An empirical exploration of the role of artificial intelligence in enhancing innovation performance in organisations

Despite the recent attention on the implications of artificial intelligence (AI) for businesses, there is a deficit of studies exploring how AI and cognitive technologies can transform the innovation function in established organisations, and the extent to which AI can augment innovation activities involving experiential, unstructured and tacit (rather than explicit) knowledge. To fill this gap, we build on the concepts of innovation modes – STI and DUI modes – and innovation process archetypes – innovation adoption and generation – to investigate the relationship between different forms of innovation activities, innovation performance, and the use cognitive technologies (which includes AI). We draw on a survey on technology management and innovation activities from 197 publicly listed Australia firms, which was complemented with secondary financial data and analysed using a battery of regression models. The results indicate a positive significant relationship between the use of cognitive technologies and innovation performance. We also found that the use of cognitive technologies positively moderates the effect of STI mode on innovation performance, particularly when performance is measured by the introduction of product innovations, suggesting that cognitive technologies provide greater support for innovation activities when they involve new product development based on science-based and technical knowledge. These findings have a number of theoretical, managerial and policy implications around the use of AI to enhance innovation productivity in organisations