AI Orientation: Exploring Determinants in Organizations
What are the determinants of AI Orientation in organizations? This doctoral research explores AI Orientation in Enterprises.
What is AI Orientation and Why is it important?
While AI is heralded as one of the most transformative technologies, scholars caution that its strategic impact may still not be fully realized. In a recent MIT Sloan Management Review study, Wingate, Burns, and Barney (2025) argue that AI alone cannot offer a sustainable competitive advantage, as the technology can be a source of homogenization. It is essential to find novel and strategic ways to use AI, leveraging human creativity, as enterprises strive to capture enduring value from AI.
We define AI Orientation (AIO) as a firm’s deliberate application of AI technologies to achieve its strategic goals. Given the strategic importance of AI in firms today, it is essential to consider AI as a strategic orientation (Li et.al., 2021) and understand the determinants in detail. Its relevance has surged in addressing operational challenges, prompting a growing number of firms to weave it into their strategies (Wilson & Daugherty, 2018; Accenture Report, 2024). With increasingly capable AI systems, organizations can analyze data and make autonomous decisions effectively (Davenport et al., 2020).
Research Motivation
AI has progressed through several waves, moving from the early rule-based expert systems (Simon & Newell, 1958, Yoo et.al, 1995) to machine learning and deep learning approaches (LeCun, Bengio, & Hinton, 2015) fueled by advances in computing power, data availability and technological innovations. The emergence of foundation models, generative AI, agentic AI (Schneider, 2024, 2025) and physical AI (Liu et.al, 2025, Bousetouane, 2025) marked a paradigm shift in the applications of artificial intelligence. These advancements have enabled AI to evolve as a transformative innovation that can compel organizations to reinvent their business models to endure, maintain operations, and achieve competitive advantages (Davenport et al., 2020).
Although research about the significance of AI and its impact on firm performance is rapidly increasing, the extant literature lacks holistic concepts that can capture the determinants of a firm’s AI Orientation and lead to value delivery. Though many industry-driven studies are trying to explore how firms are being successful in their AI advancements, academic research studies are still limited to exploring how firms manage AI internally holistically to scale and deliver value and how they are trying to establish AI as a strategic orientation.
Research Abstract
The field of AI has undergone significant evolution over the past few decades. While AI is heralded as one of the most transformative technologies, scholars caution that its strategic impact may still not be fully realized. Given the strategic importance of AI in today's firms, it is essential to consider AI as a strategic orientation and understand its determinants in detail. Our study examines AI Orientation, defined as a firm's deliberate application of AI technologies to achieve its strategic objectives. Drawing on multiple theoretical perspectives, this study investigates the determinants that shape a firm’s AI orientation.
This study employs a qualitative research approach based on 20 semi-structured interviews with senior AI leaders across various industries. This study makes three interrelated contributions. First, it presents a revised theoretical model of AI Orientation by integrating RBV, UET, ABC, TOC, and LOC, refining six determinants (leadership influence, AI capability, enterprise alignment, AI scalability, AI governance and organizational learning orientation) and documenting sub-themes to illustrate how organizations can apply AI towards its strategic goals. Second, it demonstrates a hybrid methodological approach by combining traditional manual coding in Quirkos with AI-assisted analysis through QualiGPT, illustrating how human–AI collaboration can enhance triangulation and analytical depth. Finally, the study provides a practical framework for leaders seeking to strengthen AI Orientation, especially in organizations where AI adoption remains fragmented or disconnected from strategic priorities.