AI Strategic Repositioning in the Era of Generative AI: Evidence from Strategic Portfolios and Strategic Transitions of Korean Firms

Abstract

The emergence of Generative Artificial Intelligence (GenAI) has transformed not only how firms deploy digital technologies but also how they prioritize strategic initiatives. While prior research has primarily focused on AI adoption, investment, and capability development, relatively little attention has been paid to how firms reposition their AI strategies over time. This study examines the evolution of corporate AI strategies in the context of the GenAI era using public disclosure data from Korean listed firms.

A total of 73,596 AI-related sentences were extracted from 7,666 corporate disclosure documents and classified into eight strategic categories: Data Analytics AI, Operational AI, Product-Service AI, Scientific R&D AI, Customer AI, Financial AI, Generative AI, and Governance AI. Based on these classifications, 6,320 firm-year AI strategic portfolios were constructed and analyzed in terms of strategic diversification, dominant strategies, and strategic transitions.

The results show that AI strategic portfolios have become increasingly diversified over time, with a significant acceleration after the emergence of GenAI. More importantly, firms exhibit systematic strategic transitions from broad and general AI positioning toward more specialized domains, particularly Financial AI, Product-Service AI, and Scientific R&D AI. These findings suggest that GenAI functions not merely as a technological innovation but as a catalyst for strategic repositioning by reshaping firms’ strategic attention and resource allocation priorities.

This study contributes to the literature by shifting the focus from AI adoption and capability development to the dynamic evolution of AI strategy portfolios. It also provides evidence that AI-related strategic change in Korean firms is characterized by strategic repositioning rather than simple diversification.