The Role of Artificial Intelligence in Supporting Managerial Decision-Making

Artificial Intelligence (AI) has emerged as a transformative force in organisational decision-making, fundamentally reshaping how managers process information, evaluate alternatives, and exercise judgment. While early discussions surrounding AI emphasised automation and potential job displacement, contemporary perspectives increasingly highlight its augmentative role in enhancing managerial capabilities. This study presents a comprehensive review of existing literature to examine how AI supports managerial decision-making across diverse organisational contexts. The findings suggest that AI enhances decision quality by improving analytical capabilities, enabling real-time data processing, and supporting complex judgments under uncertainty. However, the effectiveness of AI-assisted decision-making is contingent upon several factors, including managerial trust, perceptions of fairness, transparency, and organisational culture. Challenges such as algorithmic opacity, accountability concerns, and over-reliance on automated systems continue to influence adoption and effectiveness. By synthesising prior research, this paper contributes to a nuanced understanding of human–AI collaboration in managerial contexts and offers theoretical and practical implications for organisations seeking to leverage AI responsibly and effectively.