AI and IoT Integration in Startups: Unlocking New Business Models and Market Opportunities

Abstract

Artificial Intelligence (AI) and its application is becoming the key trend that determines changes in business models as well as organizational forms, decision-making processes, and the generation of new value. This research aims to examine the way in which AI is being integrated into business models, specifically in terms of ethical, dynamic, and sustainability. In the following, the paper investigates ethical issues in AI, namely transparency and accountability, as well as the transition from fixed to dynamic, data-based organizational models, based on secondary qualitative data. Studious show that AI increases organizational flexibility, leadership decision making and value adding, as well as reshaping the conventional value chains. The manuscript focuses on the challenge of integrating AI capacities with human wisdom for the right and sustainable application of the technology. The knowledge derived from this study will help extend the theory of how AI can affect business model innovation and offer practical recommendations to leaders in the context of AI-driven change. More so as AI advances, business models have to be set to be ethical and sustainable, in order to be future fit in an AI-driven economy.