Algorithmic Trust and Managerial Effectiveness: The Role of AI-Driven Decision Culture in Digital Organizations and Educational Institutions

The growing integration of Artificial Intelligence (AI) into organizational processes is transforming managerial decision-making across business and educational institutions. Despite the technological sophistication of AI systems, their effectiveness largely depends on the level of trust managers place in algorithmic recommendations. This study examines the role of trust in AI as a critical driver of managerial effectiveness and the development of a data-driven decision culture in digital organizations, with special emphasis on educational management. Using a quantitative research design, primary data were collected from managers and educational administrators through a structured survey. Statistical techniques including mean analysis, correlation, and regression were employed to analyze the relationships among trust in AI, managerial effectiveness, and data-driven decision culture. The findings reveal that higher levels of AI trust significantly enhance decision quality, speed, and strategic performance. Moreover, organizations and educational institutions that foster confidence in AI systems demonstrate stronger adoption of data-driven practices, leading to improved operational and academic outcomes. The study contributes to management and education literature by highlighting the importance of human–AI collaboration and behavioral readiness in digital transformation initiatives. It further suggests that building transparency, reliability, and AI literacy among managers is essential for maximizing the benefits of intelligent decision-support systems in the evolving digital ecosystem.