Strategic Leadership in AI-Driven Digital Transformation: Ethical Governance, Innovation Management, and Sustainable Practices for Global Enterprises and SMEs
DOI:
https://doi.org/10.70301/JOUR/SBS-JABR/2025/13/1/2Keywords:
Strategic Leadership, Ethical AI, Cross-Functional Synergy, Sustainability IntegrationAbstract
This The transformative force of AI-driven digitalization demands a paradigm shift in leadership, one that transcends conventional frameworks to address the complexities of disruptive innovation, ethical governance, and sustainable business strategies. This research critically examines the advanced leadership capabilities required to drive the adoption and integration of frontier technologies—including artificial intelligence (AI), machine learning (ML), blockchain, and fintech—within the operational ecosystems of multinational corporations and small-to-medium-sized enterprises (SMEs). Digital transformation is not merely a technological
transition but a profound organizational realignment, necessitating leaders with the vision and dexterity to dismantle silos, foster innovation, and institutionalize sustainability as a core strategic objective. Adopting a rigorous, qualitative methodology, the study synthesizes high- impact insights from global consultancies such as McKinsey & Company, Boston Consulting Group, and Deloitte, augmented by in-depth case studies of industry trailblazers like Microsoft, Siemens, and JPMorgan Chase. This multifaceted approach provides a strategic lens for understanding how effective leadership propels enterprises toward competitive resilience and market leadership in the digital economy. The analysis underscores the necessity of embedding ethical AI governance frameworks to ensure transparency, accountability, and equity—particularly in sectors where algorithmic decisions have significant societal impacts, such as
healthcare, finance, and law enforcement. Furthermore, cross-functional collaboration emerges as a cornerstone of organizational agility, unlocking value through interdisciplinary synergies. The integration of sustainability within digital strategies, exemplified by Siemens’ AI-enabled energy optimization systems, demonstrates the unparalleled potential of aligning technological innovation with environmental stewardship. This research concludes that strategic leadership is the pivotal differentiator in achieving sustained competitive advantage, operational excellence, and transformative impact in the AI era.
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