Artificial Intelligence Adoption and Its Impact on Global Strategic Decision Making in Multinational Corporations

Abstract

The relationship between artificial intelligence (AI) introduction and the organizational performance in the firms existing in more than one country and industry. The researcher in the study applies quantitative approach, which is founded on such extensive data as 100,000 firm-level observations, to investigate the patterns of AI adoption and their impact on productivity, organizational change. Descriptive, correlation and regression analysis was conducted to evaluate the effect of the variables of AI adoption, year of adoption, training hours, workforce impact, and role creation. The findings indicate that the direct effect of the variables of AI adoption on productivity is not critical. However, the workforce-related factors, such as the number of workers impacted and the creation of new jobs are highly correlated with organizational change. This means that AI indirectly impacts firms in terms of the structural and process level changes, but not directly impacting on performance. The study contributes to the body of knowledge by providing empirical evidence on the impact of AI on shaping organizational processes and reiterating the need to connect the implementation of AI to organizational and process capabilities of an organization. The findings suggest that businesses ought to be concerned with adopting AI strategically to achieve considerable outcomes.