ASSESSING THE EFFECTIVENESS OF ARTIFICIAL INTELLIGENCE IN ADVANCING INNOVATION AND ADAPTABILITY IN BUSINESSES AND ORGANIZATIONS: A PRELIMINARY REVIEW

Abstract
Artificial Intelligence (AI) is increasingly recognized as a transformative force for businesses and organizations, fostering both innovation and organizational adaptability in environments characterized by volatility and uncertainty. Despite growing investments in AI, the academic literature reveals a significant gap in the systematic evaluation of its effectiveness, particularly regarding its impact on innovation outcomes and strategic or operational flexibility. Existing assessments often privilege technical indicators while overlooking broader organizational and strategic implications.This preliminary review examines the literature across three dimensions: AI as a driver of innovation, AI as an enabler of organizational adaptability and the methodological challenges of assessing AI effectiveness in organizations and enterprises. Leveraging academic publications indexed in Scopus, Web of Science, Google Scholar and others, the review employs a comparative approach to identify research trends and understudied gaps.Key findings highlight the absence of an integrated, empirically validated framework of performance indicators that links AI applications to innovation and adaptability. There is a need for multidimensional metrics that combine technical measures with strategic and operational KPIs, enabling a more holistic understanding of AI’s impact on companies’ and organizations’ outcomes.The contribution of this preliminary review lies in establishing the foundation for the development of such a framework, bridging theoretical insights with practical applications. The next phase will involve empirical validation through a mixed‑methods research design, aiming to provide tools for academics and practitioners to measure AI-driven value creation and enhance sustainable competitiveness. Keywords - Artificial Intelligence (AI), Innovation, Organizational adaptability, Strategic flexibility, AI effectiveness, Key performance metrics (KPIs)