a) Select an industry of your choice (e.g., banking sector, insurance, healthcare, retail etc.,). Explain how advances in machine learning algorithms and AI may enable firms in the sector to create value and competitive advantage. The analysis must refer to channels through which these technologies enhance performance like be- behavioural targeting in the advertising market, revenue management in the airline industry, Robo-advising in the banking sector and recommender systems in retail.
a) Select an industry of your choice (e.g., banking sector, insurance, healthcare, retail
etc.,). Explain how advances in machine learning algorithms and AI may enable
firms in the sector to create value and competitive advantage. The analysis must refer to channels through which these technologies enhance performance like be- behavioural targeting in the advertising market, revenue management in the airline
industry, Robo-advising in the banking sector and recommender systems in retail.
b) Explore how the rise of AI algorithms may affect a firm’s business model in the sector and shape its growth and competition strategies. In general, how will algorithmic firms grow and compete with each other?
c) Explore how the rise of AI algorithms will likely shape the internal organisation of the firm (e.g., the firm’s hierarchical decision structure), change the role of middle and top managers in the firm, and affect the firm’s capital structure and shape its boundaries.
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