Abstract:   Many businesses are engaging Artificial Intelligence (AI) technology to enhance their operational efficiency and ensure business success. The engagement of AI technology has been promising in terms of offering significant changes in existing business activities. Therefore, this study is evaluating the role of AI technology in improving operational efficiency, customer engagement, and competitive advantage. For this purpose, this research relies on secondary data of US firms to quantify the influence of AI technology by using the regression analysis techniques. The findings of this study confirm that AI technologies produce business transformations, offering increased operational efficiency by improving their processes and procedures. Businesses are enhancing their customer engagement through AI systems' involvement in client engagement systems to obtain enhanced customer response to their products and services. Results also specify that the use of AI systems within contemporary business structures is increasing market dominance. Furthermore, the findings elucidate that the type of industry also plays a key role in enhancing the business outcomes of using AI technology. These findings are supported by Dynamic Capability Theory (DCT) that due to increased AI involvement, firms are achieving improvement in operations, customer engagement, along market dominance. Moreover, this study supports the notion that AI platforms oversee customer product interaction and improve the organizational processes with better customer engagement activities. The application of AI tools using chatbots and personalized recommendation systems offers better business-customer interaction and better customer satisfaction through a deeper business-customer relationship.

Keywords:   AI technologies, business outcomes, operational efficiency, customer engagement, customer satisfaction, competitive advantage

Publisher:   ILMA UNIVERSITY

Published:   5 January 2026

Issue:   Issue 2 (2026-01-05) : Volume 21

E-ISSN:   2409-6520

P-ISSN:   2414-8393