Artificial Intelligence, Dynamic Capabilities, and Business Optimization

Abstract

Artificial intelligence is a recent technological paradigm that mimics human thinking and evaluating ability. It has the potential to transfer human intelligence to informatics systems in business management and transform various business aspects such as information acquisition, product creation, and service utilization. It may also help businesses mitigate threats and capitalize on opportunities. However, some organizations have rushed into its adoption despite their limited operational skills and its high costs. In this context, dynamic capabilities are crucial for a company's growth, and artificial intelligence can transform the process. This chapter reviewed and analyzed data in the literature to reveal the performance enhancement and productivity improvement led by artificial intelligence in a way that utilizes capabilities, competencies, and resources of firms.