The Intersection of AI and Strategy: Navigating Challenges and Opportunities

This study explores the transformative potential of artificial intelligence (AI) in strategic management, focusing on its capacity to drive innovation, enhance efficiency, and address complex ethical and regulatory challenges.A key objective is to establish best practices that help firms mitigate risks associated with AI adoption while ensuring sustainable growth.AI's role in decision-making, operational efficiency, and competitive advantage, highlighting its impact across various business functions such as marketing, supply chain, and risk management.It also addresses the broader socio-economic implications of AI beyond organizational benefits.The study employs a secondary research approach with a descriptive research design, utilizing thematic analysis of scholarly articles, industry reports, and empirical studies.A positivist philosophy guides the research, ensuring an objective evaluation of AI's role in strategic management.The findings indicate that AI-driven automation is reshaping business operations, influencing workforce dynamics, and raising societal concerns.Through systematic analysis of twelve relevant studies, the research underscores the pivotal role of data in adapting to an evolving business landscape powered by emerging technologies.The conclusion and recommendations emphasize the need for robust AI governance frameworks and continuous learning environments within organizations.Establishing structured AI implementation strategies and fostering innovation will be crucial for businesses to leverage AI effectively while addressing ethical and regulatory challenges.