Artificial Intelligence (AI) is revolutionizing every facet of the business landscape. Early adopter firms have implemented AI for various reasons, but the number one benefit realized is increased innovation (Jyoti 2) building a robust business case leading to better “go-to-development” investment decisions; and 3) the design, engineering, development, and testing of the product. AI applications in each of these three target areas are described briefly, along with some in-depth case illustrations of AI at work in NPD, and the benefits achieved by leading firms. These benefits include a remarkable reduction in development and testing times; optimally designed products; better and more appealing new product ideas and concepts; and more effective and productive voice-of-customer studies. Despite the reported benefits of AI in NPD, the adoption rate is quite low, about 13% across firms globally (McKinsey, 2023); thus, AI for NPD was in the “early adopter” stage of the Rogers diffusion of innovation curve by early 2023. Impediments to adoption are outlined, based on numerous studies: the lack of a strong business case; high perceived costs of adoption; the lack of corporate readiness and the right mindset; and risks and ethical issues. High uncertainties remain regarding the adoption of AI in NPD, and many unknowns still exist; thus, numerous opportunities for academic research are identified in the form of research questions begging to be answered. The article ends with a call to action, aimed at both practitioners and academics: AI is the most significant innovation in our lifetime! It's time we all got on board.
Robert G. Cooper (Thu,) studied this question.