Artificial intelligence has emerged as a transformative force in business strategy research, reshaping how organizations conceptualize competitive advantage, reconfigure capabilities, and restructure decision architectures. This integrative review synthesizes peer-reviewed studies to map the evolving role of AI in strategic management. Drawing on literature from leading journals in strategy, information systems, and innovation, the analysis examines how AI is conceptualized—as both a decision-support tool and an autonomous strategic actor—and evaluates its organizational implications across adoption, governance, and transformation processes. Key findings reveal convergences around AI’s augmentation of dynamic capabilities and competitive positioning, yet persistent tensions exist regarding automation-augmentation paradoxes, managerial role erosion, and ethical governance challenges. The review introduces the AI Strategic Organizational Integration Model, a novel synthesis framework comprising five interconnected domains that organize prior research and highlight pathways toward emerging theoretical directions. By classifying studies along dimensions of strategic cognition, capability transformation, organizational redesign, governance tensions, and market-level outcomes, the model illuminates gaps in longitudinal evidence and cross-level theorizing. This work advances an integrative understanding of AI’s strategic significance while offering a structured foundation for future research on intelligent systems in dynamic business environments.
Institute for Management, Business, and Accounting Studies