This paper systematically investigates the role of artificial intelligence (AI) in innovation management. It identifies the innovation capabilities that are either required for or generated by AI adoption, distinguishing between enabling and enhancing capabilities. The authors propose a novel taxonomy of AI applications in innovation management, categorizing them as replace, reinforce, and reveal. Using the technological-organizational-environmental (TOE) framework, the research reviews 62 empirical studies to understand the multifaceted impact of AI. This study contributes to the innovation management field by clarifying AI's role and offering a research agenda for future explorations into AI adoption. By understanding these themes, managers can better assess the potential of AI within their organizations and plan for implementation of AI in innovation management.