The Impact of Artificial Intelligence Adoption, Data Analytics Capability, and Digital Leadership on Strategic Decision Making and Organizational Performance

Abstract

The rapid advancement of artificial intelligence (AI), data analytics, and digital transformation has significantly reshaped organizational operations, strategic planning, and managerial decision-making processes across industries. Modern organizations increasingly rely on intelligent technologies and data-driven systems to enhance operational efficiency, improve competitive advantage, and strengthen organizational performance in highly dynamic business environments. The present study examined the impact of artificial intelligence adoption, data analytics capability, and digital leadership on strategic decision-making and organizational performance among business organizations operating in the digital economy. A quantitative correlational research design was employed to investigate the relationship between the independent variables and dependent variables. Data were collected from 300 managers, executives, and employees working in public and private sector organizations through structured self-administered questionnaires using a convenient sampling technique. The collected data were analyzed using descriptive statistics, Pearson correlation analysis, and regression analysis through SPSS. The findings revealed that artificial intelligence adoption had a significant positive relationship with strategic decision-making and organizational performance. Similarly, data analytics capability significantly enhanced managerial effectiveness, operational efficiency, and business performance. The results further indicated that digital leadership positively influenced innovation, employee adaptability, strategic planning, and organizational competitiveness. Organizations with stronger AI integration, advanced analytics systems, and effective digital leadership demonstrated higher levels of productivity, decision accuracy, innovation, and sustainable growth. The study highlights the importance of technological readiness, digital transformation strategies, leadership competencies, and data-driven culture in improving organizational performance in modern business environments.