Business Engineering as a Foundation for Sustainable AI Transformation: The ADAIEM Framework
Despite the strategic priority of digital transformation and Artificial Intelligence (AI), many organizational initiatives fail to achieve sustainable outcomes due to insufficient institutional readiness and fragmented governance. To address this gap, this paper introduces the Abuhaimed Digital & AI Excellence Model (ADAIEM), a comprehensive conceptual framework designed to foster institutional readiness and guide enduring transformation. The framework integrates three interdependent pillars: Institutional Foundation: Governance, strategy, organizational structure, processes, knowledge management, and talent development, Digital Enablement: Core digital systems, data infrastructure, automation, analytics, and platforms, and AI Enablement: AI governance, intelligent agents, decision-support mechanisms, and enterprise-wide adoption. Central to the framework is the ADAIEM Conditional Transformation Logic (ACTL), which utilizes capability gates to enforce progression only when prerequisite maturity levels are met. Unlike traditional static maturity models, ACTL actively facilitates continuous capability development, mitigates execution risks, and reinforces operational sustainability. Grounded in Business Engineering and organizational capability theory, ADAIEM advances the literature on digital transformation and AI governance by offering a structured, risk-mitigated pathway toward high-maturity, AI-enabled enterprise operations. Building on the concepts of Business Engineering and based on a variety of organizational and transformation theories, ADAIEM brings together governance, organizational design, knowledge management, talent development, digital capabilities and AI enablement under a single transformation architecture. The proposed framework offers a real-world action plan for sustainable AI transformation and a theoretical understanding of the phenomenon of AI transformation.