The Application and Risks of AI in Enterprise Strategic Decision-Making
Research Article
Open Access
CC BY

The Application and Risks of AI in Enterprise Strategic Decision-Making

Kailong Shi 1*
1 China University of Geosciences (Wuhan)
*Corresponding author: shijinhan2005@gmail.com
Published on 4 July 2025
Volume Cover
AEMPS Vol.190
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-80590-181-5
ISBN (Online): 978-1-80590-182-2
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Abstract

The integration of Artificial Intelligence (AI) into corporate strategic decision-making marks a transformational shift in the business landscape. This study explores the applications and associated risks of AI in the context of enterprise decision-making processes. The theoretical framework relies on decision theory and AI-ethics intersection. This article hypothesized that AI can enhance the quality and efficiency of strategic decisions while acknowledging potential ethical and operational risks. Employing a mixed-method approach, including a literature review and case study analysis, this research evaluates the impact of AI on strategic decision-making in diverse business sectors. Findings reveal that AI empowers businesses with data-driven insights, predictive analytics, and automated decision-making processes, contributing to informed, real-time strategies. However, challenges such as algorithmic bias, data privacy, and regulatory compliance were identified as the substantial risks. This study highlights the innovative perspective of integrating risk management into AI deployment strategies, underscoring significant implications for the advancement of business practices and the broader field of AI ethics.

Keywords:

Artificial Intelligence, Strategic Decision-Making, Business Ethics, Risk Management, Algorithmic Bias

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Shi,K. (2025). The Application and Risks of AI in Enterprise Strategic Decision-Making. Advances in Economics, Management and Political Sciences,190,121-130.

References

[1]. Wang Yi, Wang Chengliang, & Qiu Guodong. (2024). Swarm Intelligence Learning Decision-making: Research on the Evolution of Decision-making Paradigm Empowered by "Big Data + AI". China Soft Science (12).

[2]. Lucas Bandeira, G. , & Tortato, U. . (2024). The future avenues of artificial intelligence and decision-making in business management.  RAM. Mackenzie Management Review / RAM. Revista de Administração Mackenzie,  25(6).

[3]. ZHANG Feng. (2024). Research on DW Enterprise Development Strategy in the Context of Generative Artificial Intelligence. (Doctoral dissertation, North China University of Technology).

[4]. Fan Hong, & Shi Xinnan. (2024). Application and strategy of AIGC in urban brand communication. News Lovers (9), 33-37

[5]. Wu, Y. . (2023). The Role of Humans in AI Decision-Making. (Doctoral dissertation, Pratt Institute. ;Pratt Institute. ;Pratt Institute. ).

[6]. Zhao Xuhai, Lin Qiaoqing, Li Yihua, & Zhu Lanzhou. (2021). Design and application of information quality management in the internal control of enterprises

[7]. Wei Qiang, & Zou Debao. (2021). Artificial Intelligence: The Breakthrough of Business and Capital

[8]. Li Jie. (2023). Research on the performance of Great Wall Motor's strategic transformation based on the background of digital intelligence. (Doctoral dissertation, Qingdao University of Science and Technology).

[9]. Luo Xiaopeng. (2023). Research on the Impact of Digital Transformation on Enterprise Performance: A Case Study of Shaangu Power. (Doctoral dissertation, Southwestern University of Finance and Economics).

[10]. Li Jingyi. (2023). Performance and Impact of Cross-border M&A in China's TMT Industry. (Doctoral dissertation, Beijing University of Foreign Chinese).

[11]. Mukhanova, A. , Baitemirov, M. , Ignatovich, A. , Bayegizova, A. , Tanirbergenov, A. , & Tynykulova, A. , et al. (2024). Development of a decision-making module in the field of real estate rental using machine learning methods. International Journal of Electrical & Computer Engineering (2088-8708), 14(5).

[12]. Xia Jiaojiao. (2022). Research on the business development strategy of Intel (China) AI ecological accelerator. (Doctoral dissertation, East China Normal University).

[13]. Huang Lele. (2021). A Study on the Competitive Strategy of L Medical Software Companies. (Doctoral dissertation, Guizhou University of Finance and Economics).

[14]. Lv You. (2024). Application and prospect of AIGC technology in library service innovation. Library Work and Research (3).

References

[1]. Wang Yi, Wang Chengliang, & Qiu Guodong. (2024). Swarm Intelligence Learning Decision-making: Research on the Evolution of Decision-making Paradigm Empowered by "Big Data + AI". China Soft Science (12).

[2]. Lucas Bandeira, G. , & Tortato, U. . (2024). The future avenues of artificial intelligence and decision-making in business management.  RAM. Mackenzie Management Review / RAM. Revista de Administração Mackenzie,  25(6).

[3]. ZHANG Feng. (2024). Research on DW Enterprise Development Strategy in the Context of Generative Artificial Intelligence. (Doctoral dissertation, North China University of Technology).

[4]. Fan Hong, & Shi Xinnan. (2024). Application and strategy of AIGC in urban brand communication. News Lovers (9), 33-37

[5]. Wu, Y. . (2023). The Role of Humans in AI Decision-Making. (Doctoral dissertation, Pratt Institute. ;Pratt Institute. ;Pratt Institute. ).

[6]. Zhao Xuhai, Lin Qiaoqing, Li Yihua, & Zhu Lanzhou. (2021). Design and application of information quality management in the internal control of enterprises

[7]. Wei Qiang, & Zou Debao. (2021). Artificial Intelligence: The Breakthrough of Business and Capital

[8]. Li Jie. (2023). Research on the performance of Great Wall Motor's strategic transformation based on the background of digital intelligence. (Doctoral dissertation, Qingdao University of Science and Technology).

[9]. Luo Xiaopeng. (2023). Research on the Impact of Digital Transformation on Enterprise Performance: A Case Study of Shaangu Power. (Doctoral dissertation, Southwestern University of Finance and Economics).

[10]. Li Jingyi. (2023). Performance and Impact of Cross-border M&A in China's TMT Industry. (Doctoral dissertation, Beijing University of Foreign Chinese).

[11]. Mukhanova, A. , Baitemirov, M. , Ignatovich, A. , Bayegizova, A. , Tanirbergenov, A. , & Tynykulova, A. , et al. (2024). Development of a decision-making module in the field of real estate rental using machine learning methods. International Journal of Electrical & Computer Engineering (2088-8708), 14(5).

[12]. Xia Jiaojiao. (2022). Research on the business development strategy of Intel (China) AI ecological accelerator. (Doctoral dissertation, East China Normal University).

[13]. Huang Lele. (2021). A Study on the Competitive Strategy of L Medical Software Companies. (Doctoral dissertation, Guizhou University of Finance and Economics).

[14]. Lv You. (2024). Application and prospect of AIGC technology in library service innovation. Library Work and Research (3).

Cite this article

Shi,K. (2025). The Application and Risks of AI in Enterprise Strategic Decision-Making. Advances in Economics, Management and Political Sciences,190,121-130.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of ICEMGD 2025 Symposium: Digital Transformation in Global Human Resource Management

ISBN: 978-1-80590-181-5(Print) / 978-1-80590-182-2(Online)
Editor: Florian Marcel Nuţă , An Nguyen
Conference website: https://2025.icemgd.org/
Conference date: 26 September 2025
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.190
ISSN: 2754-1169(Print) / 2754-1177(Online)

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