The Role of Artificial Intelligence in Knowledge Management through Digital Transformation: A Systematic Review

Abstract

The aim of this research investigation is to provide a comprehensive evaluation with further objective to establish a cogent model of when and how artificial intelligence (AI) influence knowledge management (KM) directly and then the mediating influence of digital transformation (DT) in the work setting of organizations in Pakistan. There have been a rapid growth of AI in knowledge management while less development is noted in developing countries which are still downhearted due to the common reasons of financial issues, insufficient infrastructure, and technology and culture barriers. In order to address these gaps, the current study is initiated with the aim to develop a process model with the theory support of Dynamic Capabilities Theory. Based on the said theory, a theoretical framework was established where direct and indirect relationships of the study variables were formed. Building upon Dynamic Capabilities Theory, the paper expounds on how organizations can effectively sense opportunities with AI, seize them with the embedding of DT routines, and then reconfigure their knowledge to enhance the acquisition, sharing, and application of knowledge. The study aimed to determine the status of AI-enabled KM in terms of its recent implementation in Pakistan, explore inhibitors, examine the mediating role of DT, and to propose a national tailored framework for better KM outcomes. The literature review suggests that AI technologies, such as ML and NLP, can automate/improve knowledge processing, but that their value is realized only in connection with organization-level technology transformation, or digital transformation. On the basis of this stream of literature, hypotheses were developed, examining the effect of AI on KM, the mediating role of DT and the moderating impact of governance and absorption capacity. The study has theoretical implications by contributing to KM and digital transformation literature through a mediation-based model and practical implications by providing implications for organization and policy makers under the “Digital Pakistan” prospectuses. The future directions highlight the empirical validation of the model by using quantitative techniques, developing domain-specific measurement scales with new items for AI, DT, and KM, and sectorial or longitudinal studies to capture differences across time. The following contributions assist to enhance academic as well as practical preparedness for AI-powered KM in Pakistan.