The Impact of Generative Artificial Intelligence on Strategic Decision-Making in Businesses

The goal of this study is to analyses the effects of generative Artificial Intelligence in making business decisions in strategic decision-making. It explains about the nature of generative AI and its managerial implications and its use in analytical, forecasting, risk management and strategic alternatives generation. The study method or approach used in the theoretical part uses a descriptive analytical approach whereas in the applied part a comparison documentary analysis approach is used. The case companies were selected as Walmart, JPMorgan Chase, Moderna and Siemens from four different countries across the globe. The researcher created an analytical index to address the effects of Generative artificial intelligence on strategic decision making that allows determining the impact of relation with five dimensions: level of adoption, speed of the decision, quality of the analysis, risk management, and governance. Key findings involve the accelerated access to information, enhancing analytical quality, offering a wider range of strategic options, and facilitating forecasting and risk management with the assistance of generative AI. The study also reveals that the application of GenAI can be different for each industry and use case, and that trustworthy data, clear governance rules, and human oversight of GenAI outputs are key factors in the effectiveness of these applications.