“The Role of Artificial Intelligence in Transforming Modern Business Strategiesâ€

Mohd. Ismail
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Mohd. Ismail: Osmania University, Hyderabad

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 6, 4782-4798

Abstract: Artificial intelligence (AI) is rapidly transforming the corporate environment by improving productivity, decision-making, and consumer engagement. This study examines the strategic significance of AI in critical business functions, including marketing, supply chain management, and customer service. This research provides a complete overview of the practical applications of AI and its resultant outcomes through the analysis of industry reports, case studies, and primary survey data. The findings demonstrate that AI technologies substantially enhance operational performance. For example, automation technologies reduce mundane operations and costs, while AI-driven chatbots enhance the quality and timeliness of customer care. Major organizations, such as Amazon and Netflix, exemplify the effective implementation of artificial intelligence to enhance operational efficiency and provide personalized experiences. Nevertheless, these advantages did not overcome other obstacles to the widespread acceptance of artificial intelligence. Significant implementation expenses, insufficient technological expertise, especially among small and medium firms (SMEs), data privacy concerns, and the potential for algorithmic bias are among the challenges. Informed by qualitative and quantitative data, together with insights from a survey of 50 companies, the report presents a methodology for AI adoption with a structured approach to tackle these challenges. Significant proposals encompass financing staff training, implementing stringent data security regulations, and formulating ethical guidelines for AI utilization. The project corresponds with Sustainable Development Goal (SDG) 9 by fostering innovation and enhancing resilient infrastructure. This research offers significant, implementable strategies for organizations aiming to utilize AI responsibly and effectively while reconciling innovation with accountability and ethical considerations.

Date: 2025
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