Incumbent strategic renewal drivers to AI disruption

In light of destructive technology theories, AI technologies disrupt markets while simultaneously offering opportunities for strategic renewal (SR). We assess how major corporations worldwide are modifying their strategies as well as organisational and AI capabilities to counter AI-induced market pressures. AI-driven stress fosters innovation, yet the primary force behind change remains internal organisational dynamics. Companies must strike a balance of exploration/exploitation when using AI for both automation and radical innovation and prioritise AI capabilities/resources, such as data and AI dynamic capability.