The interplay of AI and tutors in the language education platform business
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Journal Title
Journal ISSN
Volume Title
School of Business |
Master's thesis
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Author
Date
2024
Department
Major/Subject
Mcode
Degree programme
Strategic Management in a Changing World
Language
en
Pages
67+20
Series
Abstract
Digital platforms facilitate interactions among participants and gain momentum through the “network effect”. These platforms innovate traditional business models by inventing new types of marketplaces. Acting as intermediaries, platforms match buyers and sellers at lower trade costs, thereby improving the frequency and efficiency of transactions. Enterprises employing platform business models, such as Amazon, Uber, and Airbnb, are commonly seen in various business sectors today. However, platform businesses are undergoing transformative changes with the rise of generative artificial intelligence (GenAI). The impacts on platform participants, particularly complementors—those who create complementary goods and services—may intrinsically affect their value. In light of this phenomenon, the aim of this thesis is to explore the impacts of complementor-AI interplay and the strategic implications for platforms within the language education sector. Using a qualitative research design, 17 semi-structured interviews were conducted with tutors from diverse backgrounds on AmazingTalker, a language education platform with a global user base of 2.7 million. Guided by the Gioia methodology, five key dimensions emerged: Values Recognized by Tutors, Adaptation of Instructional Techniques, Challenges Faced in Teaching, Human-AI Nexus, and AI's Evolving Role in Platform Operations. The findings reveal the complexities of tutor-AI interactions and the elements required for an AI adoption strategy with competitive edges. Furthermore, this study uncovers tutors’ anticipations of ensuring that AI enhances rather than undermines human tutor roles. This thesis contributes to the knowledge in the fields of artificial intelligence in education and the platform economy, unveiling both the positive and negative impacts of AI on online tutors within the language education platform context. Additionally, this thesis offers relevant strategic management considerations, such as governance policy flexibility, the demand for complementary features, and the impacts of platform-complementor competition. These considerations are essential for platform planners to foster the innovation and competitiveness of their business models. This study calls for future research to include platforms from various industries and a broader pool of interviewees to enhance inclusiveness and comprehensiveness. This research focus not only enriches the understanding of AI’s impacts on platform businesses but also supports platform participants in their decision-making and strategy development.Description
Thesis advisor
Karhu, KimmoGalkina, Tamara
Keywords
complementor, artificial intelligence, platform economy, language education
