<![CDATA[Artificial intelligence (AI) has increasingly become an important component of digital transformation, yet its organizational value depends on how firms develop and deploy AI capability to support innovation, competitiveness, and sustainability. This study examines the relationships among digital transformation, AI capability, business innovation, competitive advantage, and sustainable firm performance through a structured integrative literature review. The analysis synthesizes evidence from 30 publications and applies directed qualitative evidence synthesis to identify recurring organizational mechanisms across the literature. The findings indicate that AI capability strengthens analytical and adaptive capacity, while business innovation provides an important mechanism for transforming technological resources into new products, processes, services, and business models. Competitive advantage is associated with dynamic capabilities, AI ambidexterity, strategic integration, and business model innovation. The sustainability dimension further reveals the importance of green innovation, green product innovation, data-driven culture, knowledge integration, green supply-chain management, and innovative work behavior. The study concludes that AI should be conceptualized as an organizational capability embedded within broader technological, managerial, innovative, and environmental systems. This integrated perspective connects digital transformation with competitiveness and sustainable performance through interconnected organizational mechanisms. ]]>
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