Based on a study of 5,000 innovations, New Markets Advisors found that the most transformative initiatives leverage five or more innovation types at once. The same is true for AI. These ten forms of AI innovation — spanning ecosystems, business models, products, and customers — show how companies can re-make industries through multi-dimensional change. Leaders should view these categories as combinable levers that amplify one another to create sustainable competitive advantage.

The 10 Types of AI Innovation include:

• Value Chain: Streamline or automate intermediaries (e.g., Ping An’s digital insurance)

• Partnerships: Combine datasets for new solutions (e.g., Bayer + Microsoft digital farming)

• Revenue Model: Use AI to monetize data or customize pricing (e.g., Hungryroot)

• Cost Structure: Reduce inefficiencies and automate reporting (e.g., Yseop)

• Invention: Generate novel ideas or materials via AI (e.g., DeepMind)

• New Value Propositions: Create hyper-personalized services (e.g., Paloma Learning)

• New Demand: Identify untapped audiences with predictive insight (e.g., NeuraLight)

• Experience: Transform user journeys with personalization (e.g., Nuance)

• Acquisition: Optimize targeting and outreach (e.g., Verix)

• Retention: Predict churn and drive loyalty (e.g., Flyfish)

Together, these innovation routes demonstrate how AI can reinvent how companies create, capture, and deliver value.