ARTIFICIAL INTELLIGENCE AND BUSINESS REVOLUTION FOR SURVIVAL: STRATEGIC ADAPTATION FOR COMPETITIVE ADVANTAGE IN THE DIGITAL TRANSFORMATION ERA

Abstract

                 This academic article aims to examine the role of Artificial Intelligence in driving strategic business management during the digital transformation era. The study focuses on presenting the interrelationships between the application of artificial intelligence, its multidimensional impacts, and strategic management approaches that promote business sustainability. Artificial intelligence is recognized as a digital innovation developed to acquire the capability to learn, analyze, and make decisions based on large-scale data in order to generate knowledge and simulate logical reasoning processes similar to those of human cognition. The findings reveal that the adoption of artificial intelligence in business operations yields several positive outcomes, including enhanced operational efficiency, improved competitiveness, and the creation of innovative products and services. Nevertheless, certain negative impacts and key limitations are also identified, such as the reduction of human labor roles, data security risks, technological inequality, and ethical concerns related to data usage and autonomous decision-making. Appropriate strategic management practices should therefore emphasize the effective and ethical utilization of artificial intelligence. Organizations are encouraged to develop robust data infrastructures, strengthen employees’ digital competencies to adapt to technological changes, and design dynamic, real-time strategic decision-making processes. Such measures will enhance the organization's ability to respond to market demands effectively and sustain competitive advantages in the long term.