Does AI strengthen business leadership decision making: literature review

Alifah Widya Rachmawati; Syamsul Hadi; Eni Purnasari; Ong Lin Dar

doi:10.58765/ijemr.v4i2.452

Authors

Alifah Widya Rachmawati Universitass Mercu Buana Yogyakarta
Syamsul Hadi Sarjanawiyata Tamansiswa University Yogyakarta
Eni Purnasari University of Technology Yogyakarta
Ong Lin Dar University Malaya, Malaysia

DOI:

https://doi.org/10.58765/ijemr.v4i2.452

Keywords:

Artificial Intelligence, Leadership Decision Making, Dynamic Managerial Capabilities, Algorithmic Bounded Rationality, Human AI Complementarity

Abstract

Purpose - Examining how the interaction between Artificial Intelligence (AI) capabilities and organizational leadership dynamics can strengthen business strategic decision-making processes.

Design/methodology/approach – A Systematic Literature Review (SLR) methodology following the PRISMA protocol was employed. Data were screened from the Scopus database up to July 2026, resulting in a final cohort of 30 English-language scholarly journal articles for qualitative analysis.

Originality - Introducing the concept of "Algorithmic Bounded Rationality" to explain AI limitations (such as data bias, contextual rigidity, and factual inaccuracies) and developing a "Triple Helix" model that emphasizes the importance of synergy between machine precision and human cognitive curation (human-in-the-loop governance).

Findings and Discussion – The effectiveness of AI is not technologically deterministic; AI capabilities—ranging from predictive analytics to generative models—require organizational mediators such as ethical leadership, a digital mindset, and strategic ambidexterity. AI acts as a cognitive prosthesis that frees up a leader's capacity from routine operational tasks, yet it still requires the contextual intuition and ethical governance of human leaders. Most literature focuses on quantitative or conceptual approaches, while in-depth, case-study-based qualitative research remains very limited.

Conclusion – AI does not replace the role of executive leaders; instead, it serves as a cognitive aid. Organizations that successfully integrate AI's computational precision with ethical and responsive human leadership achieve the greatest competitive advantage.

Keywords – Artificial Intelligence, Leadership Decision Making, Dynamic Managerial Capabilities, Algorithmic Bounded Rationality, Human AI Complementarity

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