<p>Artificial intelligence (AI) will be performing 30% of creative and knowledge-intensive tasks by the year 2030. The use of affordable user-friendly generative AI, such as ChatGPT, has consequently experienced a significant surge within the corporate sector. Concurrently, it is assumed that human expertise, which refers to the business and technical knowledge in AI of individuals, is gradually losing its significance. However, until recently, human expertise was regarded as the primary catalyst for the positive effect of open innovation on organizational agility. Hence, this study aims to examine the mediating effect of AI capability on the relationship between open innovation and organizational agility, particularly in the presence of human expertise. The moderated mediation was tested with survey data. The main finding reveals that 93% of the variance of agility is explained by the effect of open innovation that is transmitted by the mediator. Moreover, human expertise only moderates the pathway between AI capability and organizational agility. The study offers a realistic understanding of the role of individuals in the context of increased use of AI in firms, in contrast to prior research that predicted an abrupt substitution of personnel with AI. AI capability, particularly generative AI (Gen-AI), is essential for the efficient generation of innovation ideas and prototypes, as well as the identification of unconventional commercial exploitation routes by leveraging data from external sources. Nevertheless, human expertise is essential to extract more accurate and contextually relevant outcomes from Gen-AI.</p>