Leveraging AI for competitive advantage in business management

Abstract

This master’s thesis examines how organisations utilise AI as a dynamic capability to achieve and maintain competitive advantage in digital transformation. The research is based on the framework of dynamic capabilities, which offers a strategic perspective on organisations’ transformability. Dynamic capabilities are analysed through three core dimensions – sensing, seizing and reconfiguring – and their relationship with leveraging AI in business process and model innovation is assessed.

The study has a qualitative multi-case research design and analyses publicly available strategic documents and AI-related publications from four European energy companies: Vattenfall, Enel, Ørsted, and Helen. Additionally, the analysis is supported by independent expert reports and articles published by the World Economic Forum and Boston Consulting Group, both of which provide insight into the broader development and challenges of AI implementation in the energy sector.

The findings reveal that AI serves as a critical enabler of business transformation, particularly when its use is strategically aligned with data-driven decision-making and organisational adaptability. Common approach for the companies is that they have integrated AI into business processes in a way that enables proactive response to market changes and the development of customer-oriented services. Although the firms have different AI strategies, they all highlight the role of AI in increasing agility and innovation.

The study concludes that AI can be harnessed as a dynamic capability when it is integrated into strategic processes such as organisational learning, decision-making and resource configuration. The value of AI is not based on individual technology investments but on its ability to support continuous adaptation and competitiveness in a changing business environment. Aligning AI with strategic goals strengthens leveraging AI as a source of renewal and transformation.

This thesis deepens understanding on AI’s strategic role and brings a new perspective to the combination of dynamic capabilities and digital transformation. Practically, the study offers guidelines for organisations planning to harness AI in a business-oriented way as a part of strategic capability development. Although the findings offer relevant academic and managerial insight, the interpretations are subject to limitations due to the document-based design and sector-specific focus. Therefore, future research could explore cross-sectoral comparisons or the longitudinal development of AI-based capabilities.