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Complete

Abstract

In this review paper, we examine the strategic misalignment between artificial intelligence (AI) initiatives and digital transformation (DT) efforts in organizations. While AI is widely adopted as a core component of DT, many initiatives fail to deliver sustained strategic value despite successful technical implementation. Drawing on a systematic literature review, this research identifies key organizational factors that contribute to misalignment, including disconnects between strategic vision and execution, imbalance between AI ambition and organizational capabilities, and structural fragmentation across business functions. The findings highlight that AI underperformance is not primarily a technological issue but a consequence of weak alignment across strategy, structure, governance, and culture. The study further outlines mechanisms for improving alignment, such as cross-functional governance, integration of AI metrics with organizational performance indicators, and continuous capability development. By reframing AI challenges through a strategic alignment lens, this research contributes to DT literature and offers practical insights for enhancing AI-driven transformation.

Paper Number

1723

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Aug 15th, 12:00 AM

Strategic Misalignment of AI and Digital Transformation (DT) in Organizations

In this review paper, we examine the strategic misalignment between artificial intelligence (AI) initiatives and digital transformation (DT) efforts in organizations. While AI is widely adopted as a core component of DT, many initiatives fail to deliver sustained strategic value despite successful technical implementation. Drawing on a systematic literature review, this research identifies key organizational factors that contribute to misalignment, including disconnects between strategic vision and execution, imbalance between AI ambition and organizational capabilities, and structural fragmentation across business functions. The findings highlight that AI underperformance is not primarily a technological issue but a consequence of weak alignment across strategy, structure, governance, and culture. The study further outlines mechanisms for improving alignment, such as cross-functional governance, integration of AI metrics with organizational performance indicators, and continuous capability development. By reframing AI challenges through a strategic alignment lens, this research contributes to DT literature and offers practical insights for enhancing AI-driven transformation.