Nokia Oyj (NOK.US) has established a new artificial intelligence division and recruited a former Intel executive to spearhead the company's technological advancement in this field, marking part of the strategic transformation driven by new CEO Justin Hotard. Nokia announced on Wednesday that Pallavi Mahajan will lead Nokia's newly formed "Technology & AI" organization, which will encompass its research and development center — Nokia Bell Labs. Mahajan previously served as Vice President and General Manager of Intel's Data Center and AI division. Hotard also joined Nokia from Intel, where he had previously led that division. Nokia is looking to capitalize on the AI boom momentum to compete with network companies such as Ciena (CIEN.US) by connecting data centers to achieve this goal. Hotard, who assumed Nokia's presidency in April this year, believes this new initiative will diversify the company's customer base and alleviate telecom operators' spending shortfalls. The newly established division will collaborate with the company's network infrastructure division to develop technologies for connecting data centers. Nokia has also recruited Konstanty Owczarek as Chief Corporate Development Officer to lead a new department covering mergers and acquisitions business and its investment platform — NGP Capital. Owczarek previously held executive positions at Hewlett Packard Enterprise. Both Mahajan and Owczarek will join Nokia's leadership team on October 1st. The company's current head of technology and strategy, Nishant Batra, will depart at the end of September.