Strategic Management in the Era of Artificial Intelligence

Abstract

Artificial intelligence (AI) has emerged as a transformative force reshaping competitive landscapes, decision-making processes, and organizational capabilities. This review synthesizes research on the integration of AI into strategic management, focusing on strategic decision support, competitive advantage, organizational design, leadership, and industry-level transformation. Drawing from 25 scholarly sources, this paper explores how AI-driven analytics, automation, machine learning, and intelligent systems influence strategic planning, innovation, resource allocation, and risk management. The review highlights both the strategic benefits of AI—including improved forecasting accuracy, operational efficiency, and enhanced customer understanding—and the challenges related to data governance, skills gaps, technological dependencies, and ethical risks. A comparative table distinguishes traditional strategy practices from AI-enabled strategic management. The analysis suggests that AI does not replace strategy but transforms the tools, processes, and competencies required to develop and execute it effectively. The paper concludes by emphasizing the need for human-AI collaboration, ethical governance, continuous learning, and adaptive strategic frameworks to harness AI's full potential.