The Role of Artificial Intelligence in Enhancing the Effectiveness of Business Management and Decision Making

Abstract

The development of Artificial Intelligence (AI) has transformed business management practices through automation, data processing, predictive analysis, and decision-making support. AI's ability to process data quickly provides opportunities for organizations to improve the effectiveness of resource management and respond to changes in the business environment. This study aims to analyze the role of AI in improving management effectiveness and supporting business decision-making and identifying challenges in its implementation. The research uses a qualitative approach with the library research method through the review and synthesis of various relevant scientific literature. The data is analyzed descriptive-analytically by identifying patterns of findings regarding the use of AI in managerial activities and decision-making. The results of the study show that AI contributes to increasing the efficiency, productivity, quality of information analysis, and speed of managerial processes. AI also supports decision-making through prediction, pattern identification, risk analysis, and the provision of data-driven recommendations. However, the effectiveness of its implementation is influenced by data quality, human resource competence, information security, output accuracy, and organizational governance readiness. Thus, AI needs to be strategically integrated as a supporting technology that strengthens managerial capacity and data-driven business decisions.