International Peer-Reviewed JournalOpen AccessISSN 2456-8880
irejournals@gmail.com+91-7433024337

Home / Current Issue / Paper 1717326

1717326 Vol 9 · Issue 11 Download Paper

Artificial Intelligence and Managerial Decision-Making: Advances, Challenges, and Future Perspectives

Anjita Khandelwal

Subject area: Management and Commerce  ·  Area of research: Finance, Entrepreneurship, General Management

DOI: https://doi.org/10.64388/IREV9I11-1717326

Abstract

Artificial Intelligence (AI) has emerged as a transformative force in modern science and technology, significantly reshaping managerial decision-making processes across industries. AI technologies such as machine learning, natural language processing, and predictive analytics enable organizations to process large volumes of data, enhance decision accuracy, and improve operational efficiency. This chapter examines the role of AI in managerial decision-making, focusing on its applications, benefits, and challenges. It also highlights emerging concerns such as data privacy, algorithmic bias, and workforce adaptation. Furthermore, the chapter explores future perspectives, emphasizing human-AI collaboration and explainable AI systems. By integrating recent scholarly contributions (2023–2026), this study provides a comprehensive understanding of how AI is transforming decision-making paradigms in contemporary organizations.

Keywords

Artificial Intelligence; Managerial Decision Making; Decision Support System, Business Intelligence

References

[1] Agrawal, A., Gans, J., & Goldfarb, A. (2023). Prediction machines: The simple economics of artificial intelligence (Updated ed.). Harvard Business Review Press.

[2] Alshater, M. M., Hassan, M. K., Khan, A., & Saba, I. (2024). Influences of artificial intelligence on business decision-making: Evidence from emerging markets. Journal of Business Research, 172, 114–126. https://doi.org/10.1016/j.jbusres.2023.114126

[3] Bhardwaj, A., & Joshi, R. (2024). AI-driven decision support systems in business organizations: Trends and future directions. Information Systems Frontiers. https://doi.org/10.1007/s10796-024-10456-7

[4] Brynjolfsson, E., & McAfee, A. (2017). The business of artificial intelligence. Harvard Business Review.

[5] Choudhury, P. (2024). Machine learning and financial decision-making: Implications for firms. Journal of Financial Data Science, 6(2), 45–60.

[6] Davenport, T. H., & Ronanki, R. (2018). Artificial intelligence for the real world. Harvard Business Review, 96(1), 108–116.

[7] Dwivedi, Y. K., Hughes, L., Baabdullah, A. M., et al. (2023). Artificial intelligence (AI): Multidisciplinary perspectives on emerging challenges, opportunities, and agenda for research. International Journal of Information Management, 70, 102643. https://doi.org/10.1016/j.ijinfomgt.2023.102643

[8] Floridi, L., & Cowls, J. (2019). A unified framework of five principles for AI in society. Harvard Data Science Review, 1(1).

[9] Gupta, S., & Singh, A. (2023). Human–AI collaboration in decision-making: A managerial perspective. Decision Support Systems, 169, 113926. https://doi.org/10.1016/j.dss.2023.113926

[10] John, G. (2025). The role of artificial intelligence in decision-making: A multidisciplinary analysis. ResearchGate.

[11] Joshi, S. (2025). Strategic decision-making in the age of artificial intelligence: Opportunities and challenges. California Management Review. https://doi.org/10.1177/00081256251345678

[12] Joshi, S. (2025). The role of artificial intelligence in strategic decision-making: A comprehensive review. SSRN.

[13] Kumar, B. R., et al. (2024). The role of artificial intelligence in decision-making processes. African Journal of Biological Sciences, 6(6).

[14] Kumar, N., & Shrivastava, A. (2025). The artificial intelligence revolution: Evolving business decision-making in the digital age. Journal of Information Technology. https://doi.org/10.1177/02663821251364069

[15] Rane, N., Choudhary, S., & Rane, J. (2023). Artificial intelligence in supply chain management: A systematic literature review. Sustainability, 15(3), 2021. https://doi.org/10.3390/su15032021

[16] Sharma, J., et al. (2025). Artificial intelligence: A comprehensive review of its potential and perils. Advancements in Intelligent Systems.

[17] Sharma, J., Singh, R., & Verma, P. (2025). Artificial intelligence adoption and organizational performance: A comprehensive review. Technological Forecasting and Social Change, 198, 122–135. https://doi.org/10.1016/j.techfore.2024.122135

[18] Shrestha, Y. R., Ben-Menahem, S. M., & von Krogh, G. (2019). Organizational decision-making structures in the age of artificial intelligence. California Management Review, 61(4), 66–83. https://doi.org/10.1177/0008125619862257

[19] Sultana, R. (2025). Artificial intelligence for decision making in the era of big data evolution. SSRN.

[20] Sultana, R. (2025). Artificial intelligence for decision-making in the era of big data evolution. Journal of Big Data, 12(1), 55–72. https://doi.org/10.1186/s40537-025-00876-5

[21] Vijayakumar, S., Yang, W. Y., & DeFranza, D. (2026). Lay belief about AI and its decision-making. Frontiers in Computer Science.

[22] Zuboff, S. (2019). The age of surveillance capitalism. PublicAffairs.

How to cite this paper

Anjita Khandelwal "Artificial Intelligence and Managerial Decision-Making: Advances, Challenges, and Future Perspectives" Iconic Research And Engineering Journals Volume 9 Issue 11 2026 Page 693-697 https://doi.org/10.64388/IREV9I11-1717326
Anjita Khandelwal "Artificial Intelligence and Managerial Decision-Making: Advances, Challenges, and Future Perspectives" Iconic Research And Engineering Journals, vol. 9, no. 11, May. 2026, doi: https://doi.org/10.64388/IREV9I11-1717326
Anjita Khandelwal (2026). Artificial Intelligence and Managerial Decision-Making: Advances, Challenges, and Future Perspectives. Iconic Research And Engineering Journals, 9(11). doi: https://doi.org/10.64388/IREV9I11-1717326
Anjita Khandelwal "Artificial Intelligence and Managerial Decision-Making: Advances, Challenges, and Future Perspectives" Iconic Research And Engineering Journals, vol. 9, no. 11, May. 2026. Crossref, https://doi.org/10.64388/IREV9I11-1717326
@article{1717326,
      author = {Anjita Khandelwal},
      title = {Artificial Intelligence and Managerial Decision-Making: Advances, Challenges, and Future Perspectives},
      journal = {Iconic Research And Engineering Journals},
      year = {2026},
      volume = {9},
      number = {11},
      pages = {693-697},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1717326.pdf},
      abstract = {Artificial Intelligence (AI) has emerged as a transformative force in modern science and technology, significantly reshaping managerial decision-making processes across industries. AI technologies such as machine learning, natural language processing, and predictive analytics enable organizations to process large volumes of data, enhance decision accuracy, and improve operational efficiency. This chapter examines the role of AI in managerial decision-making, focusing on its applications, benefits, and challenges. It also highlights emerging concerns such as data privacy, algorithmic bias, and workforce adaptation. Furthermore, the chapter explores future perspectives, emphasizing human-AI collaboration and explainable AI systems. By integrating recent scholarly contributions (2023–2026), this study provides a comprehensive understanding of how AI is transforming decision-making paradigms in contemporary organizations.},
      keywords = {Artificial Intelligence; Managerial Decision Making; Decision Support System, Business Intelligence},
      month = {May},
      doi = {https://doi.org/10.64388/IREV9I11-1717326}
  }