%0 Journal Article %J Technology Innovation Management Review %D 2019 %T Artificial Intelligence for Innovation in Austria %A Erich Prem %K AI %K AI innovation management %K artificial intelligence %K Austria %K innovation %K SME %X It has been claimed that Artificial Intelligence (AI) carries enormous potential for service and product innovation. Policy makers world-wide nowadays aim to foster environments conducive for AI-based innovation. This paper addresses the current lack of empirical data for evidence-based innovation policies and the management of AI-based innovation. It focuses on “AI and innovation management” in addressing the question whether innovation that is based on new AI technology requires a management approach different from other forms of IT innovation. We present results from a study of Austrian companies on the degree of use and implementation of AI, and on challenges related to AI-based innovation management. This study used a keyword-list approach to define “Artificial Intelligence” and to find AI-based innovation projects in research databases. These projects facilitated the identification of experts from organisations developing AI-based innovation. In total, eleven experts were interviewed about their AI-based innovation activities. The results show that AI is a very fast emerging technology that is being applied in many sectors. A broad range of innovative solutions are being developed and some have already reached the market. Specific AI business models are, however, less clear and still developing. Companies are facing multiple challenges from regulation to human resources and data collection. Managing AI-based innovation will be particularly difficult for smaller enterprises, where problems are often more pronounced than in larger industries. Explicit challenges for managing AI-based innovations include the necessary attention to managing expectations and ensuring historic metadata expertise essential for many AI-based solutions. Policies to support AI-based innovation therefore should focus on human aspects. This includes increasing the availability of AI experts, but also concerns the development of new job profiles, such as experts in AI training. AI innovators also require clear AI regulation and research investments in key challenges, such as explainable AI. %B Technology Innovation Management Review %I Talent First Network %C Ottawa %V 9 %P 5-15 %8 12/2019 %G eng %U timreview.ca/article/1287 %N 12 %1 eutema gmbH Dr. Erich Prem is chief RTI strategy advisor and CEO of eutema GmbH. He is an expert in international research and innovation management with a focus on information technology. Erich Prem is a certified managerial economist and works scientifically in artificial intelligence, research politics, innovation research, and epistemology. He has published more than 70 scientific articles and was a guest researcher at the Massachusetts Institute of Technology. He received his Dr. phil. (epistemology) from the University of Vienna, and his Dr. tech. (computer science) from TU Vienna, where he also completed his master’s in computer science (Dipl. Ing). He received his MBA in General Management from Donau University. He is a lecturer at TU Vienna’s Informatics Innovation Center. %& 5 %R http://doi.org/10.22215/timreview/1287