AI in innovation: impacts on management functions

Outi-Maaria Palo-oja, Satu Rinkinen and Martti Mäkimattila

Organization Management Journal, 2025, vol. 23, issue 1, 132-147

Abstract: PurposeThis study aims to explore the impact of artificial intelligence (AI) on the management of innovation processes within organizations. The research focuses on how AI tools affect decision-making, resource allocation, leadership and performance control in innovation contexts.Design/methodology/approachA systematic qualitative literature review was conducted, analyzing 77 academic articles published between 2019 and 2024. The Planning, Organizing, Leading and Controlling (POLC) framework guided the analysis, enabling a structured examination of AI’s influence on management functions in innovation processes.FindingsAI can significantly enhance planning and organizing functions by enabling data-driven decision-making, automating tasks and optimizing steps of the innovation process. It can also improve quality assessment and risk identification. However, its role in leadership remains underdeveloped, particularly in fostering creativity, collaboration and human-centered leadership, highlighting the need for more empirical research on AI’s integration with human leadership skills.Research limitations/implicationsThe study is limited by its focus on English language publications, a specific publication period and narrowly defined search terms.Practical implicationsOrganizations should assess how AI can be tailored to their innovation strategies, particularly in enhancing planning and operational efficiency. Choosing appropriate tools for both operative and strategic management is essential, but their use does not remove the role of human judgement and intuition.Social implicationsAI’s integration into innovation management raises ethical and cultural considerations, especially regarding leadership and performance control.Originality/valueThis study advances innovation and management research by applying the POLC framework to analyze how AI transforms traditional management practices. It offers practical insights, highlights gaps in AI-supported leadership and calls for more empirical research to enhance organizational competitiveness.

Keywords: Literature review; Innovation management; Innovation process; Artificial intelligence; Organization management (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:omjpps:omj-11-2024-2358

DOI: 10.1108/OMJ-11-2024-2358

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