AI-Driven Decision Making: Redefining Corporate Strategy in the Digital Era

Abstract

The modern rate of the artificial intelligence (AI) technology penetration into organizational processes is transforming the manner in which companies develop, examine and undertake corporate strategies. In this paper, we discuss the way AI-based decision making will change the nature of strategic planning, competitive positioning, and value creation in the digital age. According to the latest tendencies in the predictive analytics, machine learning and intelligent automation, the current research analyses the impact of data-driven insights on transforming organizations to build on reactive decision models to proactive evidence-based strategic models. With the synthesis of scholarly articles by various fields and a framework of the most recent examples in the field, the paper describes the ways AI may be used to achieve strategic agility, modelling of complex scenarios, and risk-management. The given results presuppose that the company relying on AI technologies becomes more accurate in its predictions, notices the changes in the market place more quickly, and elaborates the strategies that grow more and more adaptable to the fluctuating business environment. The other field that was explored by the research is the managerial and ethical consequences of AI-targeted decision-making, namely the issue of algorithmic bias, transparency, and redistribution of decision-making authority within the corporate hierarchy. The expanded strategic capacity can be achieved with the help of AI, but the reliance on the automated decision-making can destroy the human intuition and strategic decision-making unless it is well-balanced upon. The paper suggests an intermediate solution of making decisions, which combines human intelligence and algorithmic intelligence, ensuring criticality and local sensitivity. Generally, the paper has demonstrated that AI is not a technological change but a structural change that is transforming the conceptualization and use of strategy by organizations. According to the research, it may be concluded that organizations, which are able to combine AI potential with organizational culture, governance principles, and business strategies, will be better placed to survive in the digital age.