Digital Transformation (DT) and Artificial Intelligence (AI) Convergence in Organizations

Digital transformation (DT) and Artificial Intelligence (AI) are increasingly becoming a top agenda for organizations. As organizations navigate the transformative landscape of DT, the integration of AI into business processes has emerged as a critical driver for competitive advantage and innovation. Using grounded theory approach, this research focuses on describing the DT-AI integration process and developing a dynamic capability framework. The article employs a mixed methods approach with multiple phases. First, we formed a qualitative meta-synthesis through a systematic literature review (SLR) of extant knowledge (n = 72 articles reviewed) and then, interviews are carried out with experts (n = 28). We coin a new concept of Digital AIzation (DAx) (pronounced: digital AI Zay·shn), a process that effectively leverages AI technologies within the broader context of digital transformation and enables organizations to create digital value in the process. We develop a capability framework for DAx providing a list of perceptual, acquisition and transforming capabilities for organizations.