Harnessing AI for value: examining the impact of AI capabilities and the mediating role of organizational agility on project value proposition

Purpose Recent advancements in artificial intelligence (AI) have transformed it from a mere technological tool to a key strategic asset, able to enhance company value propositions by enabling deeper insights, improved decision-making and innovative business models. This study empirically examines how AI capabilities influence value definition, creation and capture in project-based organizations (PBOs) and evaluates the mediating role of organizational agility. Design/methodology/approach Drawing on Resource-Based View and Dynamic Capability View, we propose that AI capabilities constitute a unique type of organizational capability, enabling project-based organizations to utilize technological assets and other resources to boost productivity and generate economic value. The paper employs a survey instrument and a partial least squares structural equation modeling (PLS-SEM) to assess how AI capabilities impact project value processes and the mediating role of organizational agility in this relationship. Findings The results robustly support all proposed hypotheses concerning the direct effects. Additionally, organizational agility is identified as a mediator in the relationship between AI capabilities and project value processes. Our study confirms that developing robust AI capabilities necessitates strategic investment in core AI resources. This offers implications for managers and policymakers aiming to leverage AI for fostering competitive advantage. Originality/value This paper explores the role of AI capabilities in enhancing project value processes. It provides empirical evidence highlighting the significance of AI capabilities as essential organizational resources that enable the leveraging of AI to generate project value. The study supports the hypothesis that technology alone is insufficient for deriving value from it. This finding underscores the need for strategic investments in AI capabilities to fully capitalize on the potential of technological advancements.