Artificial Intelligence In Business: Evaluating The Transformative Role Of AI In Managerial Decision-Making Efficiency

Abstract

Artificial Intelligence (AI) is driving a transformative shift in the Indian Information Technology sector which demands organizations to improve their decision-making efficiency by tackling issues like data-driven uncertainty and automation complexity along with strategic adaptation needs. The investigation evaluates how AI-Powered Business Intelligence (ABI), AI-Enabled Process Automation (APA), AI-Driven Strategic Innovation (ASI), AI-Based Customer Experience Management (ACEM), and AI-Integrated Risk Management (AIRM) affect AI-Driven Decision-Making Efficiency (DDE). The study followed a descriptive-correlation design to collect data from 150 IT managers based in major Indian IT hubs while using validated measurement scales and Structural Equation Modeling (SEM) in AMOS for hypothesis testing. The study shows significant positive effects of ABI (β = 0.238, p < 0.001), APA (β = 0.124, p = 0.002), ASI (β = 0.289, p < 0.001), and AIRM (β = 0.212, p < 0.001) on DDE while ACEM (β = 0.019, p = 0.003) demonstrates a weaker impact. The research extends Resource-Based View (RBV) and Dynamic Capability Theory by examining how AI supports strategic flexibility and risk management. Real-world applications demonstrate that human-AI collaboration is essential for improving AI-driven decision-making processes. Future research needs to examine longitudinal AI adoption patterns and identify applications across different industries.