Artificial Intelligence and Managerial Decision-Making in International Business

Abstract

Management in the age of artificial intelligence (AI) presents unique challenges and opportunities, especially in the international landscape. The technology is constantly evolving, and managers need to adapt to the new landscape that is emerging to harness its potential while considering and anticipating the risks involved. AI can disrupt traditional leadership models by automating specific tasks and decision-making processes. This challenges managers to align with this new reality and use AI to drive innovation and productivity. In addition, managers must navigate and adapt to the evolving regulatory environment, understanding but also complying with regulations around AI, data protection, and privacy, while advocating for responsible and fair governance. While AI significantly impacts management processes, the academic literature on the subject is still emerging. This study aims to explore the challenges posed by AI and how international business managers can use this technology to drive decision-making and benefit their organizations. Ten interviews were conducted with senior executives from a range of industries to collect qualitative primary data. The findings show that AI can help with decision-making, automate many processes, and improve efficiency. Top managers can use AI tools to address many challenges more effectively, but they need to understand the ethical implications and concerns that continue to arise. The findings provide theoretical implications and practical recommendations for top managers using AI technologies. Senior executives should develop AI-focused strategies; as AI becomes more prevalent across industries, managers need to understand how to integrate AI technologies into their organizations successfully.