Implementing Artificial Intelligence for Strategic Decision-Making in Volatile Economic Environments

This study investigated the role of Artificial Intelligence (AI) in enhancing strategic decision-making within volatile economic environments, focusing on knowledge economy. Employing a mixed-methods approach, the research integrated a Systematic Literature Review (SLR) with secondary data analysis from 300 organizations across finance, manufacturing, retail, and healthcare sectors. Qualitative insights from the SLR identified three core themes including AI-enhanced organizational agility (75% of studies), ethical and implementation challenges (65% of studies), and knowledge economy integration (70% of studies). Quantitative findings confirmed these themes, revealing that organizations with advanced AI adoption achieve an average 25% improvement in decision accuracy and a 30% increase in operational resilience. However, ethical concerns such as algorithmic bias and privacy issues led to a 12-18% reduction in perceived trustworthiness, reported by 20% of analyzed organizations. The study extended dynamic capabilities and resource-based view theories by proposing a unified framework that integrates agility, ethical governance, and knowledge-driven alignment. Practically, it offered managerial guidance on AI deployment and ethical protocols, while advising policymakers on regulations to ensure equitable AI access, particularly for small and medium enterprises (SMEs). The research positioned AI as a critical strategic asset for navigating volatility while emphasizing risk mitigation.