AI Technology TrendsAgentic AI: The Catalyst for Digital Transformation

Agentic AI: The Catalyst for Digital Transformation

Key Takeaways:

  • Four new business models have been identified for the era of agentic artificial intelligence: Existing+, Customer Proxy, Modular Creator, and Orchestrator.
  • These models are designed to help companies adapt to the changing technology landscape and navigate the opportunities and challenges presented by AI.
  • The original digital business models, identified in 2013, have seen significant shifts in the past 12 years, with companies that lead or participate in a digital ecosystem becoming more prevalent.
  • Companies seeking to adapt to the new business models need to understand where they can create value and how they can represent their customers’ goals through autonomous action.
  • Leaders can start by identifying existing AI-enabled business models that they can scale and the corresponding AI capabilities they need to build.

Introduction to New Business Models
The rapid adoption of artificial intelligence (AI) in all its forms has prompted the development of a new business model framework. According to researchers from the MIT Center for Information Systems Research, "the original digital business models have seen significant shifts in the past 12 years, with companies that lead or otherwise participate in a digital ecosystem becoming far more prevalent than traditional brick-and-mortar sellers." The researchers have identified four new business models for the era of agentic artificial intelligence: Existing+, Customer Proxy, Modular Creator, and Orchestrator. These models are designed to help companies adapt to the changing technology landscape and navigate the opportunities and challenges presented by AI.

The Original Digital Business Models
To understand the new business models, it helps to unpack the old ones first. In 2013, MIT CISR researchers Peter Weill and Stephanie Woerner identified four digital business models: Supplier companies, Omnichannel companies, Modular Producers, and Ecosystem Drivers. These models have seen significant shifts in the past 12 years, with companies that lead or participate in a digital ecosystem becoming more prevalent. As the researchers note, "focusing on firms’ dominant models, supplier and omnichannel business models are much less prevalent today, while companies with ecosystem driver business models have grown from 12% of businesses in 2013 to 58% of businesses in 2025."

The New Business Models
The four new business models for the AI era are designed to help companies adapt to the changing technology landscape. The Existing+ model involves augmenting an existing business model with AI. The Customer Proxy model achieves customer outcomes through predefined processes executed by AI. The Modular Creator model uses AI to assemble reusable modules, including those from third parties, to assist in achieving customer outcomes. The Orchestrator model achieves customer outcomes by using AI to assemble an ecosystem of complementary products and services. As the researchers explain, "these firms achieve customer outcomes (within guardrails) by using AI to assemble an ecosystem of complementary products and services, with no predetermined process."

Case Study: One New Zealand Group
The ongoing transformation of telecommunications provider One New Zealand Group illustrates these business models in action. The company uses AI agents to help answer customers’ frequently asked questions and assist employees in serving customers (the Existing+ model). It also uses AI to act on requests to upgrade plans or create service tickets (Customer Proxy) and to monitor power failures, forecast demand, and recommend action during weather-related service disruptions (Modular Curator). Looking ahead, the company intends to bring autonomous AI agents to marketing operations (Orchestrator), allowing agents to create personalized campaigns and adapt them based on customer responses.

Adapting to the New Business Models
Companies seeking to adapt to the new business models need to understand where they can create value and how they can represent their customers’ goals through autonomous action. As the researchers note, "does your company merely assist customers, or can it represent their goals through autonomous action? Is business execution built on a structured process, or can that process be adapted, with the help of AI agents, based on a customer’s desired outcomes?" Leaders can start by identifying existing AI-enabled business models that they can scale and the corresponding AI capabilities they need to build. By understanding the opportunities and challenges presented by AI, companies can navigate the changing technology landscape and stay ahead of the competition.

Conclusion
The rapid adoption of AI has prompted the development of a new business model framework. The four new business models for the AI era – Existing+, Customer Proxy, Modular Creator, and Orchestrator – are designed to help companies adapt to the changing technology landscape and navigate the opportunities and challenges presented by AI. By understanding these models and how they can be applied in practice, companies can stay ahead of the competition and maintain a competitive edge. As Peter Weill, senior research scientist at MIT Sloan and chairman of MIT CISR, notes, "companies that lead or participate in a digital ecosystem are becoming far more prevalent than traditional brick-and-mortar sellers." By embracing the new business models and leveraging the power of AI, companies can thrive in the digital economy.

https://mitsloan.mit.edu/ideas-made-to-matter/how-digital-business-models-are-evolving-age-agentic-ai

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