Authors: Professor Dr.Shrawan Owhal
Abstract: Artificial intelligence (AI) has moved from being a specialised technological application to becoming an important organisational capability that can influence business processes, decision-making, innovation, employee work and sustainability. However, investment in AI does not automatically generate superior organisational outcomes. The value of AI depends on how effectively organisations integrate AI into business processes, develop employee capabilities, redesign workflows and build organisational mechanisms that support rapid adaptation. This study proposes an integrated framework to examine the impact of AI-driven business transformation on organisational agility, employee capability and sustainable performance. Drawing on the Resource-Based View (RBV), Dynamic Capabilities Theory (DCT) and human–technology complementarity perspectives, the study conceptualises AI-driven business transformation as a multidimensional organisational capability involving AI adoption, AI process integration, data-driven decision-making, AI-enabled innovation and AI-supported process transformation. Organisational agility and employee capability are proposed as important mechanisms through which AI transformation contributes to sustainable performance. The paper develops five hypotheses and proposes a quantitative research design using a structured Likert-scale questionnaire and PLS-SEM. The proposed analysis includes reliability and validity assessment, descriptive statistics, correlation analysis, VIF, common method bias, measurement-model assessment, structural-model estimation, mediation and robustness analysis. Existing empirical evidence supports the proposed relationships but also indicates that AI benefits are conditional on employee skills, organisational culture, governance, data quality and the ability to redesign business processes. The study contributes by integrating technological, organisational and human dimensions into a single model and by positioning sustainable performance as a multidimensional outcome encompassing economic, environmental and social performance.
