Guidance for Formulating an AI Strategy: A Taxonomy for Organizational Strategic Perspectives Towards AI

Abstract

The transformative force of artificial intelligence in the business landscape drives organizations through disruptive changes while offering huge potential. However, many organizations struggle to integrate AI effectively to enable a substantial impact, of ten due to the absence of a holistic integration and clearly defined AI strategy. Therefore, we applied an iterative taxonomy development process within the Design Science Research paradigm based on a systematic literature review, expert interviews with eleven organizations, and a real-life use case analysis within five industries. The taxonomy offers a comprehensive overview and classification for a strategic perspective and supports formulating an AI strategy by classifying the relevant aspects. We defined seven meta-dimensions: value activities, strategy and management, enablement, impact measurement and investment, technological infrastructure, people and competencies, and ethics and regulation. Further, it provides practitioners with a tool that serves as a starting point for promoting the integration of AI, supporting better AI adoption.