The integration of Artificial Intelligence (AI) into digital business strategies is reshaping industries and revolutionizing how organizations operate. This study aims to explore the dynamic relationship between digital business and AI by assessing the impact of AI adoption on business outcomes such as operational efficiency, customer satisfaction, and revenue growth. The research employs a qualitative approach, specifically a comprehensive literature review, to analyze key studies, identify trends, and understand the challenges organizations face in integrating AI technologies into their business models. By synthesizing existing literature, the study investigates the role of AI in transforming business operations, enhancing customer experiences, and driving innovation across various industries. The findings suggest that AI has significantly enhanced business processes by automating tasks, improving decision-making, and personalizing customer interactions, thus enabling companies to maintain competitive advantages. However, the research also highlights several barriers to AI adoption, including challenges related to data quality, skilled workforce, and ethical considerations. Furthermore, the study identifies future trends in AI integration, such as the potential for AI to drive innovation in business models and contribute to strategic decision-making. This research contributes to the theoretical understanding of AI in digital business while offering practical insights for organizations seeking to leverage AI for sustained growth and innovation.