Artificial Intelligence and Strategic Decision-Making in Modern Organizations: Opportunities, Challenges, and Managerial Implications

DOI

https://www.doi.org/10.59256/ijrtmr.20260603016

Published In

Volume 6, Issue 3 (2026)

Published Online

May-June 2026

Pages

136-145

Article Type

Original Article

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Artificial intelligence (AI) has developed into one of the significant technological changes occurring in modern organizational management and decision making. The development of big data, machine learning techniques, predictive modeling, and decision support systems have enabled organizations to perform better, adapt more efficiently and compete at a higher level. The present paper investigates the impact of AI in organizational decision making and examines the extent to which AI enhances organizational efficiency, adaptability and competitive capability. The paper employs a mixed methods design comprising quantitative survey data, qualitative research findings obtained from managers in diverse industry sector and an interview approach based on open-ended questions. It indicates that AI dramatically improves accuracy of decision making, forecasting capabilities and strategic adaptability but also poses challenges in terms of ethics, algorithmic bias, data privacy, technological reliance and organizational resistance. The paper asserts the need for combining human wisdom and AI output to make decisions that are both responsible and contextually relevant. This paper contributes to the body of knowledge of AI in management by proposing a framework that integrates both the technological and the managerial capabilities. The paper concludes that organizations that successfully integrate AI technologies with their strategic objectives and human centered management will be highly sustainable and innovative in the future.