The integration of Artificial Intelligence (AI) into strategic innovation management is transforming organizational operations and enhancing competitiveness in today’s dynamic environment. This chapter explores both aspects of AI: innovation driven by AI and the application of AI to foster innovation. By reviewing current research, we offer a comprehensive perspective on effectively managing innovation in the age of AI. We also present practical case studies of AI-driven innovations and highlight key challenges and issues related to the application of AI in innovation processes. The chapter concludes with a discussion on the implications for both theory and practice.