Digital product success under the microscope: When artificial intelligence in projects helps - and when it hurts

Area of Science:

• Management Science
• Digital Transformation
• Innovation Management

Background:

• Organizations face challenges in achieving consistent digital product success amidst a dynamic landscape.
• Key management factors influencing digital product outcomes require investigation, especially concerning artificial intelligence (AI) integration.

Purpose of the Study:

• To investigate the influence of customer-driven product development, open innovation networks, organizational digital agility, and AI-integrated project management on digital product success.
• To analyze the dual role of AI as both an enabler and potential constraint in digital product development.

Main Methods:

• Quantitative survey of 239 professionals in product-related roles across diverse industries and regions.
• Data analysis using linear regression, moderation analysis, and non-parametric testing to assess direct and interaction effects.

Main Results:

• Customer-driven product development, open innovation networks, and organizational digital agility significantly positively impact product success; customer-driven development is the strongest predictor.
• AI-integrated project management showed no significant direct effect on product success.
• AI negatively moderates the relationship between open innovation networks and product success, potentially diminishing creative collaboration.

Conclusions:

• Strategic integration of AI in digital product development is complex; AI's impact on innovation is context-dependent.
• Hybrid models where AI complements human expertise are crucial for resilient, customer-centric, and innovation-driven digital product strategies.
• Findings offer guidance for organizations navigating AI-enhanced product development environments.