Artificial Intelligence Contributes to Organizational Effectiveness through Analytical and Strategic Integration

Jovin | Arockia Rajasekar

Artificial Intelligence | Digital Transformation

Vol: 11; Iss. 12; Dec 25 | ISSN: 2454-5422

          Artificial Intelligence (AI) has emerged as a critical strategic resource reshaping organizational processes, decision-making systems, and competitive dynamics across industries. The expanding integration of AI technologies has generated growing scholarly interest in understanding their performance implications for modern businesses. This study presents an analytical synthesis of contemporary literature to examine how Artificial Intelligence contributes to business performance, identify dominant AI applications influencing organizational outcomes, and assess the enabling factors and constraints associated with AI adoption. Drawing on peer-reviewed journal articles, systematic reviews, and empirical studies published in recent years, the analysis reveals that AI enhances business performance through improvements in operational efficiency, decision quality, customer engagement, and innovation capability. Technologies such as machine learning, natural language processing, robotic process automation, and generative AI are identified as key drivers of performance gains when aligned with organizational strategy and supported by robust data infrastructure. However, the findings also indicate that AI-driven value creation is contingent upon organizational readiness, data governance, human–AI collaboration, and effective change management. The review further highlights significant research gaps, including limited longitudinal evidence, sector-specific bias, and insufficient empirical validation of generative AI impacts. By synthesizing fragmented research streams, this study contributes to a clearer understanding of AI’s strategic role in enhancing business performance and offers directions for future research and managerial practice.

Jovin. R.B, Research Scholar, Department of Commerce, St. Joseph’s College (Autonomous), Tiruchirappalli, Tamil Nadu, India.