Strategic Decision-Making and Artificial Intelligence: Exploring the Impact of AI Applications on Decision Precision and Risk Mitigation

Artificial intelligence (AI) is increasingly reshaping strategic decision-making in modern organizations by enhancing decision precision, operational agility, and risk mitigation. This study investigates the influence of AI technologies on strategic management, with a particular emphasis on their role in improving decision accuracy and managing organizational risk. A qualitative methodology was employed, utilizing semi-structured interviews with 20 senior executives representing diverse sectors in Istanbul, Turkey. Thematic analysis revealed that AI facilitates data-informed decision-making, streamlines resource deployment, enhances competitive responsiveness, and reduces uncertainty in strategic planning. Results showed that 80% of the respondents reported enhanced forecasting accuracy, while 70% highlighted AI’s contribution to more effective risk management practices. Additionally, AI was found to support scenario modeling and proactive strategy formulation. Nonetheless, key obstacles to implementation included organizational inertia (65%), data reliability concerns (55%), integration complexity (60%), and ethical considerations (40%). The study emphasizes the importance of aligning AI deployment with broader corporate strategies and fostering a culture of digital readiness to maximize AI’s strategic impact and long-term value creation.