AI-Augmented Leadership: The Role of AI in Transforming Organizational Decision-Making Process

Abstract

This paper analyzes the role of artificial intelligence (AI) in transforming leadership in organizations and improving strategic decision-making in the digital economy. As businesses increasingly rely on data-driven insights, AI technologies become more accurate, efficient, and adaptable, as they automate data processing, uncover more complex patterns, and enable predictive analytics. This study uses a mixed methodology, combining quantitative analysis of the efficacy of machine learning with qualitative analysis of leadership case studies to determine the role of AI in enhancing decision accuracy and organizational responsiveness. The results indicate a gradual shift towards human decision-making, with a hybrid collaboration of humans and AI expected to replace human creativity and ethical judgment. AI's impact is most significant in data-driven and analytical tasks, while human capabilities remain essential in communication, emotional decision-making, and strategic control. This paper presents an overview of AI-enhanced leadership qualities that leaders should possess: transparent governance, explainable AI systems, and continuous skill development for ethical, inclusive, and sustainable decision-making. This combination makes AI not a substitute for leaders, but a strategic ally in developing more innovative and adaptable organizations.