This study examines how digital transformation and AI-enabled management practices jointly
influence organizational performance. Drawing on digital transformation literature and research on
AI capability and algorithmic management, the study proposes that performance gains from digital
transformation are strongest when AI is embedded into managerial routines such as decision-support,
workforce planning, monitoring, and performance evaluation. The research framework conceptualizes
digital transformation maturity as the foundation that enables data integration and process digitization,
while AI-enabled management practices act as a mechanism translating these digital capabilities into
measurable outcomes. Comparative results indicate that organizations with higher levels of digital
transformation and stronger AI-enabled management practices demonstrate superior performance
across key indicators including productivity, operating cost reduction, decision-making speed, revenue
growth, and innovation output, highlighting the role of AI-driven managerial redesign in strengthening
transformation benefits.
