Foster Knowledge-Based Dynamic Capabilities Through Tacit Knowledge from Employee-AI Collaboration

As organizations integrate artificial intelligence (AI) into daily operations constantly, prevalent Employee-AI collaboration drives a demand for more effective knowledge acquisition. This study aims to examine how organizations can leverage the tacit knowledge from Employee-AI collaboration to enhance knowledge-based dynamic capabilities (KBDCs). Adopting a qualitative research design based on 29 semi-structured interviews of employees from different levels who collaborate with AI in their daily work, we identify a dynamic and iterative knowledge management mechanism in organizations that can transfer tacit knowledge from Employee-AI collaboration into strategic organizational assets, contributing to KBDCs building. We revealed that employees’ adaptive experiences with AI offer a dynamic knowledge base, supporting organizational learning and adaptability. This study contributes theoretically by highlighting mechanisms through which employees’ tacit knowledge from AI collaboration fosters KBDCs, enriching the knowledge-based view of dynamic capability and supplementing knowledge management mechanisms in organizations. Practical implications are also discussed.