Profiting from AI: Evidence from Ericsson’s Pursuit to Capture Value

Journal article, 2025

This article explores the challenges faced by companies in profiting from artificial intelligence (AI). The case of Ericsson highlights that, while AI holds great promise, realizing returns on investment in AI is difficult. The article identifies two main strategies: bottom-line improvements, which focus on internal efficiency gains, and top-line growth, which involves creating new businesses enabled by AI. The latter strategy is particularly challenging given the need for co-specialized complementary assets, which amplify challenges related to data, capabilities, and value. This study of Ericsson’s efforts emphasizes the importance of having clear strategic objectives and a deep understanding of complementarities to implement AI successfully.