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The role of artificial intelligence and data network effect for creating user value

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Gregory, Robert Wayne, Henfridsson, Ola, Kaganer, Evgeny and Kyriakou, Harris (2021) The role of artificial intelligence and data network effect for creating user value. Academy of Management Review, 46 (3). pp. 534-551. doi:10.5465/amr.2019.0178 ISSN 0363-7425.

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Official URL: http://dx.doi.org/10.5465/amr.2019.0178

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Abstract

Some of the world’s most profitable firms own platforms that exhibit network effects. A platform exhibits network effects if the more people that use it, the more valuable that it becomes to each user. Theorizing about the value perceived by users of a platform that exhibits network effects has traditionally focused on direct and indirect network effects. In this paper, we theorize about a third type of network effects—data network effects—that has emerged from advances in artificial intelligence (AI) and the growing availability of data. A platform exhibits data network effects if the more that the platform learns from the data it collects on users, the more valuable the platform becomes to each user. We argue that there is a positive direct relationship between the AI capability of a platform and the value perceived in the platform by its users—a relationship that is moderated by platform legitimation, data stewardship and user-centric design.

Item Type: Journal Article
Subjects: Q Science > Q Science (General)
Q Science > QA Mathematics > QA76 Electronic computers. Computer science. Computer software
T Technology > TA Engineering (General). Civil engineering (General)
Divisions: Faculty of Social Sciences > Warwick Business School
Library of Congress Subject Headings (LCSH): Artificial intelligence, Ambient intelligence
Journal or Publication Title: Academy of Management Review
Publisher: Academy of Management
ISSN: 0363-7425
Official Date: 1 July 2021
Dates:
DateEvent
1 July 2021Published
3 March 2020Available
21 February 2020Accepted
Volume: 46
Number: 3
Page Range: pp. 534-551
DOI: 10.5465/amr.2019.0178
Status: Peer Reviewed
Publication Status: Published
Access rights to Published version: Restricted or Subscription Access
Copyright Holders: Copyright 2020
Date of first compliant deposit: 10 March 2020
Date of first compliant Open Access: 3 March 2021
Is Part Of: 1

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