Journal of Economics and Social Sciences
Vol. 5 No. 2 (2026)

Digital Business Transformation in the Era of Artificial Intelligence: Strategies, Opportunities, and Challenges for Enhancing Business Competitiveness

Ahmad Yahya Hamiduddin (Universitas PGRI Jombang)



Article Info

Publish Date
21 Jul 2026

Abstract

Digital business transformation in the era of Artificial Intelligence (AI) has become a key driver for enhancing business competitiveness amid increasingly intense global competition and rapid technological advancement. The implementation of AI enables organizations to optimize business processes through automation, advanced data analytics, personalized customer services, and data-driven decision-making. This article aims to examine strategies for implementing AI in digital business transformation, identify the opportunities available to business organizations, and analyze the challenges associated with AI adoption. The study employs a literature review method by analyzing relevant academic journals, books, and research reports on digital transformation and artificial intelligence. The findings indicate that AI implementation significantly improves operational efficiency, productivity, product and service innovation, and customer experience, thereby creating sustainable competitive advantages for businesses. However, AI adoption also faces several challenges, including limited digital infrastructure, high investment costs, a shortage of skilled human resources, data security concerns, and ethical issues related to AI utilization. Therefore, an integrated strategy involving digital infrastructure development, workforce capacity building, supportive government policies, and collaboration among businesses, academia, and technology providers is essential to ensure successful and sustainable AI-driven digital business transformation.

Copyrights © 2026






Journal Info

Abbrev

jess

Publisher

Subject

Agriculture, Biological Sciences & Forestry Economics, Econometrics & Finance Law, Crime, Criminology & Criminal Justice Materials Science & Nanotechnology Social Sciences

Description

ournal of Economics and Social Sciences (JESS) is a peer-reviewed journal published twice a year (every June and December) by CV. Civiliza Publishing. Journal of Economics and Social Sciences (JESS) accepts original scientific papers that have never been published. The discussion in this journal ...