DIGITAL TRANSFORMATION OF ENTERPRISES: THE ROLE OF ARTIFICIAL INTELLIGENCE IN ENHANCING COMPETITIVENESS

Faculty of Business Economics Bijeljina, University of East Sarajevo, Republic of Srpska, BiH
Bosnia and Herzegovina


Abstract

This paper analyzes the process of digital transformation with a special focus on the role of artificial intelligence (AI) as a key driver of modern business. The aim is to examine how the integration of AI technologies into marketing, production, finance, and sales functions contributes to process optimization and strengthening companies’ competitive advantage. The research is based on a theoretical analysis of contemporary scientific sources and practical examples of artificial intelligence application in global and regional business environments. The results indicate that artificial intelligence significantly increases operational efficiency and personalization of the customer experience. However, successful implementation requires overcoming challenges such as high costs, lack of skilled workforce, and employee resistance to change. The paper concludes that digital transformation is not only a technological issue but a strategic necessity for long-term survival in the digital market.

Keywords



Full Text


References


Berente, N., Gu, B., Recker, J., & Santhanam, R. (2021). Managing artificial intelligence. MIS Quarterly, 45(3), 1433–1450. https://doi.org/10.25300/MISQ/2021/16274

Bradić, B. (2023). Primjena vještačke inteligencije u poslovanju. In Napredne tehnologije u obrazovanju i privredi (Conference paper), Vrnjačka Banja, Serbia.

Chui, M., Manyika, J., & Miremadi, M. (2018). What AI can (and can’t) do for your business. McKinsey Global Institute. https://www.mckinsey.com/mgi

Daraboš Longin, M. (2023, June). Strategic behavior of companies for prosperity in dynamic environments: An empirical study. In Proceedings of the 41st IBIMA Conference, Granada, Spain.

Daraboš Longin, M., Hruška, D., & Sedinić, V. (2021). Relationship between personality and learning goal orientation preceding the first employment. Sustainability.

https://www.mdpi.com/2071-1050/13/6/3003

Liu, S., & Zhang, L. (2022). Application of AI in business process optimization: Opportunities and challenges. Journal of Industrial Information Integration, 23, 100224. https://doi.org/10.1016/j.jii.2021.100224

McKinsey & Company. (2018). Unlocking success in digital transformations.

https://www.mckinsey.com/

Milutinović, V., Milutinović, S., & Pilipović, A. (2017). Veštačka inteligencija: Primena u savremenim tehnologijama. Računarska industrija.

Mousa Al-kfairy, D., Mustafa, D., Kshetri, N., Insiew, M., & Alfandi, O. (2023). Ethical challenges and solutions of generative AI: An interdisciplinary perspective. Informatics, 11(3), 58. https://doi.org/10.3390/informatics11030058

Pollák, F., & Markovič, P. (2021). Size of business unit as a factor influencing adoption of digital marketing: Empirical analysis of SMEs operating in the Central European market. Administrative Sciences, 11(3), 71. https://www.mdpi.com/2076-3387/11/3/71

Russell, S. J., & Norvig, P. (2009). Artificial intelligence: A modern approach (3rd ed.). Prentice Hall.

Smith, B., & Linden, G. (2017). Two decades of recommender systems at Amazon.com. IEEE Internet Computing, 21(3), 12–18. https://doi.org/10.1109/MIC.2017.72

World Economic Forum. (2020). The Future of Jobs Report 2020: Digital transformation and the workforce. https://www.weforum.org/publications/the-future-of-jobs-report-2020/

Zhang, C., & Lu, Y. (2021). Study on artificial intelligence: The state of the art and future prospects. Journal of Industrial Information Integration, 23, 100224. https://doi.org/10.1016/j.jii.2021.100224