The ability to undergo digital transformation using artificial intelligence is becoming increasingly crucial for e-organizations, since a larger portion of their activities are now being driven by AI. This leads to an exploration of how e-organizations might effectively structure themselves to extract value from AI, as well as the various ways in which this value can be achieved. In light of this context, this study investigates how the capabilities of artificial intelligence can enhance organizational performance by instigating transformation in crucial organizational functions. We conducted a survey-based study to gather data from e-organizations on the indirect impact of AI capabilities on organizational performance. Entirely 345 valid questionnaires were utilized to collect data, which was further analyzed using partial least squares structural equation modeling (PLS-SEM). The results of our research indicate that artificial intelligence (AI) has a beneficial impact on organizational strategy, organizational environment, and fostering organizational structure. Although organizational strategy and organizational environment are enhancing organizational performance, our findings indicate that organizational structure has also a positive significant impact on organizational performance. The results of our research provide evidence of the essential resources that make up an artificial intelligence (AI) skill. Additionally, we demonstrate the impact of nurturing these capabilities on important organizational tasks, which in turn affects overall organizational performance.
