Maximizing AI-powered performance through interplay of information management practices and organizational planning
Abstract
This research aims to explore the impact of artificial intelligence (AI) capabilities on the overall organizational performance and investigate how information management and planning act as mediators to this relationship in financial institutions of Saudi Arabia. Using a Dynamic Capabilities Theory (DCT) approach, a proposed model was developed to illustrate the linkage between AI capabilities and organizational performance via the use of information management and planning. Data was collected through simple random sampling from 180 employees working in financial institutions of Saudi Arabia through a survey which was later analyzed using structural equation modelling (SEM) through Smart PLS. The results indicate that AI capability contributes directly and indirectly towards organizational performance, by enhancing both information management and planning processes. Therefore, the planning process is the most important in attaining a competitive advantage from AI insights. In terms of theory, this research adds to the current body of knowledge by providing a better understanding of how AI plays a role in organizational process. Practically, this research can help managers who wish to utilize both AI and information management to sustain competitive advantage.