Seizing AI: Dynamic Seizing Capabilities in Emerging Technology Markets. The Case of Artificial Intelligence Adoption by German Influencer Marketing Agencies

In the rapidly evolving influencer marketing landscape, German influencer marketing agencies face significant challenges and opportunities with the integration of artificial intelligence (AI). This exploratory study delves into how these agencies adapt to AI-driven technologies, employing the dynamic capabilities framework, particularly the concept of seizing capabilities. Drawing from 18 in-depth interviews with agency leaders and marketing experts conducted in 2024, the study seeks to understand how AI transforms industry practices. The findings reveal that agencies leverage AI to optimize processes and enhance efficiency. However, dynamic seizing capabilities are characterized by a predominantly decentralized and agile approach to knowledge absorption, decision-making, and implementation. Agencies frequently employ a trial-and-error methodology, driven by both top-down and bottom-up processes, reflecting the dynamic nature of this emerging media technology market. Despite the innovative potential of AI, current agency practices are focused more on operational improvements than business model transformation, where they intensively draw on their flexible, agile organizational culture. Strategic partnerships, crucial for deeper AI integration, remain underutilized, including co-creative approaches with clients. Moreover, data protection and security concerns prominently influence AI adoption strategies, necessitating structured guidelines and regulations. Agencies recognize the potential for AI to reshape their value propositions, with the aim of transitioning back towards more creativity-focused and consultative. However, tangible shifts in business models have yet to be realized. This study underscores the importance of existing business models and a firm's position in the value chain for dynamic seizing capability formation.