The AI paradox: Will generative AI enhance or destroy the business model of 99designs.com? (Cartoon case)
99designs.com is a global platform connecting freelance designers with potential clients. The case study examines the potential impact of generative AI on 99designs’ business model. The platform uses a crowdsourcing approach that invites designers to compete for projects with only the winning designer getting paid. This model offers clients a variety of design options at a fixed fee, fostering creativity and competition among designers. The authors of the book “Real Impact Strategy” used the competition model at 99designs to design their book cover. The authors appreciated the interactive and collaborative nature of the process, which allowed them to incorporate feedback from potential readers into their final decision. However, the use of 99designs sparked criticism from traditional designers and colleagues regarding potential exploitation of designers and claims that genAI tools could have done the job instead. This criticism highlights the growing influence of genAI as proponents claim it can produce high-quality designs quickly and at low cost. Generative AI poses both opportunities and threats to 99designs. It can enhance the platform by increasing the quantity and quality of design submissions, making design services more accessible and affordable. Conversely, it threatens to devalue human creativity, reduce the demand for freelance designers, and undermine the platform’s business model by enabling clients to generate designs without professional assistance. The case ultimately raises questions about the future role of generative AI in the creative industries. In the teaching note, but not in the case itself, the authors conclude that 99designs.com provides publishers, and in this case, the co-authors, many benefits beyond designing the cover. It involves them in a learning process as well as helps them to create awareness and interest for the book through the cover survey.
- Identify the relevant value constellation for 99designs.com as a platform connecting clients with freelancers.
- Analyze the features that 99designs.com provides.
- Connect those features with the benefits for clients and for freelancers.
- Evaluate the multiple benefits that 99designs.com offers to clients beyond the simple creation of a design.
- Discuss the AI paradox that 99designs.com is facing, i.e. whether Generative AI is a strategic threat or an opportunity for the platform.
Manufacturing, Graphic Design
2021
Cranfield University
Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]
Harvard Business School Publishing
60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]
NUCB Business School
1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]
IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.
Research Information & Knowledge Hub for additional information on IMD publications

Take the strategic thinking test for leaders to assess your readiness and explore practical steps to strengthen this vital leadership capability.

Future-ready organizations that focus on the energy transition and accelerate along with it will reap the benefits.
The Sandoz leadership team faced an important decision as it broke away from Novartis and became a public company. Should Sandoz retain the global geographical coverage it had had in its many years as part of Novartis? Or should it focus on fewer ...
This case series explores Sandoz's spin off from Novartis, which was finalized on 4 October 2023. Case A follows Richard Saynor's (CEO, Sandoz) ruminations as he builds the company strategy in preparation for the board's approval of Sandoz as a st...

ABB CEO Morten Wierod on leaner cleaner strategy, electrification, automation, robotics, AI, digital transformation, sustainability, leadership.

OpenAI’s new paper shows AI hallucination is inevitable. Discover how Gödel’s paradox reshapes AI strategy and leadership for 2026 and beyond.

New ideas behind innovative business models can feel sudden, but are rarely random. Innovation happens when you reframe challenges and opportunities.

Discover how family business leaders can nurture a generation of givers, ensuring wealth transfer builds lasting impact.

Earn the right to be heard by blending credibility with relatability, meeting audiences where they are, and building rapport through shared stories.

Circular and regenerative strategies are redefining business growth amid climate change, resource scarcity, and geopolitical tension within planetary limits.
Research Information & Knowledge Hub for additional information on IMD publications
in I by IMD
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Case reference: IMD-2669 ©2025
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
in I by IMD Brain Circuits 4 September 2025
Research Information & Knowledge Hub for additional information on IMD publications
in I by IMD
Research Information & Knowledge Hub for additional information on IMD publications