Who Can? AI Can! Enhancing Firms’ Knowledge Management Capabilities Through an Ethical Implementation of Artificial Intelligence

Abstract

Abstract Integrating Artificial Intelligence (AI) in Knowledge Management (KM) represents a transformative approach to how firms acquire, retain, and utilize knowledge to sustain competitive advantages. This chapter examines the key role of AI in enhancing six KM capacities—inventive, absorptive, transformative, connective, innovative, and desorptive—within the framework of the dynamic capability view. These capacities empower organizations to thrive in dynamic environments by effectively generating, assimilating, retaining, sharing, and applying knowledge. AI can act as a catalyst for these capacities by enabling advanced data processing and actionable insights. However, its integration also presents ethical challenges, including data privacy concerns, bias, and intellectual property issues. Drawing on insights from industry professionals, experts, and AI-generated analysis, this chapter explores these ethical dimensions and the regulatory actions necessary to address them. Through real-world applications and multidisciplinary perspectives, this chapter explains how AI can be ethically and effectively used to advance KM capacities. Future research is recommended to validate these findings across industries and to develop targeted regulatory and ethical frameworks for responsible AI implementation.

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