Impact of Artificial Intelligence on Employee Productivity and Managerial Decision-Making

Abstract

Artificial Intelligence (AI) has emerged as a transformative technology influencing employee productivity and managerial decision-making in contemporary organisations. This study examines the impact of AI adoption on workplace efficiency, employee performance, and the quality of managerial decisions. AI-powered tools facilitate task automation, data analysis, workflow optimisation, and real-time information processing, enabling employees to improve productivity and managers to make faster, evidence-based decisions. However, the effectiveness of AI depends on factors such as technological infrastructure, employee competencies, organisational readiness, and ethical implementation. The study also considers potential challenges, including job displacement, algorithmic bias, data privacy concerns, and excessive dependence on automated systems. It emphasises the importance of human–AI collaboration in achieving sustainable organisational performance. The findings are expected to provide insights into how organisations can strategically integrate AI into business operations while maintaining accountability, employee engagement, and managerial effectiveness. The study contributes to understanding AI-driven workplace transformation and its implications for organisational growth and competitiveness