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How organizations can innovate with generative AI

Citation. Holmström, J., & Carroll, N. (2025). How organizations can innovate with generative AI. Business Horizons, 68(5), 559–573. https://doi.org/10.1016/j.bushor.2024.02.010

Summary. This peer-reviewed conceptual article offers a typology for organizing generative-AI innovation around the degree of automation and augmentation. It distinguishes Traditional Tool, Basic Automation, Automated Assistance, and Assisted Augmentation strategies, and relates each to different risks, challenges, and management tactics. The article is a framework rather than a test of comparative outcomes.

Key claims

  • GenAI innovation strategies can be classified by whether automation and augmentation are low or high, yielding four generic configurations: Traditional Tool, Basic Automation, Automated Assistance, and Assisted Augmentation.
  • Aligning innovation objectives with a specific automation–augmentation configuration can make the risks, challenges, and tactics of GenAI innovation more explicit rather than treating GenAI adoption as a uniform intervention.
  • The framework distinguishes streamlining operational efficiency from enhancing creative processes, so organizations should not infer one strategy’s benefits or risks from another’s.

Evidence & limitations

  • Conceptual peer-reviewed article that develops a typology from prior literature and illustrative examples; it does not provide a comparative empirical test of the four strategies.
  • The unusable Jina markdown artifact in triage was a DOI 404 page; it was replaced with the verified 15-page CC BY publisher-version PDF from the Umeå University repository before this record was created.

Feeds

  • ai-adoption
  • work-redesign
  • Proposed new topic: generative-ai-innovation-strategies — the automation–augmentation typology addresses organization-level innovation strategy more directly than the current adoption or work-redesign pages.