Background
This paper explores the impact of firms’ AI focus on the uniqueness of their strategies. On the one hand, AI can enhance core competences and enable firms to craft more unique strategies. On the other hand, its general-purpose nature and widespread diffusion may induce convergence, undermining strategy uniqueness. Integrating these opposing forces, we theorize an inverted U-shaped relationship between firms’ AI focus and strategy uniqueness: moderate levels of AI focus enhance strategy uniqueness, whereas excessive focus leads to homogenization. We further argue that AI pressure from new start-up entrants moderates this relationship, as it diminishes the benefits of AI to generate competitive advantage, ultimately flattening the inverted U[1]shaped curve. Based on a sample of S&P 500 firms from 2014 to 2022, we find robust support for both the proposed curvilinear effect and the moderating role of AI pressure. We contribute to the emerging debate on AI and competitive advantage, and challenge the prevailing assumption that AI primarily enhances competitive advantage
Approach
We test our hypotheses on a panel dataset of S&P 500 firms from 2014 to 2022.
Project publications and presentations
Weck, M., Ademi, E., Fabian, N., Tumasjan, A. & Oehmichen, J. Striking the Balance: AI Focus and Strategy Uniqueness. Accepted for presentation at the EURAM 2026 Conference, Kristiansand, Norway
Project members