The study was conducted on 125 US based high-tech firms from software engineering, hardware production, biotechnology, and telecommunications. Senior-level executives, including CEOs, board members, and CTOs, provided insights through structured questionnaires. Key findings indicate that AI adoption significantly enhances organizational capabilities in terms of employees’ innovation, creativity, and experimentation. Moreover, AI adaptation positively impacts decision making thus yielding more accurate and timely valuable decisions. These findings contribute to both theoretical understanding and managerial practice by guiding strategic investments in AI technologies, fostering innovation, and advocating for ethical AI deployment practices. Future study should examine longitudinal impacts across industries and regions to optimize benefits and minimize risks in digital transformation efforts. It should also integrate qualitative methods for deeper insights and appropriate AI governance systems.