Fountaine, McCarthy, & Saleh (2019) [13] elaborate on this,
describing the creation of an AI-powered organization as a journey that
demands vision, patience, and continuous refinement. The businesses that
successfully integrate AI are those that find the right balance between
all these elements, leading to significant benefits.
Empirical Studies on AI’s Impact on Strategic
Decision-making
Processes
Enhancing Employee Performance in IT:
Scenario: In software development companies, AI-driven tools are now
used for debugging code. These tools quickly identify bugs and suggest
fixes, making the developer’s job more efficient and less tedious.
Paper Reference: Bapna et al., 2013 [2]
Revolutionizing Decision-making in Retail:
Scenario: A fashion retailer that once depended on market surveys now
uses AI to analyze real-time social media data, sales metrics, and
global fashion trends. This helps them stock exactly what consumers
want, reducing costs from unsold inventory.
Paper Reference: Makridakis, 2017 [20]
Transforming Organizational Structures in Banking:
Scenario: Traditional banks, with their hierarchical structures, are
using AI for customer queries, transactions, and fraud detection.
Automation allows for a leaner, more agile organizational structure.
Paper Reference: Makridakis, 2017 [20]
Disrupting Business Models in Transportation:
Scenario: Taxi companies are challenged by AI-driven platforms like
Uber and Lyft, which optimize routes, predict demand, and use dynamic
pricing. This tech-savvy, customer-focused approach is tough for
traditional taxis to compete with.
Paper Reference: Makridakis, 2017 [20]
Optimizing Supply Chain in Manufacturing:
Scenario: A car manufacturer uses AI to monitor its supply chain in
real time. AI algorithms adjust production schedules, order substitute
parts, or re-route shipments when there are delays, leading to
smoother operations and cost savings.
Paper Reference: Makridakis, 2017 [20]
These empirical studies showcase AI’s significant impact across various
sectors, enhancing performance, revolutionizing decision-making,
transforming organizational structures, disrupting traditional business
models, and optimizing supply chains.
TABLE 4: AI’S TRANSFORMATIVE POTENTIAL ACROSS VARIED INUSTRIES