PACIS 2022 Proceedings

Paper Number

1218

Abstract

Artificial intelligence (AI) is gaining momentum to have a transformational impact. However, there is limited knowledge on how to embed AI in organizations and adapt to unforeseen circumstances. This work argues that strategic flexibility, driven by AI’s routine and innovative use, AI ambidexterity, will enhance operational ambidexterity, the organization’s capacity to improve and innovate operational business processes using digital technologies. This study uses survey data and analyses the 257 responses from decision-makers using a composite-based approach to structural equation modeling. Outcomes show that AI ambidexterity positively influences the organization’s strategic flexibility. Furthermore, strategic flexibility subsequently fully mediates the effect of AI ambidexterity on operational ambidexterity, confirming the central argument made in this work. This work calls for further investigations on the business value of AI. In particular, extensive research efforts are needed to substantiate the AI-driven dynamic capability perspective as a driver for competitive advantages under tumultuous times.

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