Citation :

Abirami, Swasti Karna, 2025. "Artificial Intelligence in Strategic Decision-Making: Implications for Modern Management Practices" International Journal of Community Empowerment & Society Administration [IJCESA]  Volume 2, Issue 2: 22-27.

Abstract :

Integrating AI in strategic decision-making is a huge departure to the way businesses are run today as we might know it and could change management industry wide. Traditional decision-making tools that are largely human intuitive, experience-based and qualitatively judgment-driven might be inadequate to tackle the size, speed and complexity of today’s challenges with business environments getting more complex, uncertain and data oriented. These are ubiquitous AI technologies such as machine learning, predictive analytics, and natural language processing that allows organizations to process large volumes of structured and unstructured data in order to uncover relevant insights driving an evidence based decision. AI enhances human performance by automating data analysis, scenario planning, and predictive modeling to help managers make well-informed decisions more quickly with better data.In this commentary, the impact of artificial intelligence (AI) on contemporary management is presented in relation to how it may increase creativity and innovation, operational effectiveness as well as quality decisions. It explores how AI is allowing organizations to interactively and strategically react to new opportunities, threats or market equilibriums through providing real-time insights into consumer behaviour, market shifts and competitive strategies. It also touches on how AI can foster teamwork and decentralize decision-making by allowing cross-functional teams to see the results of analyses without removing human judgment. True, AI has the promise to change the game in strategic management,...... but it also comes with trade-offs—including issues of accountability, transparency, algorithmic bias and ethical governance. It needs careful oversight and good governance, as data-driven models can accidentally reinforce biases or lead to decisions that are hard to explain.Through the role of AI in corporate governance and entrepreneurship, to project management and HR practices" The paper shows that decision making processes across different organisational contexts are complicated by AI" using empirical studies, case study and theoretical viewpoints. It further emphasizes the need to raise managers' and leadership's AI literacy for ethical AI. The paper ends by speculating about the trajectory of future developments in this line, such as the ongoing integration of AI with human cognitive capacities, the use of AI for strategic responding in real time, or the construction of morally competent and accountable systems.Finally, this study has demonstrated that AI is a strategic resource to firms in redefining decision diversity and strategic agility as well as its competitive implications rather than just a technical device. And those able to make the most of AI’s potential — with moral considerations and practical question marks in place alongside it — are poised to drive innovation successfully as they grapple with the complexity of today’s business world with solution for long-term growth.

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Keywords :

Artificial Intelligence, Strategic Decision-Making, Business Strategy, Machine Learning, Data Analysis, Business Model, Ethical Considerations, Future Trends.