Artificial intelligence (AI) is reshaping how organizations approach productivity, operational efficiency, and decision-making. Yet an important question remains: What separates an investment in AI technology from the development of lasting organizational capability? Research from Stanford University's Digital Economy Lab offers a valuable perspective.

Organizations often invest in sophisticated technology while continuing to operate through disconnected systems, inconsistent information, and fragmented processes. Financial systems may tell one story. Operational systems may tell another. Administrative data may exist in a separate environment altogether. Each system can perform its intended function, yet the organization may still lack a connected understanding of what is happening across the enterprise. That is where ar