Role of Absorptive Capacity in driving Artificial Intelligence based Digital Transformation Projects towards success

Abstract

With Artificial Intelligence (AI) gaining increasing attention in the industry, digital transformation (DT) based around the technology has become imperative for organizations seeking positive business outcomes. Firms embark on AI‑based DT journeys influenced by technological, organizational, and environmental factors, yet success depends on how these forces are strengthened by the inherent absorptive capacity. This study employed a semi‑systematic literature review of 34 articles to understand the specific role of digital absorptive capacity and to build the conceptual model. An initial plausibility assessment supported by deductive coding and analysis was conducted through a positivist interviewing approach involving four industry experts from Technology business sector, during October 2025. Findings provided preliminary support for the proposition, and identified external support as a critical environmental construct within the TOE framework. These findings contribute to the evolving theoretical perspectives on AI‑driven DT and absorptive capacity. The study also urges practitioners and policy makers to mobilize resources and strengthen support mechanisms in favor of AI-based DT.