A Comprehensive Literature Review on the Role of AI in Strategy Formulation and Organizational Innovation

DOI

10.2991/978-94-6239-754-5_8How to use a DOI?

Keywords

Artificial Intelligence; Strategy Formulation; Organizational Innovation; Systematic Literature Review; Digital Transformation

Abstract

In this increasingly turbulent world of VUCA (volatility, uncertainty, complexity, and ambiguity), AI is becoming an indispensable shift in corporate strategy and innovation. This systematic literature review (SLR) presents a complete review of the increasing literature on the applications of AI in strategy generation and its subsequent effects on corporate innovation. The review draws together the results from 120 peer-reviewed articles, conference papers, and book chapters published between 2015 and 2024 and includes information obtained from several of the most reputable databases such as Scopus, Web of Science, and IEEE Xplore. We extracted three broader themes: [1] AI for data-driven strategic planning; [2] how AI impacts dynamic capabilities and competitive advantage; and [3] the challenges and ethical considerations of AI-led strategy. The results indicate that AI is progressing beyond a tool for effective working, to become a key enabler of proactive, adaptable, and predictive strategies. This research draws attention to important discrepancies in the currently available research, notably with regard to humans collaborating with AI long term, as well as the role of AI in small and medium-sized enterprises (SMEs). Our study also adds to the academy’s discussion with a systematic representation of contemporary research and a foundation for future research in an area that is ongoing and growing.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits any noncommercial use, sharing, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if you modified the licensed material. You do not have permission under this license to share adapted material derived from this chapter or parts of it.

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TY  - CONF
AU  - Setyo Budianto
PY  - 2026
DA  - 2026/09/02
TI  - A Comprehensive Literature Review on the Role of AI in Strategy Formulation and Organizational Innovation
BT  - Proceedings of the International Conference on Digital Transformation in Business and Organisations (ICDTBO 2026)
PB  - Atlantis Press
SP  - 81
EP  - 91
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-754-5_8
DO  - 10.2991/978-94-6239-754-5_8
ID  - Budianto2026
ER  -