Abstract
Purpose: This paper explains how AI-enabled digital transformation creates, or fails to create, operational, service, reputational, and organizational value in aviation. It develops an aviation-specific multilevel framework that distinguishes technological resources from organizational transformation capability and incorporates human–AI collaboration, passenger heterogeneity, irregular operations, ecosystem coordination, and distributed accountability.Design/methodology/approach: The study uses a structured integrative review and evidence-informed conceptual framework design. It synthesizes peer-reviewed research on digital transformation, dynamic capabilities, IT business value, human–AI collaboration, aviation service quality, passenger experience, electronic word-of-mouth, smart airports, organizational readiness, and performance. The synthesis differentiates technology categories, maps constructs across levels of analysis, and develops propositions for future testing.Findings: Technological deployment does not automatically constitute transformation. Predictive AI, conversational AI, automation, biometrics, robotics, self-service systems, and smart infrastructure operate through different mechanisms and require different organizational conditions. Their effects depend on organizational transformation capability, including leadership, process redesign, workforce capability, data and technology architecture, governance, and ecosystem coordination. Human–AI augmentation becomes more important as tasks become ambiguous, disrupted, emotionally sensitive, or exception-intensive. Passenger outcomes vary with digital readiness, perceived control, privacy sensitivity, language proficiency, travel familiarity, and accessibility needs. The framework separates an operational-capability pathway from a passenger-service pathway and identifies distributed accountability as a source of cross-organizational value loss.Practical implications: The paper provides an eight-stage aviation implementation and decision framework covering problem definition, technology classification, readiness assessment, accountability mapping, human–AI process design, controlled piloting, multidimensional measurement, and scale or discontinuation decisions.Originality/value: The paper explains the organizational and interorganizational mechanisms through which differentiated technologies generate aviation value. It positions organizational transformation capability as the central conversion mechanism and operational context, human escalation, and passenger heterogeneity as substantive boundary conditions.