Leveraging Artificial Intelligence For Sustained Organizational Competitive Advantage : A Study In Natural Language Processing And Dynamic Capabilities

Sammanfattning: Technologies such as Artificial Intelligence (AI) and Machine Learning (ML)are disrupting industries worldwide and are being categorized as drivers of a technological revolution. The economic impact is hypothesized to amount to hundreds of billions of US dollars in losses of wages, affecting governmental tax revenue streams consequentially. Firms that manage to leverage these technologies by developing sustained competitive advantage are ultimately the firms that will prosper. Competitive advantage stems from the dynamic capabilities, characterizing the organizational and managerial processes in place to withstand the effects of external environmental turbulence, as with the technological revolution galvanized by AI. This research aimed to analyze how a tele- & cloud-communication company manages to leverage AI to materialize competitive advantage. The research was conducted in two principal parts. First, by developing an ML model for language agnostic document retrieval (LaDPR) and evaluating the performance vs. Facebook’s Dense Passage Retrieval (DPR) model. The ML experiments show that the developed LaDPR model outperforms Facebook’s DPR model by over 2x on average, on multilingual document retrieval. This performance increase rises to over 4x when excluding English, which is the language that DPR was trained on. Secondly, interviews were conducted with key representatives to research how such technological advancements can be exploited in the organizational goal for competitive advantage. Specific vital capabilities such as automated decision-making, knowledge integration, and platform maturity are the three prominent organizational and managerial processes that advanced AI systems can undergird. The results pinpoint that the process of a high-technology department focused solely on developing such AI systems, packaging them with engineering competence to then transfer ownership internally in the organization, ultimately coalesce into hard-to-imitate dynamic capabilities, materializing competitive advantage.