The Impact of Strategic Use of Generative Artificial Intelligence on Firm Performance

This study investigates the impact of the strategic use of generative artificial intelligence on firm performance from a strategic management perspective. As organisations increasingly operate in dynamic and uncertain environments, generative AI has emerged as a critical tool with the potential to support strategic decision-making and enhance organisational outcomes. Drawing on strategic management and digital transformation literature, this study argues that generative AI creates value not merely through technological adoption, but through its purposeful and strategic integration into organisational processes. Using a quantitative research design, data were collected from managerial-level respondents across firms operating in management- and economics-related sectors. The proposed research model was tested using partial least squares structural equation modelling (PLS-SEM). The empirical results indicate that the strategic use of generative artificial intelligence has a positive and statistically significant effect on firm performance. These findings suggest that organisations that align generative AI initiatives with their strategic objectives are better positioned to improve decision quality, enhance responsiveness to environmental changes, and achieve superior performance outcomes. The study contributes to the strategic management literature by extending existing research on artificial intelligence beyond operational efficiency and highlighting the strategic value of generative AI. It also provides practical insights for managers seeking to leverage advanced digital technologies as strategic resources in order to achieve sustainable performance advantages.