Artificial Intelligence and Strategic Decision-Making: Transforming Business Performance in the Digital Economy

Abstract

One of the key technologies influencing organizational change in the digital economy is artificial intelligence (AI). Existing processes tend to struggles when the required data becomes too large or the changes in the market rapid – both attributes present in the data saturated business world we operate in today. Businesses can leverage AI-enabled analytical capabilities to transform raw, organized and unstructured, business data into actionable intelligence, thereby driving quicker, more data-driven, and smarter strategic decision-making. Effective strategic decision-making and the implementation of AI into the strategic domain however requires both highly analytical models and an organizational structure which balances technological capabilities with business priorities. This paper develops an AI-enabled system for decision-making which helps in optimizing business performance in the digital economy context. This framework integrates data acquisition and interpretation business processes with intelligent analytic applications and predictive modeling in combination with continuous feedback mechanisms that monitor organizational performance in order to enable quality improvements in decision and in the performance of the organization. The overall objective of this research is to promote for firms enable to promote of the business grow. The application areas of AI in business and their possible impact on these functions such as business intelligence, forecast for products, risk appraisal, and optimization of the resources and performance measurement are also presented. A methodical research design utilizing key performance measures related to the accuracy of business decisions, efficiency of business operation, and overall financial performance of a business entity, is undertaken to evaluate the viability of the AI integrated framework. The results concluded that businesses will benefit from higher responsiveness, a decreased level of decision-making uncertainty, an optimization in resource utilizations and a competitive strength in strategic planning for long-term by utilizing strategic decisions. This framework can serve as a useful practical reference guide to any firm wishing to integrate AI for a sustainable business in a new business landscape.