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Although the scientific literature points out that a strategy is key to responding to technological breakthroughs, the three facets of autonomy, learning, and inscrutability that distinguish contemporary AI from previous generations of IT give rise to a novel and distinctive perspective on strategy. Particularly, the facets of contemporary AI lead to AI-induced market and resource shifts and, thus, to AI-related strategic challenges regarding the scope, scale, speed, and source from which organizations make strategic deliberations. This ultimately requires a strategic response from organizations in the form of an AI strategy. Against this backdrop, this study proposes a multi-layer taxonomy with 15 dimensions and 45 characteristics that unveils how organizations currently structure and organize an AI strategy. Conducting a cluster analysis on this foundation, this study further provides four clusters that delineate predominant design options for developing a new AI strategy or evaluating an existing one. In this way, the results contribute to a fundamental understanding of the design space of an AI strategy and enrich recent discussions among researchers and practitioners on how to advance the real-world use of AI.<\/jats:p>","DOI":"10.1007\/s12599-025-00941-7","type":"journal-article","created":{"date-parts":[[2025,5,5]],"date-time":"2025-05-05T05:46:21Z","timestamp":1746423981000},"page":"401-430","update-policy":"https:\/\/doi.org\/10.1007\/springer_crossmark_policy","source":"Crossref","is-referenced-by-count":0,"title":["Conceptualizing the Design Space of Artificial Intelligence Strategy: A Taxonomy and Corresponding Clusters"],"prefix":"10.1007","volume":"68","author":[{"given":"Peter","family":"Hofmann","sequence":"first","affiliation":[]},{"given":"Simon","family":"Meierh\u00f6fer","sequence":"additional","affiliation":[]},{"given":"Leon","family":"M\u00fcller","sequence":"additional","affiliation":[]},{"given":"Anna Maria","family":"Oberl\u00e4nder","sequence":"additional","affiliation":[]},{"given":"Dominik","family":"Protschky","sequence":"additional","affiliation":[]}],"member":"297","published-online":{"date-parts":[[2025,5,5]]},"reference":[{"key":"941_CR1","doi-asserted-by":"publisher","first-page":"420","DOI":"10.17705\/1CAIS.05017","volume":"50","author":"PJ \u00c5gerfalk","year":"2022","unstructured":"\u00c5gerfalk PJ, Conboy K, Crowston K, Eriksson Lundstr\u00f6m JSZ, Jarvenpaa S, Ram S, Mikalef P (2022) Artificial intelligence in information systems: state of the art and research roadmap. 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