The impact of Artificial Intelligence adoption on Knowledge Creation processes in Ecosystem-based Business Models

This study examines the paradoxical influence of Artificial Intelligence (AI) adoption on Knowledge Creation (KC) and Sustainability within Ecosystem-Based Business Models (EBMs), a digital-based, sophisticated BM form characterised by the systemic dynamics of dialectical resolution and harmonising aspiration. To capture the intricate tensions of KC process in EBMs, the research is thus grounded in a Yin-Yang dialectical systems perspective and employs panel data from Chinese A-share listed companies (2014–2023) to identify an inverted U-shaped relationship between AI adoption and EBM sustainability. KC’s function in this dynamic is that of a mediator. The findings of this study reveal an apparent paradox about the adoption of AI. While the moderate integration of AI has been demonstrated to enhance knowledge flows, an excessive reliance on AI has been shown to have a detrimental effect on human creativity and adaptability. This is in direct opposition to the commonly held belief that the adoption of AI is inherently beneficial. The paper’s theoretical reflections and empirical observations are supported by systems thinking and they provide researchers and practitioners with a balanced approach to AI deployment in sustainable business ecosystems.