Abstract
Artificial Intelligence (AI) has emerged as a transformative technology that is significantly reshaping modern management and strategic decision-making processes across organizations. The rapid growth of big data, advances in computational power, and the development of sophisticated algorithms have accelerated the adoption of AI-driven tools across organizations. Technologies such as predictive analytics, machine learning, intelligent dashboards, and automated decision-support systems enable managers to process large volumes of data, identify patterns, forecast trends, and generate actionable insights. As a result, organizations are increasingly shifting from intuition-based managerial practices toward data-driven strategic management frameworks. This study adopts a systematic literature review approach to examines the role of Artificial Intelligence (AI) in strategic management with particular emphasis on its impact on decision-making effectiveness and organizational performance. The study synthesizes insights from existing academic literature to explore how AI applications are integrated into key managerial functions including strategic planning, marketing analytics, financial forecasting, operations management, human resource management, and risk assessment. The findings suggest that Artificial Intelligence (AI) enhances forecasting accuracy, improves resource optimization, supports real-time strategic monitoring, and enables managers to evaluate complex decision alternatives more effectively. However, the adoption of AI also presents several challenges, including data privacy concerns, algorithmic bias, ethical governance issues, high implementation costs, and skill gaps among managers. The review concludes that AI should be viewed as an augmentative technology rather than a replacement for human managers. A hybrid decision-making model combining machine intelligence with human judgment can significantly improve organizational performance and long-term strategic outcomes.
