THE ROLE OF ARTIFICIAL INTELLIGENCE IN SHAPING STRATEGIC DECISION-MAKING WITHIN MULTINATIONAL COMPANIES

Abstract

Artificial Intelligence (AI) has emerged as a transformative force in modern business, significantly influencing strategic decision-making within multinational companies (MNCs). As MNCs operate in complex and dynamic global markets, they require tools that can process vast volumes of data, identify patterns, forecast trends and support evidence-based decisions. This research investigates the role of AI in shaping strategic decision-making processes, focusing on its applications, benefits, challenges and organizational implications. A mixed-method approach was adopted, combining qualitative interviews with executives and AI specialists and quantitative surveys across multiple MNCs to capture both subjective insights and measurable outcomes.

The study reveals that AI is widely adopted in operationally intensive functions such as supply chain management, marketing analytics, financial planning and product development. Key AI applications include predictive analytics, machine learning models, natural language processing, robotic process automation and decision support systems. Findings indicate that AI enhances decision-making by improving accuracy, forecasting capabilities, operational efficiency and risk assessment. Organizations that effectively integrate AI gain a competitive advantage, innovate more rapidly and foster a data-driven culture that encourages evidence-based decision-making.

However, the research also identifies significant challenges associated with AI adoption. These include lack of skilled personnel, data quality and integration issues, resistance to change, high implementation costs and ethical concerns such as algorithmic bias and regulatory compliance. The successful deployment of AI in strategic decision-making requires investment in human capital, robust data governance, ethical oversight and organizational readiness to embrace technology-driven change.

Overall, the study highlights that AI is not merely a technological tool but a strategic enabler capable of reshaping decision-making processes in MNCs. By combining technological innovation with managerial expertise and ethical governance, organizations can leverage AI to enhance strategic planning, operational effectiveness and sustainable global competitiveness. These findings provide practical guidance for executives, policymakers and researchers seeking to harness AI’s potential in complex multinational environments