This study explores how artificial intelligence (AI) can enhance smart knowledge creation and sharing within organizations. AI serves as a catalyst for developing intelligent systems that foster innovation, streamline processes, and support human–machine collaboration. The research highlights how AI technologies—such as machine learning, neural networks, and deep learning—facilitate knowledge generation, storage, retrieval, and dissemination across digital platforms. It also emphasizes the symbiotic relationship between humans and intelligent agents, showing how AI augments human capabilities rather than replacing them. Through a comprehensive literature review and empirical validation, the findings demonstrate that AI significantly improves knowledge management efficiency, decision-making, and collaborative innovation. Ultimately, the study underscores AI’s transformative role in shaping sustainable competitive advantage in the digital era.