The Role of Artificial Intelligence in Enhancing Strategic Decision-Making

Artificial Intelligence (AI) has emerged as a transformative force in organizational strategy by significantly enhancing the quality, speed, and scope of strategic decision-making. This paper explores the role of AI in supporting and augmenting strategic decisions across key stages, including environmental scanning, sensemaking, option generation, evaluation, implementation, and monitoring. By leveraging advanced techniques such as machine learning, natural language processing, optimization, and simulation, AI enables organizations to process vast volumes of structured and unstructured data, uncover hidden patterns, and generate data-driven strategic insights. The study highlights how AI improves forecasting accuracy, reduces cognitive biases, and facilitates adaptive and prescriptive decision-making in dynamic and uncertain environments. At the same time, it critically examines challenges related to data quality, model transparency, ethical concerns, governance, and overreliance on automated systems. Drawing on conceptual frameworks and practical illustrations, the paper proposes an AI-enabled strategic decision cycle that integrates human judgment with intelligent systems. The findings suggest that while AI does not replace strategic leadership, its effective integration can substantially strengthen organizational competitiveness and resilience when supported by robust governance and ethical oversight.