The Role of Artificial Intelligence in Developing Strategic Management Functions Through The Strategic Management Process

Abstract

This study investigates the role of Artificial Intelligence (AI) in developing Strategic Management Functions (SMFs) through the Strategic Management Process (SMP). Drawing upon a theoretical framework integrating AI technologies (Machine Learning, Expert Systems, Big Data Analytics) and core strategic functions (planning, organizing, leading, and controlling), the research empirically examines how AI influences SMP (formulation, implementation, and evaluation) and, in turn, enhances SMFs. Data were analyzed using Structural Equation Modeling (SEM). The findings confirm that AI has a significant direct and indirect impact on the development of SMFs, mediated by the SMP. The model explains 84.1% of the variance in SMP and 71.3% in SMFs. This study contributes to strategic management literature by empirically validating the mediating role of SMP in AI-driven organizational development. Practical implications highlight the importance of integrating AI across strategy and operations to build dynamic, adaptive, and intelligent enterprises.