This monograph offers an analysis of how AI is reshaping core business functions, from strategy formulation to operational execution. Structured in five parts, the book frames AI not just as a technological tool but as a transformative institutional logic that redefines how firms create value. Part I reconceptualizes business models in the AI era by exploring the shift from linear value chains to a business as an adaptive learning system. Part II then analyzes the strategic tensions inherent in AI adoption, including the balance between efficiency, innovation, and data governance.  Part III highlights new modes of human-AI collaboration, the challenges of algorithmic risk, and the enduring role of human creativity and judgment as strategic assets. Part IV and V address societal and international business perspectives, as well as future directions for research. This book is appropriate for scholars, executives, and policymakers seeking analytical frameworks and insights to navigate the transformations AI brings to strategy, innovation and management.

Domitilla Magni is an Associate Professor at the Department of Economics and Business Management Sciences at Catholic University of the Sacred Heart in Milan, Italy. She has previously served as a Visiting Professor at international institutions such as Bayes Business School at City St. George's, University of London, Universidad Panamericana in Mexico City and New York University’s Stern School of Business. Dr. Magni’s research focuses on international business, knowledge management, digital transformation, and sustainability. She has published extensively in scholarly journals, including Technovation, Business Strategy and the Environment, and the Journal of Knowledge Management. In addition to her journal publications, Dr. Magni has authored and contributed to several books, including New Perspectives of Profit Smoothing (Palgrave Macmillan, 2019).