This study investigates the impact of artificial intelligence (AI) capabilities on brand management and value creation, proposing a comprehensive competitiveness framework for firms. Utilizing a panel dataset spanning 26 years across 30 countries, Arellano-Bond and Blundell-Bond System GMM estimations examine the relationship between AI stock, AI impact, and brand value. The findings reveal that AI stock and impact significantly contribute to brand value, with their interaction yielding synergistic effects. The study highlights the mediating role of gross value-added (GVA) in the relationship between AI stock and brand value, suggesting that AI-driven productivity gains enhance brand equity. Investments in computing and communication equipment and efforts to strengthen brand relationship strength (BRS) also influence brand value. Integrating AI capabilities with market research amplifies brand value through data-driven insights and consumer engagement strategies. Furthermore, novel AI-enhanced measurement methodologies capture brand value creation more accurately than traditional metrics. These findings offer valuable insights for firms seeking to leverage AI capabilities to enhance brand equity and gain a competitive advantage in a rapidly evolving marketplace.