Critical Review of Digital Innovation Literature and Artificial Intelligence as a Driver of Sustainable Competitiveness in the Era of Society 5.0

Abstract

This research examines how digital innovation and artificial intelligence shape sustainable economic competitiveness in the Society 5.0 era. To ensure a systematic and transparent research process, this research uses the Systematic Literature Review (SLR) method along with the PRISMA framework. A total of 200 articles published from 2016 to 2025 were found from the AI Index, Scopus, OECD, and World Bank databases. After going through the selection process based on inclusion and exclusion criteria, seven articles were selected for evaluation. Data is analyzed thematically to identify recurring problems related to technology, management, and inclusion. Research results show that AI-based digital innovation increases productivity, efficiency, and power savings, especially in countries with high digital readiness and adaptive governance. However, the digital divide, cyber security risks, and low digital literacy are still big problems, especially in developing countries. This study found that to maintain sustainable competition in the Society 5.0 era, technological advances, moral governance, and social inclusion must work together. Governments, educational institutions, and the world industry must work together to strengthen digital resilience, develop human resources, and ensure that the implementation of AI is carried out morally and inclusively.