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December 1, 2024
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April 3, 2025
Published
May 12, 2025
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Abstract

This article reviews the challenges and opportunities associated with integrating Artificial intelligence (AI) into business operations through the lens of Dynamic Capabilities Theory (DCT). Artificial intelligence is becoming a pivotal tool for enhancing organizational efficiency and driving innovation across industries. In this literature review, the author examines how businesses can effectively implement AI to improve decision-making, productivity, and customer experience while addressing data privacy, algorithmic bias, and ethical implications. The paper highlights the relevance of DCT, which emphasizes the importance of sensing, seizing, and transforming capabilities in navigating these complexities. While AI offers substantial benefits, its integration is fraught with challenges that require organizations to strategically adapt their structures, processes, and skills. The article concludes by underscoring the importance of developing ethical frameworks, investing in workforce reskilling, and enhancing dynamic capabilities to ensure the successful adoption of AI. These insights provide valuable guidance for business leaders seeking to leverage AI to achieve sustainable growth and competitive advantage.

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Artificial intelligence business integration ethical challenges decision-making organizational efficiency

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Copyright (c) 2025 Jeanette Owusu, Isaac Sardello Agbesi

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This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Author Biography

Jeanette Owusu, Valley View University, Ghana

Jeanette Owusu holds a PhD in Business Management, with a specialization in Strategic Management, from the Philippine Christian University. She is a lecturer in the Department of Management Studies and serves as the Director of the Center for Academic Research and Engaged Scholarship at Valley View University. Her research interests include strategic management, strategic planning, leadership, innovation, and sustainable development.

How to Cite
Owusu, J., & Agbesi , I. S. K. (2025). Navigating the Dilemma of AI Integration for Organisational Performance: Insights for Contemporary Business Strategists. Pan-African Journal of Education and Social Sciences, 6(1), 49–62. https://doi.org/10.56893/pajes2025v06i01.04
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