Path Dependency Theory and the Shift to Artificial Intelligences: An Analysis on the Service Industry

Based on the path-dependency theory, this article provides an increasing return analysis on the artificial intelligence technology. Since this new technology has yet lacked a historical background, this article focuses on increasing returns analysis rather than the evolutionary and sequence analyses of the path dependency theory. This article aims to analyze the constitutive dynamics and reasons of anxiety; as well as, expectations, perceptions and constraints emerged during the early phases of innovation and change. Therefore, this article enables us to understand the reasons of path dependency, by focusing on constraints, concerns and anxieties towards innovation and change. This article analyzes the research data with the following three aspects: (1) Technology, innovations and technological change; (2) Past knowledge and knowledge base, past experiences, impressions, culture, perceptions, preferences, and abilities; (3) Operations and processes that operate regularly with routines. This article is based on the document analysis and qualitative analysis qualified with 10 face-to-face interviews with service industry professionals. This article reveals the following problem areas: (1) The lack of information about Industry 4.0, (2) That the change is unforeseeable and unpredictable, (3) Adaptation problems and (4) Infrastructural problems, (5) The cost of new technology, (6) The desire and will of the actors to new technology, (7) The need for training of employees in the field of artificial intelligence and big data