AI-DRIVEN BUSINESS DECISION-MAKING: TRANSFORMING MODERN BUSINESS PERFORMANCE AND STRATEGY

Abstract

Artificial Intelligence (AI) is becoming an integral part of contemporary business management by enabling organisations to process large datasets, recognise patterns, generate forecasts and support managerial decision-making. Conventional decision-making relies largely on historical information, managerial experience and manual interpretation of data, whereas the rapid growth of digital information calls for faster and more analytical approaches. This paper examines the contribution of AI-driven decision-making to business performance and strategic management. It discusses the use of AI in marketing, customer relationship management, sales forecasting, financial management, inventory and supply-chain management, fraud detection, human resource management and strategic planning. It also considers the benefits of AI, including improved efficiency, data-based decision support, customer personalisation, cost management and organisational responsiveness, together with concerns relating to data privacy, cybersecurity, algorithmic bias, transparency, employee skills, implementation costs and excessive dependence on automated outputs. The study adopts a conceptual and descriptive approach based on secondary information from academic literature, institutional reports and recognised AI governance frameworks. The analysis indicates that AI strengthens business decision-making when it is supported by reliable data, organisational capabilities, managerial judgement and effective governance. The paper concludes that AI should function primarily as a decision-support mechanism rather than a replacement for human decision-makers, and that its strategic and responsible adoption can improve organisational performance and build sustainable business capabilities.