A Study on the Impact of Artificial Intelligence on Strategic Decision-Making in Indian Businesses

International Journal of Emerging Research in Science, Engineering, and Management
Vol. 2, SI1 (2026), pp. 176184
Proceedings of Selected Papers from the
National Conference on Emerging Trends in Commerce and Management
NCETCM-2K26
2026-03-30 to 2026-03-31
Vijayawada, Andhra Pradesh, India
Organized by Andhra Loyola College, Vijayawada, India
eISSN: 3107-9075

This work is licensed under a Creative Commons Attribution 4.0 International License .

A Study on the Impact of Artificial Intelligence on Strategic Decision-Making in Indian Businesses

P Subhakar, A N V Durga Anupama, E Suvarnanjali

Assistant Professor, Department of Commerce, P.B. Siddhartha College of Arts & Science, Vijayawada, A.P, India.

Abstract

Artificial Intelligence (AI) is rapidly transforming the landscape of business strategy by enabling data-driven insights, predictive analytics, and automation of complex decision processes. In the context of Indian businesses, where diverse market conditions, regulatory frameworks, and digital adoption levels coexist, AI presents both opportunities and challenges for strategic decision-making. This study examines how AI technologies influence managerial decisions across sectors in India, focusing on their role in enhancing accuracy, speed, and competitive advantage. It also explores the organisational readiness, ethical considerations, and infrastructural constraints that affect AI adoption. Drawing on recent industry trends and secondary data, the paper highlights the extent to which AI is reshaping strategic thinking in Indian enterprises. The findings suggest that while AI significantly improves decision quality and forecasting capabilities, its effectiveness depends on human-AI collaboration, data quality, and organisational adaptability. The study contributes to the growing discourse on digital transformation by providing insights relevant to policymakers, business leaders, and researchers in emerging economies.

Keywords: Artificial Intelligence, Strategic Decision-Making, Indian Businesses, Data Analytics, Business Strategy.

📄 Download Full Text PDF

DOI: 10.66710/ijersem.v2si1.23

Open Access • Peer Reviewed Article

References

  1. Y. R. Shrestha, S. M. Ben-Menahem, and G. von Krogh, “Organizational Decision-Making Structures in the Age of AI,” California Management Review, vol. 61, no. 4, pp. 66–83, Aug. 2019. https://doi.org/10.1177/0008125619862257
  2. A. C. Das, “The Impact of Artificial Intelligence on Strategic Decision-Making in Business: A Review with Focus on India,” International Journal on Science and Technology, vol. 16, no. 3, Aug. 2025. https://doi.org/10.71097/IJSAT.v16.i3.7579
  3. N. Kumar and A. Shrivastava, “The Artificial Intelligence (AI) Revolution: Evolving Business Decision-Making in the Digital Age,” Journal of Information Technology, vol. 42, no. 3, Jul. 2025. https://doi.org/10.1177/02663821251364069
  4. M. R. M. Amin and V. M. Sivakumaran, “Harnessing Artificial Intelligence (AI) for Innovation in Family Businesses: A Conceptual Model Based on Dynamic Capabilities Theory,” Strategic Business Research, vol. 2, no. 1, p. 100135, Mar. 2026. https://doi.org/10.1016/j.sbr.2026.100135
  5. T. Stoeber, J. Hammerschmidt, A. Lundervold, E. Kromidha, D. K. Kanbach, and S. Kraus, “AI Strategy Under Institutional Pressure: Strategic Conformity and Decision-Making in Large Language Models,” Journal of Business Research, vol. 212, p. 116227, Apr. 2026. https://doi.org/10.1016/j.jbusres.2026.116227
  6. M. Delera, N. Mathew, and T. Treibich, “Good for Business, Not So Much for the Environment? Entry into Importing and the Energy Intensity of Indian Plants,” Mar. 2025. https://doi.org/10.1016/j.worlddev.2026.107412
  7. S. I. Bashir, S. Vij, and S. Durst, “The Role of Strategic Entrepreneurship in Enhancing the Business Performance of Indian Family Businesses,” Journal of Entrepreneurship in Emerging Economies, vol. 17, no. 6, pp. 1586–1610, Aug. 2025. https://doi.org/10.1108/JEEE-01-2025-0004
  8. H. Sonar, N. Ghag, and I. Sharma, “Bridging Theory and Practice in AI-Driven Supply Chains: Prioritizing LLM Adoption Challenges and SCOR-Based Applications,” International Journal of Production Economics, vol. 296, p. 110008, Mar. 2026. https://doi.org/10.1016/j.ijpe.2026.110008
  9. S. Watts and T. Munir, “Bridging the Gap: Exploring Innovation Enablers, Challenges and AI Adoption for Enhanced Workforce Productivity,” International Journal of Productivity and Performance Management, vol. 75, no. 3, pp. 1030–1046, Oct. 2025. https://doi.org/10.1108/IJPPM-01-2025-0001
  10. A.-A. S. Al-Naemi and D. Botella-Carrubi, “The Challenges of Applying Predictive Analytics and Knowledge for Decision-Making in Talent Management,” Journal of Innovation & Knowledge, vol. 17, p. 101044, Apr. 2026. https://doi.org/10.1016/j.jik.2026.101044
  11. Busi Reddy Jaya Raj Reddy and K. V. S. N. Jawahar Babu, “Financial Performance Analysis of Selected Travel Services: A Comparative Study of BLS International Services Ltd and TBO Tek Ltd,” International Journal of Emerging Research in Science Engineering and Management, vol. 2, no. si1, pp. 164–175, May 2026. https://doi.org/10.66710/ijersem.v2si1.22
  12. M. Ikram, W. Mehmood, S. M. U. Saleem, and S. B. M. Hanefar, “Exploring the Nexus of Governance and AI Ethics: Using Systematic Literature Review for Future Direction,” Data and Information Management, vol. 10, no. 3, p. 100122, Mar. 2026. https://doi.org/10.1016/j.dim.2026.100122
  13. M. M. Shanmugapriya, “A Study on Business Use of Digital Platforms with Special Reference to Chennai City,” International Journal of Emerging Research in Engineering, Science, and Management, vol. 2, no. 3, pp. 10–15, 2023. https://doi.org/10.58482/ijeresm.v2i3.3
  14. A. M. S., P. Sundharesalingam, M. R. Rani, R. Prabha, and B. R. Kumar, “Collaborative Sustainability for Building Resilient Business Models Through Strategic Partnerships for Startup Growth,” in IGI Global eBooks, 2025, pp. 53–84. https://doi.org/10.4018/979-8-3693-4066-0.ch003
  15. Thakrar Pooja Tulshibhai and N. D. Zala, “An Analysis of the Variables Influencing Consumers’ Purchasing Decisions for Organic Food Items in Rajkot,” International Journal of Emerging Research in Engineering, Science, and Management, vol. 4, no. 1, pp. 31–36, 2025. https://doi.org/10.58482/ijeresm.v4i1.4