Artificial Intelligence: A Strategy to Harness its Power Through Organizational Learning

Abstract

Although artificial intelligence (AI) has become a crucial component of digital transformation efforts tied to organizational strategy, many firms struggle to articulate the strategic value of emerging AI systems. In this article we argue that the power of AI as a strategic resource lies in its self-learning capabilities. Such learning capabilities are only realized in partnership with humans through mutual learning. By building on a learning-centered framework, we elaborate on how AI can contribute to organizational learning to create a competitive advantage. We formulate the concept of artificial capital and the ways artificial and human capital can together drive routinization and strategic learning processes that connect internal and external environments of the organization. Finally, we use this conception to formulate practical recommendations for managing and developing AI to meet strategic business goals.

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Citation

Jarrahi, M.H., Kenyon, S., Brown, A., Donahue, C. and Wicher, C. (2022), "Artificial intelligence: a strategy to harness its power through organizational learning", Journal of Business Strategy, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JBS-11-2021-0182