Strategic Decision-Making in the AI Era: A Review of Benefits and Barriers for Organizational Planning

Abstract

The dynamic evolution and advancement of artificial intelligence (AI) have significantly affected the strategies pursued by various organizations to evaluate the alternatives and uncertainties. Though there is an increased potential for more informed decisions with the implementation of AI technology in the future, there is increased uncertainty and hindrances to the proper implementation of the technology by organizations. In this regard, the review seeks to critically synthesize the already conducted research between the years 2015 and 2025 to evaluate the associated benefits with the implementation of the recommended technology while highlighting the related impediments associated with the practice. Key concepts associated with the technology pursued in the future include the associated value with AI technology; an increase in predictive analytics; enhanced strategic agility; and the associated abstraction with the technology pursued in the future. This review makes a contribution to the management literature by synthesizing scattered pieces of research and elucidating the circumstances in which AI can generate a strategic advantage for organizations. The findings of the review underscore the point that the strategic impact of AI is substantial, but it largely depends on the organizational state of preparedness.