AI-Augmented Decision-Making and Organisational Agility: A Dynamic Capabilities Perspective

Abstract

While evidence regarding the contribution of Artificial Intelligence (AI) to organisational agility is still scarce and fragmented, Artificial Intelligence (AI) is used to support organisational decision-making. This systematic review aimed to summarise empirical findings on the link between AI-enhanced decision-making and an organisation's agility using the Dynamic Capabilities paradigm. Empirical studies relevant to this report were identified through a structured search, screening and appraisal process of publications in the following timeframe: 2018-2026. Initially, it returned 1284 records. Following removal of 312 duplicate records, 972 records were subsequently screened by title and abstract and full-text assessment of 131 studies was conducted. Six (6) empirical studies were then selected for the synthesis after implementing the last eligibility criteria. The included studies were evaluated for methodological quality using the Mixed Methods Appraisal Tool (MMAT) and the results were aggregated thematically. The findings suggest a positive relationship between AI capabilities and organisational decision making and agility. It was discovered that AI has a positive impact on information processing, decision speed and decision-making performance, and decision-making agility was an important pathway that explains how AI contributes to organisational performance. The results also show that AI can help with organisational sensing by better recognizing and understanding relevant information, and with organisational seizing, by better evaluating alternatives and responses to opportunities more quickly. However, there is limited evidence that directly links AI and organisational reconfiguring. The review also reveals that data quality, employee skills and organizational readiness and proper decision structure have a bearing on the value-added from AI. The study finds that AI can enhance organisational agility, provided that there are suitable organisational capabilities and processes.