Harnessing Artificial Intelligence: Organizational Creativity, Innovation, and Performance in the Digital Era

Abstract

This study explores the transformative role of artificial intelligence in shaping organisational creativity, innovation processes, and performance outcomes. Drawing on qualitative data from semi-structured interviews with senior managers and innovation leads across diverse sectors, the research develops and validates a conceptual framework that positions creativity as a mediating mechanism between AI adoption and strategic performance. Thematic analysis reveals that AI-enabled tools foster ideation, experimentation, and cross-functional collaboration, particularly when embedded within inclusive and adaptive organisational cultures. However, the findings also highlight tensions between technological efficiency and human agency, with implications for leadership, trust formation, and ethical innovation. By bridging theoretical insights with empirical evidence, the study contributes to a deeper understanding of how organisations can leverage AI not merely as a technical asset, but as a catalyst for creativity-driven transformation. The paper concludes with recommendations for future research and practice, emphasising the need for context-sensitive strategies that align digital capability with human-centred innovation.