AI is evolving in a way that mirrors how past technologies were initially adopted. Right now, most organizations are adding AI tools to their existing systems without rethinking their overall processes. But to fully unlock the potential of AI, companies will eventually need to build their operations around it.

As Generative AI continues to develop, it’s becoming more context-aware, capable of understanding situations and making decisions. This shift will move AI beyond simply improving individual tasks. It will enable smarter organizational interactions, powered by technologies like Knowledge Graphs for understanding and Intelligent Agents for decision-making.

Over time, businesses will transform into AI-Centered Enterprises (ACEs), using this advanced technology to create new value in internal marketplaces. Unlike past approaches like Business Process Reengineering, this change isn’t about completely overhauling processes. Instead, it’s about rethinking how information flows within organizations. With Context-Aware AI, companies can identify and fix information bottlenecks, enabling smoother, more dynamic communication through flexible, agentic AI platforms rather than rigid, tightly-structured systems.

Understanding this transformation requires a basic understanding of how businesses work. It also means recognizing the limits of AI and knowing where human expertise is still essential. This book offers that knowledge, along with real-life examples and practical tips to help businesses navigate this transformation.

Ram Bala is an Associate Professor of AI & Analytics at Santa Clara University's Leavey School of Business. In addition to his cutting edge research on pricing, marketplace design, and supply chain decisions in dynamic markets, he has built products around these applications at leading startups and Fortune 500 companies. He is actively involved in AI-driven business transformation, co-leading the Prometheus Lab on AI and Business, and co-founding Samvid, an Agentic AI startup for logistics and supply chain management.

Natarajan Balasubramanian is the Albert & Betty Hill Endowed Professor at the Whitman School of Management at Syracuse University. He studies how technology, human capital, organizational learning, and innovation contribute to business value creation.

Amit Joshi is a Professor of AI, Analytics and Marketing Strategy at IMD, specializes in helping organizations use artificial intelligence and develop for their big data, analytics and AI capabilities. An award-winning professor and researcher, he has extensive experience of AI and analytics driven transformations in industries such as banking, fintech, retail, services, automotive, telecoms and pharma.