Organizations and communities face increasing complexity stemming from various economic, social, political, and technological changes, collectively described as a volatile, uncertain, complex, ambiguous (VUCA) environment. Artificial intelligence (AI) offers potential solutions for managing complexity and enhancing sustainability. However, the successful deployment and management of AI itself represents multifaceted challenges. We conceptualize AI implementation as “nested complexity” – the challenges of comprehensive AI integration encompass technological, ethical, and regulatory aspects, among others, nested within environmental complexity. Our proposed conceptual framework recognizes AI not only as an instrument for navigating complexity but also as a dynamic phenomenon contributing to the complexity within which organizations operate. It is imperative that business leaders approach AI implementation holistically while being cognizant of AI’s intricacies and constraints and its evolving nature. We posit that an adaptive, iterative approach, ongoing calibration, and upskilling enable AI to enhance organizational resilience and sustainability amidst complexity.