Framework for Measuring the Impact of a Firm’s Artificial Intelligence Capability on Creativity within the Organizational and Performance of the Firm

Abstract

Artificial Intelligence (AI) may benefit businesses in the future. This study (1) identifies AI-specific resources, (2) develops a framework for measuring AI capabilities in enterprises, and (3) examines how AI capabilities affect organizational creativity and productivity. Recent research on organizational artificial intelligence, coupled with a firm's resource-based approach, strengthens this foundation. The findings confirm the theoretical framework and instrument, showing that AI capability boosts organizational performance and innovation. Our solution organizes the AI development resources of a company. These questions center on artificial intelligence (AI), knowledge, and intangible assets, although many structures and technologies leverage various digital capabilities. We evaluate artificial intelligence and its business applications literature by applying new methods and altering old ones. This empirical study proved the reliability, validity, and generalizability of the AI capacity concept as well as its main components and properties. The IS community can analyze and communicate how a company uses AI to achieve its business goals. We demonstrate how artificial intelligence affects organizational performance. Researchers have also focused on business productivity and innovation. An extensive study reveals that the adoption and utilization of AI in enterprises significantly impacts critical results. To the best of our knowledge, no empirical research has linked theoretical AI concepts to key business KPIs. According to our research, AI proficiency boosts organizational performance and creativity. This study emphasizes the importance of integrating AI throughout a firm because data and technology alone cannot produce meaningful business benefits.