Improving Market Competitiveness using the Use of Artificial Intelligence in Strategic Business Decisions

Abstract

Background: The global business landscape is continuing to change quickly, and strategic decision-making is taking a turn toward the use of artificial intelligence (AI) as an agent of change. In effort to understand the barriers companies are facing in this area, and the strategic approach companies are seeking, a working paper examines the state of deployment of AI technologies in business functions and their role in contributing to competitiveness in the market. AI enables predictive analytics, customer personalization, supply chain optimization and operational efficiency. Methods: Based on global case studies, empirical data, and contemporary literature, we explore the measurable value that AI brings in terms of a 25–30% improvement in decision-making speed and accuracy, a 10–20% increase in customer engagement, and a 15% reduction in operational costs. The most important AI technologies explored in the report include machine learning, natural language processing, robotic process automation and decision intelligence systems. The research also addresses ethical issues and governance structures exposed by the responsible adoption and organization of AI. Results: The study found that organizations adopting AI, systemically and strategically, have a competitive advantage over other organizations as AI was increasingly used to influence real-time decision making through data. Conclusion: The study concluded with the finding that while AI adoption can benefit providers, to truly consider the positives of AI adoption a few factors must be addressed in terms of strategic fit, data quality, and organization readiness.