ARTIFICIAL INTELLIGENCE ADOPTION AND STRATEGIC PLANNING EFFECTIVENESS: AN EMPIRICAL STUDY OF ORGANIZATIONAL DECISION-MAKING
TL;DR
The study concludes that AI adoption serves as a strategic organizational capability that significantly enhances strategic planning effectiveness and suggests that organizations leveraging AI technologies are more likely to develop effective strategies, improve decision quality, enhance forecasting accuracy, and strengthen organizational adaptability.
Abstract
This study examined the influence of Artificial Intelligence (AI) adoption on strategic planning effectiveness among selected IT companies in the Philippines. As organizations increasingly operate in dynamic and data-intensive environments, AI technologies have emerged as critical tools for improving decision-making, forecasting, and strategic management. Despite the growing implementation of AI across industries, empirical evidence regarding its contribution to strategic planning effectiveness remains limited, particularly in developing economies. Using a quantitative descriptive-correlational research design, data were collected from 105 managers and executives employed in selected technology firms. A structured questionnaire measured AI adoption and strategic planning effectiveness using a seven-point Likert scale. Descriptive statistics, Pearson product-moment correlation, and linear regression analyses were employed to analyze the data. The findings revealed that AI adoption was perceived to be at a very high level, while strategic planning effectiveness was assessed as high among participating organizations. Correlation analysis indicated a strong and statistically significant positive relationship between AI adoption and strategic planning effectiveness (r = 0.78, p < 0.01). Regression analysis further demonstrated that AI adoption significantly predicted strategic planning effectiveness (β = 0.47, p < 0.001), explaining a substantial proportion of the variance in strategic planning outcomes (R² = 0.72). These results suggest that organizations leveraging AI technologies are more likely to develop effective strategies, improve decision quality, enhance forecasting accuracy, and strengthen organizational adaptability. The study concludes that AI adoption serves as a strategic organizational capability that significantly enhances strategic planning effectiveness. The findings contribute to the growing literature on AI-enabled management and provide practical implications for organizations seeking to improve strategic decision-making and achieve sustainable competitive advantage in the digital era.
