Artificial Intelligence and Digital Transformation in IT Management and Business Management: A Critical Literature Review

Artificial intelligence (AI) and digital transformation now feature prominently in discussions about business strategy and information technology. However, simply introducing an AI tool does not guarantee better results. Organisations need to connect technology decisions with business priorities, prepare reliable data and infrastructure, develop staff skills, manage risks, and fit new tools into everyday work. This review brings together selected literature around five related themes: 1) digital transformation as organisational change; 2) AI readiness and organisational capabilities; 3) IT governance and strategic alignment; 4) implementation challenges and responsible use; and 5) the measurement of business value. It draws on perspectives such as the Technology–Organisation–Environment framework, the resource-based view, dynamic capabilities, IT governance, and technology-acceptance models. Across these themes, one point stands out: readiness, governance, implementation, and value are closely connected and are best examined as parts of the same management process. The literature review paper offers a provisional framework and propositions for future research.