Strategic Decision-Making in the Age of AI: A Conceptual Framework for Managers

Orlando Rivero ()
Additional contact information
Orlando Rivero: Southwest Florida Healthcare Consultants LLC, USA

European Journal of Studies in Management and Business, 2025, vol. 35, 1-17

Abstract: As Artificial Intelligence (AI) continues to embed itself into the core of business operations, leaders face a growing challenge: making room for machine intelligence without sidelining human judgment, ethics, or long-term strategic thinking. This paper presents a five-pillar framework to help managers integrate AI responsibly and effectively into decision-making processes. The model draws on strategic management theory and is informed by real-world examples from various sectors, including healthcare, finance, logistics, and education. The framework highlights five key areas: data literacy, ethical governance, AI-enhanced intuition, transparency and explainability, and risk assessment. These pillars are not standalone concepts—they work together, offering a practical roadmap for moving beyond scattered or experimental AI efforts toward intentional, organization-wide transformation. Rather than treating AI as a replacement for human insight, the framework emphasizes complementarity, drawing on theories such as bounded rationality, sociotechnical systems, and the Technology Acceptance Model. Through applied examples, the paper demonstrates how companies are addressing real challenges, such as algorithmic bias and decision risk, while navigating the promise and pitfalls of AI. Ultimately, this framework contributes to ongoing conversations about digital transformation by offering a grounded, flexible approach that balances performance goals with ethical responsibility. It also outlines the capabilities leaders will need to ensure AI-enabled strategies are scalable, context-aware, and adaptable to future change

Keywords: Artificial Intelligence (AI); Strategic Decision-Making; Data Literacy; Ethical Governance; Human–AI Collaboration; Transparency and Explainability (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://api.eurokd.com/Uploads/Article/1749/mbrq.2025.35.01.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bco:mbrqaa::v:35:y:2025:p:1-17

DOI: 10.32038/mbrq.2025.35.01

Access Statistics for this article

European Journal of Studies in Management and Business is currently edited by Fernando Jose Garrigos Simon

More articles in European Journal of Studies in Management and Business from EUROKD
Bibliographic data for series maintained by Sara Gunen ().