Artificial intelligence as a driver of organizational digitalization: Benefits, conditions and challenges

Abstract

Abstract

This theoretical article examines artificial intelligence in organizational digitalization. It distinguishes digitization, digitalization, and digital transformation, then combines sociotechnical theory with the dynamic capabilities perspective to explain how technology interacts with employees, routines, organizational structures and adaptation. The framework proposes that artificial intelligence supports transformation when aligned with strategy, integrated into processes and complemented by employee expertise, data and responsible governance. It highlights tensions involving discretion, bias, accountability and the fit between standardized systems and local practices. The article contributes propositions for empirical research and argues that AI’s value depends on integrating technical systems with human capabilities and organizational oversight. AI applications can automate repetitive tasks, analyze large amounts of data, personalize services and support decisions. However, their effects depend on data quality, employee skills, leadership commitment and the organizational context. For this reason, the article moves the focus beyond the simple adoption of AI and highlights the organizational capabilities and governance needed to integrate it responsibly.

Keywords: artificial intelligence; organizational digitalization; digital transformation; dynamic capabilities; sociotechnical systems; AI adoption; responsible AI governance.