Adoption of Artificial Intelligence/Data Analytics in Business Decision-Making: Effects on Efficiency and Competitive Advantage

Abstract

The blistering development of the Artificial Intelligence (AI) and Data Analytics (DA) has reshaped the contemporary way of decision-making, optimization of processes, and maintaining a competitive advantage among modern organizations. This research paper explores how AI and analytics-based solutions can be implemented in business decision-making processes and highlights the impact of these solutions on operational effectiveness, strategic flexibility, and sustainability. Based on the available empirical evidence, the technological adoption models, and case studies in the industry, this study sheds light on the impact of predictive analytics, machine learning, and automated decision support systems on the performance of organizations. It also discusses obstacles including lack of skills, data quality problems, and technological change resistance which may hamper successful adoption. The paper assumes a conceptual framework that connects the AI/DA adoption and the increases in efficiency and competitive advantage and incorporates the Technology-Organization-Environment model and Resource-Based View. Results can be used to enhance further insights into the relationship between the capability of data and the responsiveness of firms in new and developed economies.