Artificial intelligence and the changing sources of competitive advantage

Abstract Research Summary We apply a resource‐based view to investigate how the adoption of Artificial Intelligence (AI) affects competitive capabilities and performance. Following prior work on using chess as a controlled setting for studying competitive interactions, we compare the same players’ capabilities and performance across conventional, centaur, and engine chess tournaments. Our analysis shows that AI adoption triggers interrelated substitution and complementation dynamics, which make humans’ traditional competitive capabilities obsolete, while creating new sources of persistent heterogeneity when humans interact with chess engines. These novel human‐machine capabilities are unrelated, or even…

• NS
  National Science Foundation
• JW
  Jan Wallanders och Tom Hedelius Stiftelse samt Tore Browaldhs Stiftelse

  Award: W20‐0036
• SN
  Schweizerischer Nationalfonds zur Förderung der Wissenschaftlichen Forschung

  Awards: 185164, 181364
• UD
  Université de Genève