DefinePK

Abstract

This paper examines the impact of artificial intelligence (AI) on decision making in the contemporary organizations with a focus on the mediating variable of organizational agility and the moderating variable of trust towards artificial intelligence. Based on the quantitative research techniques, the data were gathered on 320 professionals working in various organizational fields. The hypothesized relationships between the variables were analyzed using structural equation modeling (SEM). The results indicate that the overall impact of AI on the quality of decisions is strong and positive, which improves the speed, accuracy, and evidence-based thinking. Moreover, the organizational agility mediates this relationship because it helps firms to quickly change strategies and adapt well to the uncertainty in the environment. Religiousness to AI enhances the connection between AI implementation and decision-making, which may indicate that the level of employee trust in technological infrastructure is the key to the full utilization of AI. All of the five hypotheses are supported by the regression findings, which prove that AI plays the leading role in transforming the organizational strategies and outcomes. The research has an impact on theory by enhancing the current body of knowledge about digital transformation and decision-making structures and providing managers with key issues that can enable them to use AI in a responsible manner. It also notes that there is a necessity to balance the use of technology with cultural preparedness and trust of employees. Among the limitations are that it is based on self-reported data, is cross-sectional, and thus restricts causal inferences. Future studies might follow longitudinal designs and identify other contextual factors including digital literacy and climate of innovation. In general, the present study underscores the possibility of AI to transform the way decisions are made and makes agility and trust imperative in capitalizing on it.