The Human Side of Generative Artificial Intelligence in Business Model Innovation

This set of vocabulary flashcards covers key concepts, theoretical frameworks, and research findings from the study of how strategy professionals integrate Generative AI into business model innovation.

Artificial Intelligence (AI)

A highly capable and complex technology that aims to simulate human intelligence.

Generative Artificial Intelligence (GenAI)

A type of AI that employs deep learning models to synthesize various types of content, including text, code, audio, visual, and three-dimensional entities, in response to user prompts.

Business Model Innovation (BMI)

A strategic process to change the way in which firms create, distribute, and/or capture value.

Automation

A process whereby machines execute a formerly human task with little to no further involvement of human actors with the intent of enhancing efficiency, rationality, and comprehensiveness.

Augmentation

Close human collaboration with machines (e.g., AI) to perform a task to enhance and complement human abilities like intuition and machine abilities like high-speed data processing.

Hybrid Intelligence

A synergistic relationship between humans and machines where each has complementary strengths that can be combined to augment each other.

Reflexive Augmentation

The deliberate, critical engagement of a human actor with GenAI in innovation contexts to decide which tasks should or should not involve GenAI and which tasks to automate or augment.

Onstage Activities

Activities performed together with representatives of the client company that are directly visible and generally considered more valuable and core to why consultants are hired.

Backstage Activities

Activities performed without representatives of the client company being present, typically involving supportive tasks like research or the synthesis of information.

Predictive AI

The precursor of Generative AI (GenAI) that lacks its generative nature and was typically entrusted with well-structured, routine analytical tasks.

Prompts

Natural language instructions used to provide the GenAI with context and guide its response generation.

Reflective Practice

A concept established by Donald A. Schön describing how professionals engage in "conversations with the situation" to adapt, learn, and improve their practice.

"Big Ideas"

Ideas with truly transformational potential in relation to a particular industry, such as reshaping industry boundaries or bringing together participants from other ecosystems for visionary solutions.

Bounded Rationality

The human cognitive limitation that machines can help overcome through high-speed processing of massive amounts of data and complex pattern recognition.

Inscrutability

A limitation of GenAI refers to the opaqueness of the process it uses to source and create a specific output, often described as its "black box" nature.

AI-in-the-loop

Workflows in which humans and AI systems collaborate, specifically characterized by iterative human input for creative problem-solving or idea generation.

Jagged Technological Frontier

A term describing the condition in which the capabilities of AI are constantly and unevenly evolving, requiring ongoing reflection on its utility.