The role of artificial intelligence in organizational decision-making: Potential benefits and key challenges
Randeep Kaur and Amandeep Kaur
The integration of Artificial Intelligence (AI) into managerial decision-making is reshaping how organizations function, formulate strategies, and maintain a competitive edge. This paper examines the growing influence of AI in supporting management decisions, focusing on its applications in data analysis, forecasting, resource management, and enhancing operational efficiency. AI-driven technologies—such as machine learning and natural language processing—empower managers to analyze large volumes of data, uncover patterns, and derive actionable insights with remarkable speed and precision. The study explores both the advantages and the challenges that come with adopting AI, including enhanced decision accuracy, minimized bias, and cost efficiency, as well as concerns around data security, ethical implications, and overdependence on automated systems. Drawing on case studies and empirical evidence, the paper emphasizes the need to integrate AI tools with human expertise to ensure decisions remain well-rounded, ethical, and effective. The findings indicate that while AI does not replace human judgment, it plays a vital role in augmenting managerial capabilities, enabling smarter and more strategic decisions in today’s complex business landscape.
Randeep Kaur, Amandeep Kaur. The role of artificial intelligence in organizational decision-making: Potential benefits and key challenges. Int J Finance Manage Econ 2024;7(2):742-745. DOI: 10.33545/26179210.2024.v7.i2.507