Artificial intelligence (AI) is increasingly positioned as a strategic resource, yet its contribution to sustained competitive advantage remains uneven and theoretically fragmented. This study addresses this gap by conducting a systematic literature review (SLR) of 79 studies at the intersection of AI, information systems, and business strategy. Adopting a concept-centric and theory-building approach, the review synthesizes prior research to identify key mechanisms, inconsistencies, and boundary conditions shaping AI-enabled strategic outcomes. The findings reveal that AI does not create value as a standalone technological capability, but as part of a broader socio-technical system requiring alignment between digital capabilities, organizational processes, governance structures, and culture. Six interrelated themes are identified, encompassing technological foundations, value creation, task augmentation, decision support, leadership, and organizational integration. Cross-study analysis highlights persistent tensions-such as automation versus human judgment and efficiency versus strategic flexibility-that condition the realization of AI-driven value. Building on these insights, the study develops an integrative conceptual model that reconceptualizes strategic alignment as a dynamic, capability-driven, and tension-laden process. The model positions AI/IT capabilities as microfoundations that enable sensing, seizing, and reconfiguring, while emphasizing the mediating role of organizational culture and the importance of strategic orchestration. The study contributes to Information Systems and strategic management literature by advancing a configurational perspective on AI-enabled value creation, extending strategic alignment theory toward a dynamic and paradox-oriented view, and refining the microfoundations of dynamic capabilities in the context of AI. The findings also provide actionable guidance for organizations seeking to translate AI investments into sustained strategic value.
Emmanuel Ikart (Thu,) studied this question.