The Effect of Artificial Intelligence Adoption, Machine Learning, and AI Ethics on Product Innovation in Start-ups in Bogor

Authors

  • Afrizal Afrizal STIE Eka Prasetya
  • Hildawati Hildawati STIA Lancang Kuning Dumai
  • Sehan Rifky Pascasarjana UIN Siber Syekh Nurjati Cirebon
  • Arnes Yuli Vandika Universitas Bandar Lampung

DOI:

https://doi.org/10.58812/wsshs.v2i05.906

Keywords:

Artificial Intelligence, Machine Learning, AI Ethics, Product Innovation, Startup Ecosystem, Bogor, Indonesia, SEM PLS

Abstract

This research investigates the influence of artificial intelligence (AI) adoption, machine learning (ML) integration, and AI ethics on product innovation within Bogor's startup ecosystem. A quantitative approach was employed, collecting data through an online survey from 180 startups. Structural equation modeling with Partial Least Squares (PLS) 3 was utilized for data analysis. The results reveal significant positive relationships between AI adoption, ML integration, AI ethics, and product innovation. AI adoption and ML integration positively impact product innovation, while adherence to ethical AI practices also plays a crucial role. These findings highlight the importance of leveraging AI technologies responsibly and ethically to drive innovation within startup ecosystems. Policymakers, entrepreneurs, investors, and other stakeholders can utilize these insights to foster a conducive environment for sustainable growth and innovation in Bogor's startup community.

References

C. Sanderson et al., “AI ethics principles in practice: Perspectives of designers and developers,” IEEE Trans. Technol. Soc., 2023.

H. Bleher and M. Braun, “Reflections on putting AI ethics into practice: how three AI ethics approaches conceptualize theory and practice,” Sci. Eng. Ethics, vol. 29, no. 3, p. 21, 2023.

L. N. Tidjon and F. Khomh, “The different faces of ai ethics across the world: A principle-to-practice gap analysis,” IEEE Trans. Artif. Intell., 2022.

N. Díaz-Rodríguez, J. Del Ser, M. Coeckelbergh, M. L. de Prado, E. Herrera-Viedma, and F. Herrera, “Connecting the dots in trustworthy Artificial Intelligence: From AI principles, ethics, and key requirements to responsible AI systems and regulation,” Inf. Fusion, vol. 99, p. 101896, 2023.

E. J. P. Fisher and E. Fisher, “A Fresh Look at Ethical Perspectives on Artificial Intelligence Applications and their Potential Impacts at Work and on People,” Bus. Econ. Res., vol. 13, no. 3, pp. 1–22, 2023.

T. P. Nugrahanti, N. Puspitasari, I. G. P. R. Andaningsih, and Q. F. E. Soraya, “Transformasi Praktik Akuntansi Melalui Teknologi: Peran Kecerdasan Buatan, Analisis Data, dan Blockchain dalam Otomatisasi Proses Akuntansi,” J. Akunt. Dan Keuang. West Sci., vol. 2, no. 03, pp. 213–221, 2023.

N. B. Thylstrup, K. B. Hansen, M. Flyverbom, and L. Amoore, “Politics of data reuse in machine learning systems: Theorizing reuse entanglements,” Big Data Soc., vol. 9, no. 2, p. 20539517221139784, 2022.

J. P. Bharadiya, “The role of machine learning in transforming business intelligence,” Int. J. Comput. Artif. Intell., vol. 4, no. 1, pp. 16–24, 2023.

U. Khakurel, G. Abdelmoumin, A. Bajracharya, and D. B. Rawat, “Exploring bias and fairness in artificial intelligence and machine learning algorithms,” in Artificial Intelligence and Machine Learning for Multi-Domain Operations Applications IV, SPIE, 2022, pp. 629–638.

S. H. Al Harbi, L. N. Tidjon, and F. Khomh, “Responsible design patterns for machine learning pipelines,” arXiv Prepr. arXiv2306.01788, 2023.

A. N. Khan, F. Jabeen, K. Mehmood, M. A. Soomro, and S. Bresciani, “Paving the way for technological innovation through adoption of artificial intelligence in conservative industries,” J. Bus. Res., vol. 165, p. 114019, 2023.

H. Ailisto, H. Helaakoski, and A. Neuvonen, “Benefits of Machine Learning in the Manufacturing Industry,” 2023.

A. J. Wójcik-Czerniawska, “The Role of Artificial Intelligence in Modern Finance and Sustainable Marketing,” in Handbook of Research on Achieving Sustainable Development Goals With Sustainable Marketing, IGI Global, 2023, pp. 355–371.

D. Mahajan, D. Vatsyayan, and D. Kumar, Decision Strategies and Artificial Intelligence Navigating the Business Landscape. 2023. doi: 10.59646/edbook/009.

R. H. Binsaeed, Z. Yousaf, A. Grigorescu, A. Samoila, R. I. Chitescu, and A. A. Nassani, “Knowledge Sharing Key Issue for Digital Technology and Artificial Intelligence Adoption,” Systems, vol. 11, no. 7. 2023. doi: 10.3390/systems11070316.

R. Rosari, T. P. Nugrahanti, L. S. Noor, M. Muslimin, and A. N. Zaroni, “The Effect of Intellectual Capital on MSME Performance Through Innovation as an Intervening Variable,” Int. J. Soc. Sci. Bus., vol. 8, no. 1, pp. 161–168, 2024.

A. Hanif, “Towards explainable artificial intelligence in banking and financial services,” arXiv Prepr. arXiv2112.08441, 2021.

S. J. Ali, A. Christin, A. Smart, and R. Katila, “Walking the walk of AI ethics: Organizational challenges and the individualization of risk among ethics entrepreneurs,” in Proceedings of the 2023 ACM Conference on Fairness, Accountability, and Transparency, 2023, pp. 217–226.

N. A. Parikh, “Empowering business transformation: The positive impact and ethical considerations of generative AI in software product management–a systematic literature review,” Transform. Interv. Business, Technol. Healthc., pp. 269–293, 2023.

P. Mikalef, N. Islam, V. Parida, H. Singh, and N. Altwaijry, “Artificial intelligence (AI) competencies for organizational performance: A B2B marketing capabilities perspective,” J. Bus. Res., vol. 164, p. 113998, 2023.

A. Polisetty, D. Chakraborty, A. K. Kar, and S. Pahari, “What determines AI adoption in companies? Mixed-method evidence,” J. Comput. Inf. Syst., vol. 64, no. 3, pp. 370–387, 2024.

D. Czarnitzki, G. P. Fernández, and C. Rammer, “Artificial intelligence and firm-level productivity,” J. Econ. Behav. Organ., vol. 211, pp. 188–205, 2023.

N. Kockmann, T. Schindler, and L. Urbas, “AI in Process Industries–Incubator Labs and Use Cases,” Chemie Ingenieur Technik, vol. 95, no. 7. Wiley Online Library, p. 963, 2023.

X. Li, W. Lin, and B. Guan, “The impact of computing and machine learning on complex problem‐solving.,” Eng. Reports, vol. 5, no. 6, p. NA-NA, 2023.

R. Mane, “Start-up Acquisition Status Prediction Using Machine Learning,” Int. J. Res. Appl. Sci. Eng. Technol., vol. 11, pp. 415–420, Jul. 2023, doi: 10.22214/ijraset.2023.54673.

M. Rahmaty, “Machine learning with big data to solve real-world problems,” J. Data Anal., vol. 2, no. 1, pp. 9–16, 2023.

K. Chaitanya, G. C. Saha, H. Saha, S. Acharya, and M. Singla, “The Impact of Artificial Intelligence and Machine Learning in Digital Marketing Strategies,” Eur. Econ. Lett., vol. 13, no. 3, pp. 982–992, 2023.

M. K. Kamila and S. S. Jasrotia, “Ethical issues in the development of artificial intelligence: recognizing the risks,” Int. J. Ethics Syst., no. ahead-of-print, 2023.

P. Hadi, “Effect of product innovation on SME’s performance: The moderating role of organizational learning and market orientation,” Int. J. Bus. Ecosyst. Strateg., vol. 5, no. 2, pp. 47–54, 2023.

B. Ganbaatar, K. Myagmar, and E. J. Douglas, “Using a complex measure of product innovativeness to explain abnormal financial returns,” Int. J. Innov. Sci., vol. 16, no. 1, pp. 138–165, 2024.

J. C. F. De Guimarães, E. A. Severo, and E. C. H. Dorion, “Product innovation: path to sustainable competitive advantage with use of environmental, social and governance principles,” RGC-Revista Governança Corp., vol. 9, no. 1, pp. e0117–e0117, 2022.

Y. Z. Xiao, L. Hajar, and H. K. Hutahayan, “Influence of product innovation strategy on performance of large manufacturing firms in China,” J. Strateg. Manag., vol. 6, no. 4, pp. 16–25, 2022.

R. Gómez-Prado et al., “Product innovation, market intelligence and pricing capability as a competitive advantage in the international performance of startups: Case of peru,” Sustainability, vol. 14, no. 17, p. 10703, 2022.

M. Silajadja, P. Magdalena, and T. P. Nugrahanti, “Pemanfaatan Media Sosial (Digital Marketing) untuk Pemasaran Produk UMKM,” Cakrawala J. Pengabdi. Masy. Glob., vol. 2, no. 2, pp. 88–100, 2023.

G. Priyanga, “The Effects of Artificial Intelligence on Digital Marketing.,” ShodhKosh J. Vis. Perform. Arts, vol. 4, pp. 158–167, 2023.

I. M. Cockburn, R. Henderson, and S. Stern, The impact of artificial intelligence on innovation, vol. 24449. National bureau of economic research Cambridge, MA, USA, 2018.

G. C. Saha, R. Menon, M. S. Paulin, S. Yerasuri, H. Saha, and P. Dongol, “The Impact of Artificial Intelligence on Business Strategy and Decision-Making Processes,” Eur. Econ. Lett., vol. 13, no. 3, pp. 926–934, 2023.

N.-A. Perifanis and F. Kitsios, “Investigating the influence of artificial intelligence on business value in the digital era of strategy: A literature review,” Information, vol. 14, no. 2, p. 85, 2023.

J. Steinhoff, “AI ethics as subordinated innovation network,” AI Soc., pp. 1–13, 2023.

L. J. Wiese, D. S. Schiff, and A. J. Magana, “Being Proactive for Responsible AI: Analyzing Multiple Sectors for Innovation via Systematic Literature Review,” in 2023 IEEE International Symposium on Ethics in Engineering, Science, and Technology (ETHICS), IEEE, 2023, p. 1.

Downloads

Published

2024-05-30

How to Cite

Afrizal, A., Hildawati, H., Rifky , S., & Vandika, A. Y. (2024). The Effect of Artificial Intelligence Adoption, Machine Learning, and AI Ethics on Product Innovation in Start-ups in Bogor. West Science Social and Humanities Studies, 2(05), 799–808. https://doi.org/10.58812/wsshs.v2i05.906