ARTIFICIAL INTELLIGENCE AND STRATEGIC DECISION-MAKING: INVESTIGATING HOW AI TOOLS SHAPE STRATEGIC PLANNING AND RESOURCE ALLOCATION

Abstract

This study explored the influence of artificial intelligence (AI) on strategic decision-making, with a specific focus on how AI tools shape strategic planning and resource allocation in contemporary
organizations. As businesses navigate increasingly complex and data-driven environments, the
integration of AI has become a critical factor in enhancing strategic responsiveness and operational efficiency. Adopting a qualitative research methodology, the study gathered insights from 17 senior executives, data scientists, and strategic managers across diverse industries through semistructured interviews. Thematic analysis revealed that AI serves as a strategic enabler, facilitating advanced market forecasting, competitor analysis, and scenario planning. Participants also emphasized that AI tools significantly improve resource allocation by enabling real-time investmentdecisions and optimizing workforce deployment. However, several challenges were identified,
including data privacy concerns, algorithmic bias, transparency issues, and organizational resistance.
A recurring theme was the importance of human-AI collaboration, where AI acts as a decisionsupport tool rather than a substitute for human judgment. These findings aligned with existing scholarship, which advocates for hybrid decision-making models that balance technological precision with human insight. The study concluded that while AI can enhance the accuracy and agility of strategic decisions, its effectiveness depended on ethical governance, cross-functional integration, and organizational readiness. Practical recommendations include strengthening AI governance frameworks, promoting data literacy, and fostering interdisciplinary collaboration. This noresearch contributed to the growing discourse on responsible AI adoption in strategic management
and offers guidance for organizations seeking to leverage AI while maintaining ethical and strategic
alignment.