Impact of Artificial Intelligence on Strategic Decision-Making and Organisational Performance

Artificial Intelligence (AI) has become an important technological development in modern business management. Organisations increasingly use AI-based systems to analyse large volumes of data, identify business opportunities, predict market trends, manage resources, and support strategic decisions. The integration of AI into organisational processes has changed the way managers collect information, evaluate alternatives, and respond to competitive challenges. This article examines the impact of Artificial Intelligence on strategic decision-making and organisational performance through a narrative review of relevant academic literature. It focuses on the contribution of AI to decision-making accuracy, operational efficiency, innovation, productivity, resource management, and competitive advantage. The review also discusses important challenges, including data privacy, algorithmic bias, technological limitations, employee resistance, and the need for human supervision. Existing research indicates that AI can strengthen organisational performance when supported by appropriate technological infrastructure, skilled employees, effective leadership, and responsible governance. However, AI adoption alone does not guarantee organisational success. Its effectiveness depends on how organisations integrate intelligent technologies with human knowledge and managerial capabilities. The article concludes that a balanced human–AI approach can contribute to better strategic decisions and sustainable organisational development.