Leveraging AI and IoT for Industry Transformation: A Case Study of Tesla's Technological Integration and Strategic Innovation

Authors

  • Mahyar Nezhadkian Henley Business School٫ University of Reading٫ Reading٫ England.
  • Wenxin Zho * Henley Business School٫ University of Reading٫ Reading٫ England.

Abstract

Integrating Artificial Intelligence (AI) and the Internet of Things (IoT) has redefined industries by enhancing operational efficiency, driving innovation, and creating new business models. This study examines Tesla's adoption of these transformative technologies, focusing on their application in autonomous driving, IoT-enabled manufacturing, and connected ecosystems. Using established theoretical frameworks—ToE, Business Model Canvas (BMC), PESTLE, and Disruptive Innovation Theory—this article analyzes the factors influencing Tesla's technology adoption, the impact on its business model, and the macro-environmental forces shaping its strategy. Key findings highlight Tesla's success in leveraging AI and IoT for predictive maintenance, real-time analytics, and personalized customer experiences while addressing regulatory compliance, data privacy, and public skepticism. Broader implications suggest that AI and IoT offer significant opportunities for industries such as healthcare, logistics, and smart cities, provided ethical and scalability concerns are addressed. The insights from Tesla’s journey underscore the need for strategic alignment, innovation-driven culture, and adaptability in achieving technological transformation.

Keywords:

Artificial intelligence, Internet of things, Autonomous driving, Technology adoption, Business model transformation

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Published

2025-03-23

Issue

Vol. 2 No. 1 (2025): Information Sciences and Technological Innovations (ISTI)

Section

Articles

How to Cite

Leveraging AI and IoT for Industry Transformation: A Case Study of Tesla’s Technological Integration and Strategic Innovation. (2025). Information Sciences and Technological Innovations, 2(1), 24-34. https://isti.reapress.com/journal/article/view/29

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