Navigating the Dilemma of AI Integration for Organisational Performance: Insights for Contemporary Business Strategists

This article reviews the challenges and opportunities associated with integrating Artificial intelligence (AI) into business operations through the lens of Dynamic Capabilities Theory (DCT). Artificial intelligence is becoming a pivotal tool for enhancing organizational efficiency and driving innovation across industries. In this literature review, the author examines how businesses can effectively implement AI to improve decision-making, productivity, and customer experience while addressing data privacy, algorithmic bias, and ethical implications. The paper highlights the relevance of DCT, which emphasizes the importance of sensing, seizing, and transforming capabilities in navigating these complexities. While AI offers substantial benefits, its integration is fraught with challenges that require organizations to strategically adapt their structures, processes, and skills. The article concludes by underscoring the importance of developing ethical frameworks, investing in workforce reskilling, and enhancing dynamic capabilities to ensure the successful adoption of AI. These insights provide valuable guidance for business leaders seeking to leverage AI to achieve sustainable growth and competitive advantage.