THE ROLE OF ARTIFICIAL INTELLIGENCE IN STRATEGIC MANAGEMENT DECISIONS

Abstract

Artificial Intelligence (AI) is increasingly transforming organizational decision-making processes by enabling firms to analyze complex data and generate predictive insights that support strategic planning. Despite the rapid growth of AI adoption in business environments, limited empirical research has examined its direct influence on strategic management decision quality. This study investigates the role of AI adoption in enhancing strategic decision-making within organizations while considering the influence of digital capability and environmental uncertainty. A quantitative research design was employed using a dataset of 300 firms representing diverse organizational contexts. Descriptive statistics, correlation analysis, and multiple regression techniques were applied to examine the relationships among AI adoption intensity, digital capability, environmental uncertainty, and strategic decision quality. The findings indicate that AI adoption has a significant positive effect on the quality of strategic management decisions, suggesting that organizations utilizing advanced AI-driven analytical tools demonstrate improved decision accuracy and strategic responsiveness. Furthermore, digital capability strengthens the effectiveness of AI implementation, while environmental uncertainty moderates the relationship between AI adoption and decision outcomes. The study contributes to the strategic management literature by providing empirical evidence on the strategic value of AI technologies and highlighting the importance of organizational capabilities in enabling effective AI-driven decision-making.