Mechanisms of GenAI: A Strategic Framework for Digital Platforms
Analyzing how Generative AI transforms platform governance, democratizes innovation, and redefines value creation in ecosystem economies.
Executive Summary
More than a feature, Generative AI fundamentally reshapes the architecture of digital platforms. This research identifies four critical drivers of this transformation: Intelligent Automation, Democratization, Hyper-Personalization, and Collaborative Innovation.
By analyzing current Information Systems (IS) literature and platform ecosystem theory, this paper argues that GenAI challenges traditional "boundary resources" (like APIs). It proposes a new governance framework where AI acts as an active mediator, lowering barriers for non-technical creators while simultaneously creating new risks around quality control and bias.
Strategic Mechanisms
- •Intelligent Automation: Moving beyond static tools to AI that actively mediates value creation between platform owners and users.
- •Democratization of Innovation: How lowering technical barriers (via Natural Language Processing) creates an explosion of "complementor" participation.
- •The Governance Paradox: The tension between enabling generative freedom and maintaining quality control (hallucinations/bias) in a non-deterministic system.
About this project
Conducted as an advanced Systems Analysis study at Western Michigan University, this research synthesizes leading Information Systems (IS) literature to propose a novel framework for AI governance in multi-sided platform markets.
Formal Academic Title
"Mechanisms of Generative AI on Digital Platforms: A Framework for Value Creation and Stakeholder Interaction"