How Artificial Intelligence Affects the Decision-Making Process in Business: AI-Driven Decision Support Systems

Abstract Businesses require data-driven insights to gain a competitive advantage because of digital transformation. Companies must manage vast amounts of data to make timely and accurate decisions. AI (Artificial Intelligence) technologies are integrated with decision support systems (DSSs) to enhance the speed and effectiveness of decision-making processes. This integration is referred to as AI-driven DSS. Top management must make strategic decisions to shape their organizations’ futures, and AI-driven DSSs support this need. An AI-driven DSS includes technologies, such as data mining, predictive analytics, and machine learning. Organizations should invest in DSSs integrated with AI to improve decision quality. This chapter is designed to provide an understanding of how AI-integrated DSSs influence the decision-making processes. Its objectives are to (a) detail AI-driven DSSs and differentiate them from traditional decision support models, (b) explain core AI technologies used in DSSs and how they enhance decision-making, (c) evaluate real-life applications of AI-powered DSSs across various industries, and (d) offer perspectives on the future of AI in decision support. This chapter is intended for readers seeking to understand how AI-driven DSSs have transformed business practices. The expanding literature on AI in business will benefit from this chapter’s inclusion of practical examples, future insights, and guidance on leveraging AI for competitive advantage.