In the digital economy, digital transformation has moved beyond information-system upgrades and isolated process automation toward the systematic reconstruction of organizational boundaries, business processes, value propositions, and governance arrangements. Artificial intelligence (AI) has become a major force in this development because it can process large-scale data, recognize patterns, generate predictions, and support increasingly autonomous interaction. This paper adopts a theoretical approach and integrates research on digital transformation, dynamic capabilities, artificial intelligence implementation, and sociotechnical systems to examine how artificial intelligence affects digital transformation. The analysis argues that artificial intelligence operates through four interconnected mechanisms: the conversion of data into organizational assets, the intelligence enhancement of decision making, the adaptive automation of processes, and the reconstruction of business models. These mechanisms also reshape organizational structures, talent requirements, innovation routines, and accountability relationships. Nevertheless, artificial intelligence is not an automatic source of transformation performance. Its value depends on the interaction of data quality, organizational learning, leadership support, cross-functional collaboration, human expertise, and governance institutions. Algorithmic opacity, data dependence, privacy risks, responsibility gaps, labor-market disruption, and unequal access may also constrain or reverse the expected benefits. Organizations should therefore treat artificial intelligence as an organizational capability-building project rather than as a software procurement exercise. The central implication is that sustainable digital transformation requires a feedback system connecting technology deployment, organizational change, and responsible governance.
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Share and Cite
Yang, H. (2026) The Impact of Artificial Intelligence on Digital Transformation: A Theoretical Analysis from the Perspectives of Organizational Capability and Value Creation. Hong Kong Financial Bulletin, 2(2), 58-63.