Generative AI in Strategic Management: Transforming Business Models For Sustainable Value Creation

Abstract

The integration of generative artificial intelligence (AI) into strategic management has emerged as a critical driver of business model innovation and sustainable value creation. This study examines PETRONAS's comprehensive digital transformation framework, focusing on how generative AI technologies are strategically implemented to enhance decision-making processes and drive sustainable business outcomes. Through a qualitative case study methodology utilizing secondary data from publicly available sources, this research analyzes PETRONAS's AI-driven initiatives, including the revolutionary Jom AI (J.AI) platform launched in July 2023. The findings reveal that PETRONAS's strategic implementation of generative AI has significantly enhanced knowledge discovery capabilities, operational efficiency, and sustainable value creation. The study contributes to the literature by providing empirical evidence of how large Malaysian corporations can successfully integrate generative AI into their strategic management practices while maintaining focus on environmental, social, and governance (ESG) objectives. The research demonstrates that generative AI, when strategically implemented within a robust governance framework, serves as a catalyst for sustainable business model transformation in the energy sector.