kazi (2019), describing the challenge of autonomous charging • New business opportunities and capacity for innovation (Blitz &
stations. In their vision, AI allows a smart grid to enable different new Kazi, 2019; Zaki, 2019);
business opportunities related to hardware, software, operations, fi- • Competitive advantage with customer experience improvement
nancial services and others. Although the authors discussed AI in a (Tienkouw et al., 2011; Zaki, 2019);
generic way and did not specify any technology in particular, for them, • Producing actionable information present across organizational
AI tools can be used to automatize station selection and scheduling; the boundaries based on reasoning to assist business decision (Janjua &
recharge task itself; payment; and the communication of stations net- Hussain, 2012);
works. For Blitz and Kazi (2019), strategists need to be prepared to the • Gaining advantage of segmenting populations to personalize actions
future of transportation and to take advantage of the AI technologies and even replace or support human decision-making (Harlow,
potential to create and to develop these new business opportunities. 2018);
In a more realistic way, Brock and von Wangenheim (2019) offered • Allowing firms human resources to focus on the more productive
empirical evidences about the use of AI in smart products, but they processes (Caputo et al., 2019);
focused on general AI. Alternatively, Zaki (2019) cited new products • Enhancing customer experience by providing better personalization,
with virtual assistants using voice recognition technology as a way to quality of service and hassle-free service (Sujata et al., 2019; Zaki,
enable interaction between humans and cognitive technologies. 2019).
4.2. Motivation of AI strategic adoption According to the empirical results of the literature review, the im-
plementation of AI applications considering business strategy within
Although some studies indicate that the overall use of AI is pri- the decision support domain can benefit enterprises with:
marily driven by the technological potential and not by the real busi-
ness needs (Bean, 2019; Davenport, 2018; Lichtenthaler, 2020a), RQ2 • Planning IT systems with more accuracy (Ali & Xie, 2011; Cebeci,
concerns the motivation that leads to AI strategically usage. Thus, in the 2009);
literature sample studied, most studies (65.85 %) were motivated by • Strategic decision-making considering internal and external factors
business needs, while 24.39 % focus on the technological potential to (Poplawska et al., 2015);
solve problems and less than 1% cited both. Table 3 presents these • Elimination of some difficulties regarding describing products at-
numbers along with references. tributes and machine settings (Choy et al., 2016);
• Products quality improvement (Choy et al., 2016);
4.3. The impacts and benefits of AI strategic use • Market behavior classification (Neshat & Amin-Naseri, 2015);
• Reduction of the number of trials and materials in product devel-
Seeking to investigate RQ3 and RQ4, the research results evidence opment and production processes (Choy et al., 2016);
of each paper studied was categorized. Through the theoretical results • Efficiency and effectiveness improvement of employees’ recruitment
found, potential advantages of the connection between AI technologies (van Esch & Black, 2019);
and business strategy were analyzed. Alternatively, in papers with • Enhancing business strategies based on sales forecast (Lee et al.,
empirical contributions, the (negative or positive) impacts and benefits 2012) and performance forecast (Hsu et al., 2020);
that enterprises have received from the AI strategic use were identified. • Real-time labour market monitoring to drive the identification of
Table 4 presents the references for each research evidence category strategic decisions to improve firms market share (Boselli et al.,
separated by function performed by AI application in the organizational 2018);
domain. • Monitoring users’ responses to the brand actions from Twitter data
Regarding theoretical research works from the studied literature, to improve the marketing strategy formulation process (Bello-Orgaz
the following potential advantages were cited: et al., 2020);
• Providing useful information for human resources management to
• Business strategy improvement with predictive analytics (Demirkan augment the retention of employees (Elacio et al., 2020);
& Delen, 2013; Lee et al., 2012; Dąbrowski, 2017; Touati et al., • Better understanding how to meet customers’ needs (Ching & De
2017); by optimizing key performance indicators (Schrage & Kiron, Dios Bulos, 2019; Luo & Xu, 2019);
2018); and with image recognition to identify customer behavior • Providing insights related to a brand competitors behaviors and
(Song et al., 2017); marketing strategies (Arora et al., 2020).
• Selection of the best alternative for IT infrastructure configuration
plans according to future business conditions and its impacts on the In the context of customer relationship, the empirical studies show
need to make IT changes (Thompson et al., 2014); that the strategic use of AI enables customer experience improvement
• Effective implementation of decision support systems to guide by reducing the service resolution times with digital assistance and,
strategic decision- making (Cannavacciuolo et al., 2015); consequently, decreasing churn in the contact centers (Bhāle, 2019).
Table 3
References of the key motivation to AI adoption.
Key Motivation References Count
Business needs Song et al., 2017; Tienkouw et al., 2011; Cannavacciuolo et al., 2015; Boselli et al., 2018; Kreps & Neuhauser, 2013; Caputo 27
et al., 2019; Kiron & Schrage, 2019; Luo & Xu, 2019; Duan, Edwards et al., 2019; Laínez et al., 2010; Sujata et al., 2019; Ali &
Xie, 2011; Thompson et al., 2014; Kitsios & Kamariotou, 2016; Lee et al., 2012; Dąbrowski, 2017; Neshat & Amin-Naseri,
2015; Poplawska et al., 2015; Touati et al., 2017; Cebeci, 2009; Ching & De Dios Bulos, 2019; Arora et al., 2020; Bello-Orgaz
et al., 2020; Elacio et al., 2020; Hsu et al., 2020; Choy et al., 2016; Gloor et al., 2020;
Technological Potential Black & van Esch, 2020; Blitz & Kazi, 2019; Harlow, 2018; Brock & von Wangenheim, 2019; Demirkan & Delen, 2013; 10
Nalchigar & Yu, 2017; Bhāle, 2019; Lichtenthaler, 2019; van Esch & Black, 2019; Janjua & Hussain, 2012;
Business needs Technological Potential Zaki, 2019; Miklosik et al., 2019; Lichtenthaler, 2020a, 2020b; 4
10
Table 4
References by category of research evidences.
Function of AI Application Research Evidence Category
Theoretical Empirical
Decision Making Process Boselli et al., 2018; Kiron & Schrage, 2019; Luo & Xu, 2019; Ali Song et al., 2017; Cannavacciuolo et al., 2015; Harlow, 2018;
& Xie, 2011; Thompson et al., 2014; Kitsios & Kamariotou, Laínez et al., 2010; Demirkan & Delen, 2013; Nalchigar & Yu,
2016; Neshat & Amin-Naseri, 2015; Poplawska et al., 2015; 2017; Dąbrowski, 2017; Lee et al., 2012; Touati et al., 2017;
Cebeci, 2009; Ching & De Dios Bulos, 2019; Arora et al., 2020; Janjua & Hussain, 2012;
Bello-Orgaz et al., 2020; Hsu et al., 2020; Elacio et al., 2020;
Choy et al., 2016;
Stakeholder Relationship Kreps & Neuhauser, 2013; Duan, Xiu et al., 2019; Bhāle, 2019; Black & van Esch, 2020; Tienkouw et al., 2011; Caputo et al.,
van Esch & Black, 2019 2019; Sujata et al., 2019; Lichtenthaler, 2019;
Machine-to-machine communication Blitz & Kazi, 2019;
Decision Making Process Stakeholder Miklosik et al., 2019; Gloor et al., 2020; Zaki, 2019;
Relationship
Decision Making Process Machine-to- Brock & von Wangenheim, 2019; Lichtenthaler, 2020b, 2020a;
machine communication Stakeholder
Relationship
Count 22 19
Moreover, the use of AI can provide sustainability business strategy implications (Caputo et al., 2019; Lichtenthaler, 2020a, 2020b;
alternatives, such as new advertising styles for e-channels (Duan, Xiu Lichtenthaler, 2019). Only two papers focused on the aware use of deep
et al., 2019). Despite the positive impacts and benefits of AI, the use of learning (Gloor et al., 2020; Song et al., 2017).
cognitive technologies also involves negative implications (Davenport, Considering the above mentioned, challenges and future research
2018). However, these negative impacts were discussed just con- opportunities were established based on the literature review results.
ceptually by the studied literature (Caputo et al., 2019; Lichtenthaler, Thus, knowledge gaps and research propositions were defined in terms
2020a, 2020b; Lichtenthaler, 2019). of sources of value creation with the user of AI and its connection with
business strategy. These challenges and propositions are described
5. Discussion, challenges and future research opportunities below.
Although the literature review shows the use of AI in connection 5.1. Decision support
with business needs and strategies, the results indicate that this inter-
section was little explored by the academy and still holds open ques- According to the literature review results, the connection between
tions and challenges. Therefore, this section presents the results of RQ5 AI and business strategy to decision support was addressed by most
investigation. Fig. 9 shows the proposed framework based on findings, papers. However, recent advances in deep learning (Goodfellow et al.,
highlighting the gaps for future studies. 2016) have not been well addressed yet. Likewise, no empirical evi-
The new generation of AI (or cognitive technologies) which com- dence about the automation of the decision-making effectiveness was
prehend the technologies involving cognition, and little depend on or found. This result may be related to the complexity of the interaction
eliminate human beings to perform tasks was discussed just in specific between human and AI, which also affects decision-making automation
contexts (Bhāle, 2019; Lee et al., 2012; Song et al., 2017); for appli- (Barro & Davenport, 2019; Caputo et al., 2019; Lichtenthaler, 2019;
cations with no focus on AI tool aspects (Janjua & Hussain, 2012; Miklosik et al., 2019). Some AI technologies need a human expert in the
Nalchigar & Yu, 2017); or for introducing conceptually managerial problem domain to establish hypotheses and to select relevant features
Fig. 9. State of the literature about the intersection between the use of AI tools and business strategy.
11
(Russell & Norvig, 2010), but the fear of job elimination can lead Facing the digital era opportunities, some researchers found auto-
human beings not to provide useful information to AI model creation mation the most common type of AI application in organizations, due to
(Ransbotham et al., 2018). In turn, deep learning techniques can extract its easy implementation and rapid return on investment (Davenport &
patterns from data by themselves (LeCun et al., 2015), but it is hard for Ronanki, 2018; Fountaine, McCarthy, & Saleh, 2019; Venkatraman,
humans to understand and to explain the results (Davenport, 2018). 2017). Perhaps because more recently there is an view that automation
However, in the era of big data and the need for speed to conduct can create competitive advantage if used to automate tasks faster than
business, AI technologies can make better decisions than humans in competitors and a greater number of tasks (Venkatraman, 2017). For
some contexts and human can decide better when judgment is required this reason, it is necessary a digital business strategy to achieve benefits
(Colson, 2019; Lichtenthaler, 2019). Thus, it is important to analyze through AI use in automation tasks (Jesuthasan & Boudreau, 2017).
how leaders formulate strategies to take advantage of the AI potential Moreover, it is necessary to establish and to develop capabilities that
and to adjust the AI-human equation for generating value to business involve business rules to harness automation to obtain advantages
(Lichtenthaler, 2020a, 2019). Proposition1was outlined based on this (Davenport, 2019). More complex tasks require human resources to
context. develop an adequate level of confidence with the technology (Caputo
et al., 2019). Proposition 4 was thus defined.
Proposition 1. . The adjustment of the AI-human equation in alignment
with business needs and digital strategies is important for companies to Proposition 4. . The use of a new generation of AI tools in alignment
successfully implement applications based on the new generation of AI with a well defined digital business strategy considering business needs
technologies. and rules can enable automation and generate competitive advantage to
the organization.
5.2. Customer and employee engagement
5.4. New products and services
The literature review results show that the strategic use of AI
technologies for customer and employee engagement has not been well As stated by the literature review results, the use of AI aligned with
exploited yet, since few papers discussed customer experience im- business strategy to create new products or services was covered just by
provement. Although Bhāle (2019) and Duan, Xiu et al. (2019) showed three papers. Blitz and Kazi (2019) discussed the use of AI to enable
that the use of AI in customer relationship generated value to business machine-to-machine communication in new business opportunities, but
and Sujata et al. (2019) and Zaki (2019) presented a theoretical dis- they did not validate their ideas. In contrast, some studies argued that
cussion about the use of AI to enhance the customer experience, the enterprises have received the benefits with the development of new
results are not generalizable because the use of AI interaction with products and offering of new services (Davenport & Ronanki, 2018;
humans is complex (Caputo et al., 2019). Among the reasons for this Davenport, 2018; Marr & Ward, 2019). For Barro and Davenport
complexity, humans may not like to notice they are being served or (2019), AI tools can drive innovation deeper into business and this is
understood by a machine (Bhāle, 2019). Thus, this type of reaction can the greatest impact of intelligent technologies. Huang and Rust (2018)
negatively affect the business (Lichtenthaler, 2019). Therefore, the in- argue that artificial intelligence (AI) is increasingly reshaping the ser-
teraction of customers and AI applications using an appropriate digital vice, performing various tasks, constituting a major source of innova-
strategy requires further research. In this context, the following pro- tion ant creating opportunities for innovative human–machine in-
position was e established: tegration.
Therefore, there is a need to understand how managers can create
Proposition 2. . The use of the new generation of AI technologies can
competitive and cognitive strategies aiming to innovate by using the
create competitive advantages by improving customers’ experience and
potential of the new generation of AI. It is thus relevant to discover
engagement through the applications designed based on digital
human emotions, behaviors and needs that drive the motivations to
strategy.
interact services and products based on cognitive technologies.
The interface between employees and AI technologies was also ad- Proposition 5 regards this challenge.
dressed by the literature, indicating issues about the AI use in organi-
Proposition 5. . Competitive and cognitive strategies must be aligned
zational contexts due to the possible deep change in workforce and
to successfully use AI new generation in order to create innovative
consequent job reduction; the lack of confidence in AI decisions, re-
products and solutions.
commendations and responses (Bean, 2019; Davenport, 2018; Khakurel
et al., 2018; Ransbotham et al., 2018; Wilson & Daugherty, 2018; Barro
& Davenport, 2019; Caputo et al., 2019; Lichtenthaler, 2019). Hence, 6. Conclusion
there is a need for investigating digital strategies to reduce the negative
impacts of AI use while improving employees’ engagement (Duan, Xiu AI technologies have occupied a prominent position in organiza-
et al., 2019; Kiron & Schrage, 2019; Lichtenthaler, 2020a, 2020b). The tional contexts. This hype is partly due to its potential demonstrated by
proposition below was thus defined: reports from leading consultancies or technology providers and white
papers. In turn, great expectation is related to the business competitive
Proposition 3. . Enterprises can obtain competitive advantages by
scenario. For this reason, there is an increasing demand for researches
using the new generation of AI technologies with an appropriate digital
on the strategic use of AI to obtain competitive advantages.
business strategy to increase employees’ engagement.
Thus, this paper aimed to investigate the connection between AI
usage and business strategy through a systematic literature review.
5.3. Automation Hence, the relevant literature to the theme was analyzed to synthetize
the results and to contribute to the current state; to identify benefits,
In the sample of articles studied, the theme automation was dis- challenges, knowledge gaps; and to indicate propositions to future re-
cussed in only a few papers (Caputo et al., 2019; Bhāle, 2019; Miklosik searches (Table 5). This study also contributes with a conceptual fra-
et al., 2019; van Esch & Black, 2019; Black & van Esch, 2020). This may mework (Fig. 9) that highlights these gaps for future works and helps to
be because, in the past, automation was typically associated with effi- understand the interplay between the use of AI technologies and busi-
ciency improvement to reduce costs rather than obtaining competitive ness strategy. In the framework, this interplay was expressed in terms of
advantage (Farbey, Land, & Targett, 1995; Laurindo, 2008; Satell, business value creation sources. In this direction, the strategic use of AI
2017). was addressed by the literature in the following ways: (i) to help the
12
Table 5
Summary of benefits, challenges and research opportunities.
Sources of Value Benefits Challenges Research opportunities
Creation
Decision support Considering big data and the need for speed to Some AI technologies need a human expert in the Proposition 1. The adjustment of the AI-
conduct business, deep learning techniques can problem domain to establish a hypothesis and to human equation in alignment with business
extract patterns from data a human being cannot, select relevant features, but the fear of job needs and digital strategies is important for
due to the volume and velocity of data elimination can lead humans being unwilling to companies to successfully implement
generation. In addition, AI can make better provide useful information to AI model creation. applications based on the new generation of AI
decisions than humans in some contexts and The cognitive AI technologies do not allow human technologies.
humans can decide better when judgment is beings to understand and to explain its behavior in
required. many cases.
Customer and AI technologies can create competitive Possible deep changes in workforce and consequent Proposition 2. Enterprises can obtain
employee advantages by improving customers’ experience job reduction; and the lack of confidence in AI competitive advantages by using the new
engagement and engagement through the applications decisions, recommendations and responses. generation of AI technologies with an
designed based on digital strategy appropriate digital business strategy to
increase employees’ engagement.
Proposition 3. The use of new generation of
AI technologies can create competitive
advantages by improving customers’
experience and engagement through the
applications designed based on the digital
strategy.
Automation The most common type of AI application in A digital business strategy is necessary to achieve Proposition 4. The use of the new generation
organizations, due to its ease of implementation benefits through AI use in automation. of AI tools in alignment with a well defined
and rapid return on investment. It is necessary to establish and to develop digital business strategy that considers
Allows firm human resources to focus their capabilities that involve business rules to harness business needs and rules can enable
attention on the most productivity processes. automation to obtain advantages. automation to generate competitive advantage
for the organization.
New products and Deeper innovation in business with the Discover the human beings’ emotions, behaviors Proposition 5. Competitive and cognitive
services offering development of new products and offer of new and needs that drive the motivations to interact strategies must be aligned to successfully use
services based on the cognitive potential of the with services and products based on cognitive the new generation of AI to create innovative
new generation of AI. technologies. products and solutions.
decision making process in the perspective of decision support; (ii) to CRediT author statement
improve customer relationship in the automation, customers and em-
ployees engagement dimensions; and (iii) to enable machine-to-ma- Aline F. S. Borges: Conceptualization, Methodology, Formal ana-
chine communication in the dimension of new products and services lysis, Investigation, Data Curation, Writing- Original draft,
offering. Visualization, Writing- Reviewing and Editing
These findings are relevant to both theoretical and managerial Fernando J. B. Laurindo: Validation, Investigation, Writing- Original
perspectives, with extensive opportunities for generating novel theory draft, Visualization, Supervision, Project administration, Wrciting-
and new forms of management practices. As regard theoretical im- Reviewing and Editing
plications, the results indicated that the strategic use of AI technologies Mauro M. Spínola: Validation, Writing-Original draft, Visualization,
has not been well explored by literature yet, despite the appeal to di- Supervision, Writing- Reviewing and Editing
gital and cognitive strategies to take competitive advantages of the AI Rodrigo F. Gonçalves: Validation, Writing-Original draft,
working with humans. Therefore, given the rise of AI in the digital era, Visualization, Supervision, Writing- Reviewing and Editing
there is still plenty to investigate about the planning and management Claudia A. Mattos: Validation, Investigation, Writing-Original draft,
of the new generation of AI in different contexts at diverse scales and Visualization, Writing- Reviewing and Editing
business scopes.
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International Journal of Information Management

The strategic use of artificial intelligence in the digital era: Systematic

ARTICLE INFO ABSTRACT

2.2. Artificial intelligence in organizations

In the organizational perspective, the studies proposed in the early

AI adoption. 4.1. AI tools and business strategy

Fig. 3. Number of papers in each phase of the selection process.

Fig. 4. Number of papers published by year.

Fig. 6. Number of articles by category of AI discipline found in the sample

with the enterprise strategy.

human intelligence and artificial intelligence.

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