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http://dx.doi.org/10.15813/kmr.2020.21.1.010

The Role and Effect of Artificial Intelligence (AI) on the Platform Service Innovation: The Case Study of Kakao in Korea  

Lee, Kyoung-Joo (가천대학교 사회과학대학)
Kim, Eun-Young (포항테크노파크 경북SW융합진흥센터)
Publication Information
Knowledge Management Research / v.21, no.1, 2020 , pp. 175-195 More about this Journal
Abstract
The development of platform service based on the information and communication technology has revolutionized patterns of commercial transactions, driving the growth of global economy. Furthermore, the radical advancement of artificial intelligence(AI) presents the huge potential to innovate almost all the industrial and economic activities. Given these technological developments, the goal of this paper is to investigate AI's impact on the platform service innovation as well as its influence on the business performance. For the goal, this paper presents the review of the types of service innovation, the nature of platform services, and technological characteristics of leading AI technologies, such as chatbot and recommendation system. As an empirical study, this paper performs a multiple case study of Kakao Group which is the leading mobile platform service with the most advanced AI in Korea. To understand the role and effect of AI on Kakao platform service, this study investigated three cases, including chatbot agent of Kakao Bank, Smart Call service of Kakao Taxi, and music recommendation system of Kakao Mellon. The analysis results of the case study show that AI initiated innovations in platform service concepts, service delivery, and customer interface, all of which lead to a significant decrease in the transaction costs and the personalization of services. Finally, for the successful development of AI, this research emphasizes the significance of the accumulation of customer and operational data, the AI human capital, and the design of R&D organization.
Keywords
Service innovation; Platform business; Artificial intelligence; Chatbot; Recommendation system; Transaction cost theory; Service personalization; Customer data;
Citations & Related Records
Times Cited By KSCI : 4  (Citation Analysis)
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