Artificial Intelligence-Driven Decision-Making and Its Impact on Strategic Agility Evidence from Emerging Markets

• Ahmed Muayad Younus

  LUTC University, Cyberjaya, Malaysia

  Author

  https://orcid.org/0000-0002-5686-3505

This study examines the strategic role of AI-driven decision-making in enhancing organizational performance through the mediating mechanisms of strategic agility and competitive advantage. Drawing on a capability-based perspective, the research proposes and tests a structural model using data collected from 408 respondents and analyzed via structural equation modeling (SEM). The findings reveal that AI-driven decision-making positively influences strategic agility. However, AI exerts negative direct effects on both competitive advantage and organizational performance. Strategic agility significantly enhances competitive advantage, which in turn positively affects organizational performance. The results indicate an inconsistent mediation pattern, suggesting that AI generates value primarily through capability transformation rather than direct technological impact. The study contributes by repositioning AI as a strategic enabler whose performance implications depend on organizational integration and adaptive capability development. Practical implications emphasize that AI investments must be embedded within agile strategic processes to yield sustainable competitive outcomes.

1. Ahmed Muayad Younus, LUTC University, Cyberjaya, Malaysia

   Postgraduate Center (PGC)

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