The Effect of AI on Management Decision-Making

The technology is becoming more and more relevant for enabling better and quicker decisions as a result of developing artificial intelligence (AI) capabilities. The recurrent, tactical and organised scenarios are the ones where AI-enabled judgements are most frequently used. AI has specific responsibilities in many types of decisions. The main impact of AI is to supplement rather than replace human intellect, but it can also change managerial decision-making processes by enabling managers to make earlier, more simulated and complimentary judgements. Managers must also be aware of how AI-enabled decision tools work and when the models they rely on to make decisions need to be changed since they no longer accurately reflect their environment. With these new capacities and duties in mind, organisations should start redesigning important decision-making procedures.