This thesis explores the manifestation of AI capabilities in an incumbent within the forest industry for generating business value. The primary research gap identified is the lack of empirical evidence on how AI capabilities contribute to business value in incumbents. Drawing upon the AI capability framework and interviews with leadership roles, the research identifies and categorizes AI capabilities into Human, Intangible, Tangible, and Governance dimensions. Theoretical contributions include adding Governance as a distinct dimension to the existing AI capability framework and expanding the current literature on how AI capabilities manifest in an incumbent. Practical insights propose a hybrid learning approach, emphasizing AI training, collaboration with experts, and establishing internal networks and innovation labs. Effective AI integration relies on clear leadership guidance.