Artificial Intelligence and Digital Platforms: Implications for Value Creation and Capture

Abstract

This chapter proposes a framework for assessing the value creation and value appropriation potential of artificial intelligence (AI) on digital platforms. We argue that AI will likely bring significant changes to digital platforms along four key dimensions: market demand, product architecture, ecosystem relationships, and industry architecture. We then derive implications of these changes on a platform's value creation (e.g., through platform scope and platform generativity), and value capture (e.g., through nature of complementarity and locus of control points), linking AI with important platform elements such as co-specialization, complementarity, boundary resources, and standards. Based on these discussions, we characterize some conditions under which AI will amplify or attenuate value creation/capture potential.

Keywords: AI, platform, ecosystem, value co-creation, generativity, boundary resources