Impact of artificial intelligence on managerial decision-making in organizations

In the contemporary companies, Artificial Intelligence (AI) has completely revolutionized the organizational process and managerial decision-making. As the usage of big data, new analytics, and machine learning algorithms becomes more available, organizations are progressively incorporating AI systems in strategic, tactical, and operational decision-making. The decision support systems supported by AI help managers to work with a great amount of both structured and unstructured data, recognize trends, predict, and streamline the organizational performance. The given review paper evaluates the currently available literature related to the effects of AI on managerial decision-making within organizations. This paper explores how AI technologies including machine learning, deep learning, natural language processing, and predictive analytics aid in enhancing the accuracy of decisions, their efficiency, and their strategic plans. This paper is a literature review conducted systematically that summarizes the research of several leading databases such as Scopus, Web of Science, IEEE Xplore, and Science Direct. The findings show that AI can also improve the quality of decisions, decrease human bias, improve operational efficiency, as well as provide real-time information-driven decisions. Nevertheless, the ethical issues, transparency of the algorithm, data privacy and transformation of managerial skill are the other challenges accompanying AI introduction. The paper establishes that AI is not a substitute that can be used to substitute human managers but a decision partner. The future directions of research are the development of explainable AI systems, the enhancement of human-AI collaboration frameworks, and solving the ethical issues introduced by the implementation of AI in organizational decision-making.