The Impact Of AI On Strategic Decision Making In Modern Management

Abstract

The explosive rise of the Artificial Intelligence (AI) has introduced an explosive change in the contemporary phenomenon of management, in particular, the field of making strategic decisions. This paper will discuss the advantages of AI-based applications and analysis tools to managerial functions because of their capacity to increase accuracy, speed, and objectivity of strategic decisions. It focuses on how AI technologies are applied to decision-support systems, such as machine learning, predictive analytics and natural language processing, and the significance of such procedures in working with multifaceted data and identifying business trends. The paper discusses the application of AI in reducing human bias, resource allocation, and evidence-based planning in dynamic and competitive environments as well. Furthermore, it evaluates the challenges that organizations face during the implementation of AI in their strategic processes, including ethical and data privacy matters, technical and managerial flexibility concerns. The paper provides an understanding of how the relationship between human judgment and algorithmic intelligence in corporate strategy has changed as a synthesis of the latest empirical findings and theoretical perspectives. According to the findings, even though AI can be useful to augment the accuracy and vision of strategic management, effective performance depends on the maintenance of the equal partnership between the human and machine-based insights. Lastly, the study shows that the future of strategy decision making will rely on the manner in which leaders will embrace AI as an instrument and an ally to come up with sustainable and informed managerial practices.