AI-Enhanced Strategic Management: Improving Decision-Making Efficiency in Modern Enterprises

With a mixed-method design and based on data from 171 organizations from a range of industries, the question of the impact of AI technology on organizational decision-making is addressed. This study formulates and tests an integrated model of AI's impact on time, accuracy, and resource utilization efficiency in decision-making. Evidence proves that companies enabled by AI achieve more than 55.5% multi-dimensional efficiency improvement with 370% faster decision-making, 34.8% increase in forecast accuracy, and positive ROI after one and a half years of having implemented AI enabling tools. These key findings are captured by a model that represents data infrastructure maturity, organization level readiness, enterprise purpose vis-a-vis business goals level alignment including basic functions and potential AI functions. In the theory of strategic management, these findings reinterpret responsive algorithmically-augmented systems—AI-enabled systems—not just as automation systems but rather cognition adaptive systems that reconstruct agile decision-making out of complex systems thinking providing implementable approaches for achieving competitive agility through AI for the handling of complex business dynamics.

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Publication Details

Journal
Innovative Organizational Design
Published
2025-09-16
DOI
https://doi.org/10.63808/iod.v1i2.124
Primary Topic
Impact of AI and Big Data on Business and Society
Type
article
Field-Weighted Citation Impact
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article

AI-Enhanced Strategic Management: Improving Decision-Making Efficiency in Modern Enterprises

Changhong Zhu
Innovative Organizational Design
Impact of AI and Big Data on Business and Society
article

AI-Enhanced Strategic Management: Improving Decision-Making Efficiency in Modern Enterprises

Changhong Zhu
article en

Abstract

With a mixed-method design and based on data from 171 organizations from a range of industries, the question of the impact of AI technology on organizational decision-making is addressed. This study formulates and tests an integrated model of AI's impact on time, accuracy, and resource utilization efficiency in decision-making. Evidence proves that companies enabled by AI achieve more than 55.5% multi-dimensional efficiency improvement with 370% faster decision-making, 34.8% increase in forecast accuracy, and positive ROI after one and a half years of having implemented AI enabling tools. These key findings are captured by a model that represents data infrastructure maturity, organization level readiness, enterprise purpose vis-a-vis business goals level alignment including basic functions and potential AI functions. In the theory of strategic management, these findings reinterpret responsive algorithmically-augmented systems—AI-enabled systems—not just as automation systems but rather cognition adaptive systems that reconstruct agile decision-making out of complex systems thinking providing implementable approaches for achieving competitive agility through AI for the handling of complex business dynamics.

Innovative Organizational DesignVol. 1(2)
Lincoln University College (MY)
Openalex Percentile: Top 71%
Impact of AI and Big Data on Business and Society
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