AI-Driven Decision Making and Business Growth: Evidence from Public Enterprises in South-East Nigeria

Abstract

As organizations navigate an increasingly digital economy, Artificial Intelligence (AI) has become a strategic resource shaping how firms make decisions, run operations, and stay competitive. Yet there is still limited empirical evidence on how AI-driven decision making translates into tangible business growth and competitive advantage within public sector organizations in developing economies. This study examines how AI-driven decision-making affects business growth and competitiveness among selected public enterprises in South-East Nigeria. Using a cross-sectional survey design, the study drew from a population of 1,536 management and senior technical staff across state water corporations, internal revenue services, transport corporations, and electricity distribution agencies in the five South-East states. The Taro Yamane formula yielded a sample size of 317 respondents; 301 valid responses were retrieved (94.9% response rate). The study is anchored on the Resource-Based View and Dynamic Capabilities Theory. Data were analyzed using descriptive statistics and Structural Equation Modeling (SEM). Results indicate that AI-driven decision making significantly enhances organizational competitiveness, which in turn improves operational efficiency and innovation capability, thereby driving business growth. The study concludes that AI adoption plays a critical role in driving sustainable performance within public enterprises and recommends that stakeholders invest in AI infrastructure, digital skills, sound data governance, and ethical AI frameworks. The study extends the Resource-Based View and Dynamic Capabilities Theory into the context of AI adoption within public enterprises.