This Paper explores the influence of AI capabilities on organizational performance and creativity of the Egyptian firms, using the Resource-Based Theory (RBT) framework. RBT categorizes resources into tangible, intangible, and human resources. Employing a deductive approach, the study utilizes qualitative data gathered through a survey, resulting in 150 valid responses. Findings indicate that tangible and human resources positively impact organizational performance and creativity, whereas intangible resources have a negative effect. These results confirm the hypothesis that AI capabilities significantly enhance both organizational creativity and performance, providing critical insights for firms aiming to leverage AI for competitive advantage in Egypt