THREATS OR OPPORTUNITIES? ENHANCING FIRM PERFORMANCE IN THE ERA OF GENERATIVE AI

Despite the emerging prominence of generative artificial intelligence in the business community, it presents uncertainties to managers that impede its adoption. We address critical research questions that elucidate the impact of integrating Gen AI within a firm’s existing services on a firm’s proprietary assets, and the financial viability of such a move. We investigate the potential of Gen AI to complement or substitute for existing services, with a focus on its impact on user engagement and its a firm’s profit. Our findings reveal that RAG serves as a complementary asset to Gen AI, enhancing user engagement of existing services.