Leading with Intelligence : How AI is Reshaping Creative Innovation in Organizations

Authors

  •   Anuj Kumar Head of Research (Corresponding Author), Rushford Business School, Am Mattenhof 2D, Kriens, 6010, Luzern, Switzerland & Research Fellow, INTI International University, Persiaran Perdana BBN Putra Nilai, 71800 Nilai, Negeri Sembilan, Malaysia ORCID logo https://orcid.org/0000-0002-1205-2794
  •   Padmakali Banerjee Vice Chancellor, IILM University, 1, Knowledge Center, Golf Course Road, Sector - 53, Gurugram - 122 003, Haryana ORCID logo https://orcid.org/0009-0008-9003-6424

DOI:

https://doi.org/10.17010/pijom/2025/v18i9/174843

Keywords:

artificial intelligence, innovation, creativity, organization.
JEL Classification Codes : M0, M1, 03
Publication Chronology: Paper Submission Date : April 15, 2025 ; Paper sent back for Revision : June 15, 2025 ; Paper Acceptance Date : September 3, 2025 ; Paper Published Online : September 15, 2025

Abstract

Purpose : The objective of the paper was to synthesize primary research related to the impact of artificial intelligence (AI) on creative innovation in organizations. As companies in different sectors digitally transform, AI has the potential to improve efficiency, along with being a catalyst for creative innovation, from product ideas and design to challenge mitigation and business model evolution. By an extensive review of literature, this paper presented how AI-driven platforms, tools, and processes challenge traditional processes, foster creativity, and reshape innovation.

Methods : The study is a systematic review of 14 peer-reviewed articles from 2020 to 2025. Scopus and Google Scholar were used for searching the relevant articles on contemporary trends in AI-driven innovation.

Significant Findings : AI enables significant changes to knowledge work, the ideation process, and creative workflow by augmenting human talent, not just automating tasks. Organizational structures were inclining toward digital integration, agility, and cross-functionality; however, creative confidence is driven by AI. Research revealed that AI enhances both incremental and disruptive innovation, and to realize these advantages, continuous talent development and responsible governance are required.

Novelty : Unlike other reviews, this paper exclusively focused on recent articles to provide a comprehensive, cross-sectoral, and current view. Its novelty is in the multilevel framework that connects technological, managerial, and cognitive aspects in AI-supported creative practice.

Implications : For policymakers and practitioners, leveraging AI’s creative potential requires continuous upskilling, investment in digital infrastructure, and ethical governance. Researchers should explore innovation parity, longitudinal creative impact, and social dynamics in future research.

Downloads

Download data is not yet available.

Published

2025-09-15

How to Cite

Kumar, A., & Banerjee, P. (2025). Leading with Intelligence : How AI is Reshaping Creative Innovation in Organizations. Prabandhan: Indian Journal of Management, 18(9), 54–62. https://doi.org/10.17010/pijom/2025/v18i9/174843

References

1) Amancherla, S., Balasundaram, S., & Basavaraj, S. (2024). Championing inclusion: Understanding LGBT diversity and social support in the workplace. Prabandhan: Indian Journal of Management, 17(12), 64–82. https://doi.org/10.17010/pijom/2024/v17i12/174057 DOI: https://doi.org/10.17010/pijom/2024/v17i12/174057

2) Boussioux, L., Lane, J. N., Zhang, M., Jacimovic, V., & Lakhani, K. R. (2024). The crowdless future? Generative AI and creative problem-solving. Organization Science, 35(5), 1589–1607. https://doi.org/10.1287/orsc.2023.18430 DOI: https://doi.org/10.1287/orsc.2023.18430

3) Cristofaro, M., & Giardino, P. L. (2025). Surfing the AI waves: The historical evolution of artificial intelligence in management and organizational studies and practices. Journal of Management History. https://doi.org/10.1108/JMH-01-2025-0002 DOI: https://doi.org/10.1108/JMH-01-2025-0002

4) Dohroo, M., Duggal, T., & Agrawal, C. (2023). Effect of ethical leadership development on improving business organizations within the context of organizational behavior and turnover intentions. Prabandhan: Indian Journal of Management, 16(10), 61–72. https://doi.org/10.17010/pijom/2023/v16i10/173197 DOI: https://doi.org/10.17010/pijom/2023/v16i10/173197

5) Füller, J., Tekic, Z., & Hutter, K. (2024). Rethinking innovation management—How AI is changing the way we innovate. The Journal of Applied Behavioral Science, 60(4), 603–612. https://doi.org/10.1177/00218863241287323 DOI: https://doi.org/10.1177/00218863241287323

6) Gama, F., & Magistretti, S. (2025). Artificial intelligence in innovation management: A review of innovation capabilities and a taxonomy of AI applications. Journal of Product Innovation Management, 42(1), 76–111. https://doi.org/10.1111/jpim.12698 DOI: https://doi.org/10.1111/jpim.12698

7) Grilli, L., & Pedota, M. (2024). Creativity and artificial intelligence: A multilevel perspective. Creativity and Innovation Management, 33(2), 234–247. https://doi.org/10.1111/caim.12580 DOI: https://doi.org/10.1111/caim.12580

8) Holmström, J., & Carroll, N. (2025). How organizations can innovate with generative AI. Business Horizons, 68(5), 559–573. https://doi.org/10.1016/j.bushor.2024.02.010 DOI: https://doi.org/10.1016/j.bushor.2024.02.010

9) Kaggwa, S., Eleogu, T. F., Okonkwo, F., Farayola, O. A., Uwaoma, P. U., & Akinoso, A. (2024). AI in decision-making: Transforming business strategies. International Journal of Research and Scientific Innovation, 10(12), 423–444. https://doi.org/10.51244/IJRSI.2023.10904 DOI: https://doi.org/10.51244/IJRSI.2023.1012032

10) Kaur, S., Yadav, B., Goel, D., Devi, S., Ramachandaran, S. D., & Kumar, A. (2024). Exploring Indian students' perception, behavioral intentions, and motivation for learning with ChatGPT. Prabandhan: Indian Journal of Management, 17(12), 28–45. https://doi.org/10.17010/pijom/2024/v17i12/174055 DOI: https://doi.org/10.17010/pijom/2024/v17i12/174055

11) Kumar, A., Mallick, S. S., Hota, S. L., Vasudevan, A., & Şimşek, S. A. (2024). Green marketing strategies: Enhancing brand image and consumer trust in sustainable development. Prabandhan: Indian Journal of Management, 17(12), 8–27. https://doi.org/10.17010/pijom/2024/v17i12/174054 DOI: https://doi.org/10.17010/pijom/2024/v17i12/174054

12) Li, N., Yan, Y., Yang, Y., & Gu, A. (2022). Artificial intelligence capability and organizational creativity: The role of knowledge sharing and organizational cohesion. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.845277 DOI: https://doi.org/10.3389/fpsyg.2022.845277

13) Mikalef, P., & Gupta, M. (2021). Artificial intelligence capability: Conceptualization, measurement calibration, and empirical study on its impact on organizational creativity and firm performance. Information & Management, 58(3), Article ID 103434. https://doi.org/10.1016/j.im.2021.103434 DOI: https://doi.org/10.1016/j.im.2021.103434

14) Mirzani, Y. (2024). Artificial intelligence and innovation management: Transformative forces shaping organizational creativity. EPRA International Journal of Multidisciplinary Research (IJMR), 10(3), 511–518. https://doi.org/10.36713/epra16272 DOI: https://doi.org/10.36713/epra16272

15) Nour, S., & Arbussà, A. (2024). Driving innovation through organizational restructuring and integration of advanced digital technologies: A case study of a world-leading manufacturing company. European Journal of Innovation Management. https://doi.org/10.1108/EJIM-02-2024-0156 DOI: https://doi.org/10.2139/ssrn.5255476

16) Oloyede, J. (2025). The AI-driven organization: Building future-ready teams and structures. SSRN. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5317009 DOI: https://doi.org/10.2139/ssrn.5317009

17) Prabhu, K. P., Rodrigues, L. L., & Pai, Y. (2019). Transformational leadership and workplace spirituality: A structural model of team effectiveness. Prabandhan: Indian Journal of Management, 12(4), 7–22. https://doi.org/10.17010/pijom/2019/v12i4/143344 DOI: https://doi.org/10.17010/pijom/2019/v12i4/143344

18) Roberts, D. L., & Candi, M. (2024). Artificial intelligence and innovation management: Charting the evolving landscape. Technovation, 136, Article ID 103081. https://doi.org/10.1016/j.technovation.2024.103081 DOI: https://doi.org/10.1016/j.technovation.2024.103081

19) Zhang, Q., Liao, G., Ran, X., & Wang, F. (2025). The impact of AI usage on innovation behavior at work: The moderating role of openness and job complexity. Behavioral Sciences, 15(4), 491. https://doi.org/10.3390/bs15040491 DOI: https://doi.org/10.3390/bs15040491