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Research on the role of Large Language Models (LLMs) in business models andservices is limited. Previous studies have utilized econometric models,technical showcases, and literature reviews. However, this research ispioneering in its empirical examination of the influence of LLMs at the firmlevel. The study introduces a detailed taxonomy that can guide further researchon the criteria for successful LLM-based business model implementation anddeepen understanding of LLM-driven business transformations. Existing knowledgeon this subject is sparse and general. This research offers a more detailedbusiness model design framework based on LLM-driven transformations. Thistaxonomy is not only beneficial for academic research but also has practicalimplications. It can act as a strategic tool for businesses, offering insightsand best practices. Businesses can lev-erage this taxonomy to make informeddecisions about LLM initiatives, ensuring that technology in-vestments alignwith strategic goals.

Towards a Taxonomy of Large Language Model based Business Model Transformations