Introduction and Purpose – Emerging technologies such as GenAI are revolutionizing the business landscape and drastically changing the way organizations operate. As digital transformation accelerates, more and more organizations are using GenAI to streamline operations and strengthen their competitive position. Therefore, this study explores the enabling factors and challenges when implementing GenAI in the organizational settings. Furthermore, it also examines the driving factors and leveraging benefits of GenAI in digital transformation efforts. 

Methodology – The study has an explorative qualitative research design with semi-structured interviews to gather data from different industries, and business areas to collect insights into the practical applications and challenges of GenAI. This approach allowed the authors to conduct an in-depth understanding of the context and complex phenomena, GenAI. Moreover, a theoretical framework was adapted and developed from the literature review that further guided the findings and analysis. 

Findings and Analysis – The findings and analysis identified enabling factors for a successful implementation; Technological, Organizational and Employees, and challenges concerning; Ethics, Regulations and Skill Gaps. Hence, these factors can be both enablers and challenges, resonating with the findings that emphasize adaptability and responsiveness in digital transformation efforts. Moreover, responsible AI is still an uncertainty due to the rapid evolvement of the technology, which means that regulatory compliance does not keep up and can act as a barrier, or enabler. It is clear that GenAI is not a straightforward path, as several enabling factors need to be in place before scaling the technology into the organizational settings. However, organizations face challenges with technological infrastructure, data management, change management, and skill gaps. Lastly, the driving factors and leveraging benefits of GenAI stems from increased business value, divided into; Efficiency and Productivity Enhancements, Innovative Product and Service Development, Knowledge Management, Personal Assistant, and Data-Driven Insights. 

Discussion and Conclusion – The discussion is central to this study, where the authors integrate theory and empirical findings to generate valuable contributions. Therefore, the most central elements merges and are further discussed; Technological Readiness, Organizational Dynamics, and Responsible AI, which resulted in the creation of a new framework that further guides the academic and practical discourse. Although GenAI facilitates significant value creation, efficiency and competitive advantage, organizations are often hampered by the lack of these factors in the pursuit of digital transformation. In conclusion, this study underlines the importance of understanding that there is not one single enabling factor that needs to be in place before an implementation, rather they need to coexist with each other for a successful integration, emphasizing the transformation where technological advances meet human skills. Additionally, the human interaction and monitoring is also crucial, by setting organizational policies and standards in the quest to adapt to new regulations and ethical standards.