The Impact of Artificial Intelligence Adoption on Managerial Decision-Making Effectiveness

Abstract

The fast adoption of Artificial Intelligence (AI) technologies by organizational processes has changed the way decisions are made and implemented by managers. This qualitative research paper takes a glimpse into the daily life of managers in various sectors to know how the aspect of AI implementation impacts the effectiveness of decision-making. Based on semi-structured interviews with 25 middle and senior-level managers of multinational organizations, the study explores the views of AI on the accuracy of judgment, decision-making speed, and the ability to generate strategic thoughts. Thematic analysis indicates access to real-time data and prediction insights, empowered evidence-based decision making, and lightened cognitive load when solving complex problems. Nonetheless, the research also indicates that over-reliance on automated suggestions and growing ethical issues around information disclosure and the requirement to inject human interpretative reasoning to contextualize AI outputs are some of the challenges. Respondents observe that critical thinking, technology awareness, and ethical reasoning are managerial traits that determine the highest use of AI to achieve the desired results of a decision. The work would add to the literature on management by de-juridicising the complex interaction between human agency and AI systems by providing pragmatic guidance on how organizations can maximize the use of AI in management practices. Conclusions on the leadership development, technology training, and organizational culture include implications, which give a guide in future study on how the AI capabilities can be aligned to human strategic oversight.