Generative AI is transforming industries and business functions at a rapid pace. This paper contributes to the understanding of the transformative role that Generative AI plays in driving business model innovation (BMI). Through a comprehensive multiple-case study approach, this study delves into the drivers, barriers, and opportunities that Generative AI provides in context to the three dimensions of business model innovation – value creation, value proposition, and value capture. Additionally, we investigate the scope and novelty of Generative AI in business model innovation. Via a multiple-case study of eight companies across different industries and various sizes, we demonstrate how firms find it relatively easier to innovate on value creation than with value proposition, and find it hardest to innovate on value capture. We also demonstrate the challenges for incumbent firms in developing truly “architectural business model innovations” in the context of Generative AI that would change both the internal and external activities and structures of existing companies. In addition to providing empirical evidence on the use of Generative AI, this study also aims to bridge the gap between research and practice.