Adoption of Artificial Intelligence and Its Impact on Competitive Advantage: Mediated by Knowledge Management

This study investigates the impacts of artificial intelligence (AI) and knowledge management (KM) on the competitive advantage (CA) of enterprises. In particular, it delves into the mediating role of knowledge management in the relationship between artificial intelligence and competitive advantage. Structural Equation Modelling (SEM) is employed to assess the relationships among the variables, with data drawn from a sample of 402 respondents in China. The survey findings reveal that the adoption of artificial intelligence significantly improves both knowledge management and the competitive advantage of enterprises; knowledge management not only directly impacts competitive advantage but also serves as a mediating variable in the relationship between artificial intelligence and competitive advantage. This mediating effect of knowledge management demonstrates how the acquisition, sharing and application of knowledge, propelled by artificial intelligence, can enhance competitive advantage over the long term. The findings of this study validate and extend the existing body of knowledge regarding the influences of AI and KM on enhancing organisational competitive advantage. It provides valuable insights for the strategic integration of artificial intelligence within a knowledge-driven framework, particularly within the context of Chinese enterprises. By addressing gaps in the related literature, it contributes to both the theoretical advancement and practical application of enterprise management.