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Unlocking value from AI in financial services: strategic and organizational tradeoffs vs. media narratives

Lanzolla, G. ORCID: 0000-0002-6590-2668, Santoni, S. ORCID: 0000-0002-5928-3901 & Tucci, C. L. (2021). Unlocking value from AI in financial services: strategic and organizational tradeoffs vs. media narratives. In: Pagani, M. & Champion, R. (Eds.), Artificial Intelligence for Sustainable Value Creation. (pp. 70-97). Cheltenham, UK: Edward Elgar. doi: 10.4337/9781839104398.00014


One of the sectors that AI is expected to transform more radically is financial services. In this Chapter, first, building on the extant literature, we develop a general conceptual model of the strategic and organisational tradeoffs inherent in extracting value from AI. Second, we use a topic modelling approach on two sources of data (a “corpus” of articles published in the global business press and a “corpus” of web articles concerning AI in financial institutions located in the City of London) to identify the narratives about AI in financial services from 2013 to 2019. The comparison between our model of AI value creation and the narratives emerging from our topic models reveals a significant divide. We elaborate on the implications of this divide and we offer suggestions on how to manage AI adoption for value creation.

Publication Type: Book Section
Additional Information: This is a draft of an article. The final version is available in Artificial Intelligence for Sustainable Value Creation edited by Margherita Pagani and Renaud Champion, published in 2021, Edward Elgar Publishing Ltd, The material cannot be used for any other purpose without further permission of the publisher, and is for private use only.
Publisher Keywords: AI; business model; strategic tradeoffs; organisational tradeoffs; AI media narratives; financial services
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
P Language and Literature > PN Literature (General)
Q Science > QA Mathematics > QA75 Electronic computers. Computer science
Departments: Bayes Business School > Management
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