FROM ALGORITHMS TO ACTION: THE IMPACT OF AI ON STRATEGIC BUSINESS DECISIONS

Abstract

The integration of artificial intelligence into strategic business decision-making represents a paradigm shift in how organizations formulate, evaluate, and execute competitive strategies. This paper examines the transformative impact of AI technologies on strategic decision processes, exploring how algorithmic systems are reshaping the cognitive and operational dimensions of corporate governance. Drawing on a synthesis of management theory, information systems research, and organizational behavior studies, we analyze the mechanisms through which AI enhances decision quality—including predictive analytics, pattern recognition, and simulation capabilities—while also identifying significant risks such as algorithmic bias, loss of human judgment, and strategic homogenization. The paper proposes a framework for "augmented strategic governance" that preserves human oversight while leveraging AI's computational advantages. Key findings indicate that organizations achieving superior strategic outcomes adopt hybrid decision models where AI serves as an intelligence amplifier rather than a replacement for human strategic reasoning. The paper concludes with actionable recommendations for executives seeking to navigate the transition from intuition-based to algorithm-informed strategic management, emphasizing the need for new organizational capabilities, ethical guidelines, and governance structures appropriate for the age of algorithmic strategy.