Abstract
Organizational leaders face growing challenges with traditional capabilities to meet stakeholder demands in a continuously evolving Artificial Intelligence (AI)-driven landscape. This study takes an initial step to empirically investigate and present findings on leaders' AI-driven capabilities and their influence on business model innovation through the mediating role of leaders’ agility. Data were collected through a web-based survey of 419 full-time employees in Bangladesh’s financial services industry. The results reveal that AI-driven capability significantly impacts business model innovation and leaders' agility in a resource-poor environment. Additionally, leaders' agility partially mediates the relationship between AI-driven capability and business model innovation. These findings contribute to the dynamic managerial capability theory and offer insights into modern leadership practices in AI-driven organizations operating in a resource-poor environment.