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What is the difference between an AI business strategy and a digital business strategy according to the chapter?

An AI business strategy explicitly builds on machine learning's unique characteristics, while a digital business strategy typically treats AI as a regular IT application and does not account for those specific traits. The book distinguishes the two because the strategic use of self-learning AI systems requires addressing challenges not covered by general digital strategy approaches.

According to the chapter, an AI business strategy is more specific than a digital business strategy. It is designed around the inherent working mechanisms of machine learning and accounts for capabilities like autonomous learning. A digital business strategy, by contrast, is more general and vague, usually regarding an AI system as just another IT application. Because self-learning AI systems present unique adoption and implementation challenges, the book argues that they need a dedicated strategic approach rather than being folded into a conventional digital strategy.

Key points

  • An AI business strategy explicitly builds on the unique characteristics of machine learning.
  • A digital business strategy usually treats an AI system like a regular IT application.
  • Existing digital business strategy approaches do not account for machine learning's very specific characteristics.
  • The strategic use of self-learning AI systems creates new challenges beyond those of other digital systems.
Source:AI Business Strategy: A Managerial Guide to Success· Fundamentals for dealing with AI business strategies· p. 10–25

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