Figure 1
The figure presents AI capability building as an interaction between individual- and organisational-level dynamic capabilities across three stages: sensing, seizing, and transforming. At the individual level, these stages involve awareness and skill development, idea generation and experimentation, and adaptability and innovation. At the organisational level, they correspond to strategic alignment, strategy and scalability supported by leadership, and structural change and commitment. Capability building is shaped by both bottom-up and top-down influences. Enabling factors include mentorship, knowledge sharing, collaborative planning, pilot programmes, appropriate implementation models, and the adoption of AI-driven practices. Barriers include insufficient training and support, bias towards internal knowledge, uncollaborative planning, external barriers to AI adoption, unsuitable procurement models, and data or implementation failures. Two mechanisms connect the stages: activation, where employees turn insights into pilots while leaders provide direction and safe spaces for experimentation; and scaling and embedding, where successful pilots are integrated into everyday work, organisational resources, and structures.Transformation mechanism between dynamic capability categories. Source: Authors' own work