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 generate enormous amounts of information through financial systems, operational activities, customer interactions, and administrative processes. Yet having access to more data does not necessarily mean having a clearer understanding of organizational performance. Information becomes valuable when organizations can understand what it means, how it connects, and what it reveals.