AI as the Sixth Force? Revisiting Porter’s Model in the Age of Artificial Intelligence

Abstract

This article analyzes the role of artificial intelligence (AI) as a driver of organizational competitiveness in the digital era by applying Porter’s Five Forces framework. The study reviews literature on competitive strategy and AI, finding that AI not only improves operational efficiency but also reshapes industry dynamics. Specifically, AI affects the intensity of rivalry, the threat of new entrants, the threat of substitutes, and the bargaining power of both suppliers and buyers. The authors introduce a “sixth force,” arguing that AI simultaneously influences all five traditional forces. Case studies from Johnson & Johnson, Cedars-Sinai, and PepsiCo demonstrate how AI enhances supply chains, supports platform economies, and creates sustainable advantages. AI also enables organizations to adapt more quickly to industry changes, reduce risks from substitutes and new entrants, and build deeper customer relationships. Ultimately, the article proposes a “Porter + AI” model that integrates technology and innovation into competitive analysis. Organizations failing to align strategies with AI risk losing their long-term competitiveness.