Clough and Wu (2022) provide an interesting and thought-provoking response to their article (Gregory, Henfridsson, Kaganer, Kyriakou) on the role of artificial intelligence (AI) and data network effects for the creation of user value. In this response note, they build upon the points raised by Clough and Wu (2020) to outline three clarifications to their theory of data network effects concerning: 1) conditions when data network effects accrue; (2) the importance of theorizing shared data; and (3) the model's ability to explain the cumulative effect of data-driven learning on value creation and value capture.
