Competing in the Age of Algorithmic Intermediation: A Dynamic Capabilities Framework for Algorithmic Readiness

AI AgentsArtificial Intelligence (AI)Working Papaer
Written By Paul F. Accornero

Abstract

As autonomous AI agents increasingly intermediate commercial transactions, organizations confront a fundamental strategic challenge: competing when algorithms, not humans, evaluate and select suppliers. We develop the construct of algorithmic readiness—organizational capacity to compete effectively in AI agent-mediated markets—grounded in dynamic capabilities theory. Through expert interviews with platform strategists and procurement executives, we identify distinctive capability requirements that extend beyond digital maturity. We theorize algorithmic readiness through sensing (detecting when algorithmic evaluation criteria diverge from human preferences), seizing (managing the transparency-protection paradox in data provision), and transforming (operating dual-mode systems for human and algorithmic audiences). We develop testable propositions linking algorithmic readiness to competitive outcomes, specify boundary conditions, and provide preliminary empirical validation. This research addresses critical gaps in understanding organizational adaptation when the nature of the "customer" fundamentally changes.

Keywords: algorithmic readiness, artificial intelligence agents, dynamic capabilities, digital transformation, B2B marketing, platform strategy

Read Full SSRN Article
Paul F. Accornero

Paul F. Accornero is a C-suite leader, global strategist, and the author of the forthcoming book, The Algorithmic Shopper. He currently serves as the Global Chief Commercial Officer for one of the world's market-leading consumer goods companies, where he is a key architect of its global commercial strategy. In this role, he directs a multi-billion-euro business with a P&L spanning over 120 countries and is responsible for the performance of thousands of employees worldwide.

Paul stands at the intersection of classic brand building and the next frontier of commerce. His career has been defined by leading profound organizational and digital transformations for some of the world's most iconic consumer brands. For over a decade at the L'Oréal Group, he was instrumental in shaping commercial policy and strategy across the Asia Pacific region, including serving as Chief Commercial Officer for the Consumer Products Division in P.R. China. Since 2008, he has been a driving force behind the globalization of his current company, spearheading the omnichannel strategies that have successfully navigated the disruption of the digital age. His leadership has a proven track record of delivering exceptional results, including driving revenue growth exceeding.

His unique perspective is not merely academic; it has been forged through decades of hands-on operational experience and senior leadership roles on multiple continents. He has served as CEO, President, or Managing Director for major subsidiaries in the USA, Japan, and Singapore, giving him an unparalleled, ground-level view of the global commercial landscape he deconstructs in his work.

A rigorous strategic framework complements this extensive real-world experience. A graduate of the University of Queensland, Paul completed his postgraduate business studies at Harvard Business School, where he studied disruptive strategy under the world’s foremost thought leaders, including the late Clayton Christensen. This blend of C-suite practice and elite academic insight makes him uniquely positioned to write the definitive playbook for the age of AI-driven commerce.

As an active and respected industry leader, Paul is a Fellow of both the Institute of Directors (FIoD) and the Chartered Institute of Marketing (FCIM) in the UK. He is also a Liveryman of the World Traders Livery Company and a Freeman of the City of London, affiliations that connect him to a deep network of influential business leaders.

The Algorithmic Shopper is more than a book; it is the culmination of a career spent leading on the front lines of commercial evolution.

https://theaipraxis.ai
Previous

When Algorithms are the Customer: Why Systemic Reliability Replaces Relational Capital
Next

The Shopper Has No Eyes: Branding in a World Without Human Perception