AI AND COMPETITIVE STRATEGY: HOW EARLY ADOPTION INFLUENCES MARKET DOMINANCE

Artificial Intelligence (AI) has rapidly evolved into a crucial element of competitive strategy, transforming industries andinfluencing how organizations attain and sustain market dominance. The increasing digital disruption has made the earlyadoption of AI a crucial differentiator, enabling organizations to innovate, improve operations, and establish strongcompetitive barriers. This study analyzed the strategic implications of early AI adoption and its impact on long-term marketpositioning and leadership. The research indicates that early adopters benefit from accelerated learning, data-informeddecision-making, and enhanced consumer experiences, but late adopters find it challenging to bridge the competitivedivide. This study seeks to ascertain the extent to which early adoption of AI enhances efficiency, innovation, and marketshare. A qualitative methodology was employed to obtain secondary data from web databases. The inquiry analyzed thetrajectories of early and late adopters to evaluate performance and strategy. Due to accelerated innovation cycles, enhancedconsumer personalization, and superior brand positioning, early adopters can further reinforce their market dominance.The arguments recognize that adoption efforts may be impeded by issues like substantial initial costs, ethical dilemmaswith AI implementation, and the necessity for workforce reskilling. Two conclusions can be derived from the research:This article elucidates the relationship between technological foresight and market leadership, aiding firms in aligning theirstrategic planning with the proactive integration of artificial intelligence. This study illustrates that the early implementationof artificial intelligence is essential for sustaining market relevance and achieving dominance in the digital economy.