The speed at which digital technologies are developing are influencing how organizations compete. One of these technologies is artificial intelligence (AI) along with big data analytics. AI and big data are great at improving decision making, operational efficiency, and creating value over time. This article looks at AI and big data analytics, and the role of strategic leadership in sustaining a competitive advantage, primarily within the Malaysian Manufacturing and Automation Sector. This study incorporates the Resource-Based View and the Dynamic Capabilities frameworks and conceptualizes Big Data Analytics Capability (BDAC) as a strategic organizational resource that consists of technology, people, and organizational assets. The analysis identifies the supports and challenges that AI and analytics offer competitive differentiation, cost leadership, innovation, and strategic agility as well as the supports and challenges of data governance, cybersecurity, talent shortages, and ethics. The author of the article suggests that the adoption of AI and big data analytics does not sustain competitive advantage, however, strategic leadership does as it brings cohesion between technology, people, and processes. The study provides the Malaysian policy context, the national smart factory agenda and organizational practices to show that strong leadership, governance, and capability development, are the key to digital investments being converted into desirable strategic results