A study on  AI's Transformative Impact on Strategic Decision-Making

Dr .Srilakshmi Ramu; Prerana Bansal

doi:10.71097/IJSAT.v16.i2.6335

A study on AI's Transformative Impact on Strategic Decision-Making

Author(s)	Dr .Srilakshmi Ramu, Prerana Bansal
Country	India
Abstract	Artificial intelligence (AI) is revolutionizing strategic decision-making by shifting organizations from intuition-based approaches to data-driven methodologies. It is transforming management practices, fundamentally changing how organizations develop, assess, and execute strategic decisions. This article explores AI’s profound influence across industries and examines the enabling role of AI in promoting decision accuracy, operational efficiency, and predictive intelligence across various sectors, including health care, finance, manufacturing, retail, and logistics. In healthcare, AI improves diagnostics and treatment personalization, with tools like Google’s DeepMind outperforming human radiologists. In finance, AI enhances fraud detection and algorithmic trading, as seen in Mastercard’s real-time prevention systems. AI is transforming industries by enhancing efficiency and decision-making. In manufacturing, AI-driven predictive maintenance minimizes waste and downtime, while in retail, AI is optimized for inventory management and personalized marketing strategies. In logistics, AI is leveraged for routing optimization and accurate demand forecasting. While AI offers substantial benefits, such as improved accuracy and operational efficiency, its adoption is accompanied by significant challenges, including ethical dilemmas, labor displacement, regulatory constraints, and algorithmic bias. Data privacy concerns and the high cost of implementation, particularly for smaller enterprises, complicate adoption. The article also examines how AI adoption faces significant challenges, ethical dilemmas, algorithmic bias, labor displacement, and regulatory constraints. The study emphasizes balancing AI automation with human oversight to ensure fairness, transparency, and accountability. The research advocates for responsible AI adoption, integrating ethical governance and regulatory compliance to harness AI’s potential while mitigating risks. By fostering AI-human collaboration, organizations can achieve sustainable innovation, ensuring strategic decisions are not only data-driven but also equitable and impactful across diverse industries.
Keywords	Keywords: Artificial Intelligence, Strategic Decision-Making, Data-Driven, Applications, Regulatory Constraints
Field	Computer > Artificial Intelligence / Simulation / Virtual Reality
Published In	Volume 16, Issue 2, April-June 2025
Published On	2025-06-18
DOI	https://doi.org/10.71097/IJSAT.v16.i2.6335
Short DOI	https://doi.org/g9qqxw

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A study on AI's Transformative Impact on Strategic Decision-Making

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