AI-ENABLED STRATEGIC TRANSFORMATION: ORGANIZATIONAL CAPABILITIES AND COMPETITIVE ADVANTAGE IN A CHANGING BUSINESS ENVIRONMENT

Abstract

Artificial intelligence is increasingly reshaping business strategies, organizational capabilities, and sources of competitive advantage across industries. This paper provides a structured thematic literature review of recent studies on the role of AI in strategic transformation within a changing business environment. The review synthesizes findings related to digital capabilities, data-driven differentiation, organizational learning, responsible AI governance, and business model transformation. The Resource-Based View, Technology Acceptance Model, and Dynamic Capabilities Framework are used to interpret the main mechanisms through which AI affects organizational performance and strategic adaptation. The reviewed literature indicates that AI alone does not create sustainable competitive advantage; rather, its value depends on complementary organizational resources, process redesign, employee acceptance, governance, and the ability to adapt continuously. The paper concludes with theoretical and practical implications for organizations seeking to integrate AI into their strategic transformation processes.