What is an AI-driven enterprise?

A working definition from MIT Sloan

AI-driven enterprise (noun)

An entrepreneurial venture that embeds artificial intelligence into strategy, operations, and talent to achieve repeatable, scalable capabilities beyond traditional startup limitations.

There have historically been two broad models of entrepreneurship: 

  1. Small and midsized enterprises, which are typically local businesses with a handful of employees
  2. Innovation-driven enterprises, which are built around novel ideas and have global ambitions

Now there’s a third startup business model, says MIT Sloan senior lecturer Paul Cheek: the AI-driven enterprise. These ventures put artificial intelligence at the core of their operations while integrating the leanness of SMEs and the innovation and growth orientation of IDEs. Using advanced technologies like generative AI and automation bots, these nascent businesses are able to iterate and scale more quickly and nimbly than traditional startups.

“AI’s role in startup efficiency is to automate the means of innovation, freeing human founders to focus on the ends,” writes Cheek, a senior adviser at the Martin Trust Center for MIT Entrepreneurship, in a blog post.

AI is “a force-multiplier for human talent,” allowing small teams to accomplish what once demanded hundreds of employees. More broadly, it enables innovation-driven entrepreneurship to flourish beyond well-funded or well-located entities. “With AI leveling the field, any region or individual with the right knowledge can potentially build the next big thing,” Cheek writes.

AI-Driven Enterprises: How AI is Redefining Innovation-Driven Enterprises

Working Definitions: Entrepreneurship

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