Integration of AI Technologies and Knowledge Management Enhances Business Process Efficiency and Competitive Advantage

The integration of Artificial Intelligence (AI) and Knowledge Management (KM) structures have emerged as a powerful strategy to streamline business processes and gain a competitive edge. The primary objective is to examine how the integration of AI and KM improves business efficiency, fosters innovation, and enhances competitive advantage across various industries, providing insights into the measurable benefits. Key variables include the level of AI integration, knowledge management (KM) effectiveness, business process efficiency, competitive advantage, and employee satisfaction. These factors were measured using standardized scales to determine their interrelations and impact on business performance. Data was collected using surveys from 750 employees across 10 companies, alongside 15 interviews with senior managers. SPSS was used to analyze quantitative data. SPSS was also used for correlation, regression, and descriptive statistics of key variables. There are strong positive correlations between business process efficiency and AI integration level (0.64) as well as between competitive advantage and KM effectiveness (0.67), and the results show that all variables have high mean scores, with business process efficiency having the highest mean (4.22) and employee satisfaction having the lowest (3.98). The investigation concludes that integrating AI technologies with KM systems significantly improves business process efficiency and provides a competitive edge. Organizations should prioritize these integrations to stay competitive, though challenges such as resistance to change must be managed.