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Artificial Intelligence in Strategic Business Decisions: Enhancing Market Competitiveness
- 1 Qingdao Jiaozhou Yingzi Private School
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Abstract
Integrating Artificial Intelligence (AI) into strategic decision-making is essential for enhancing market competitiveness in today's dynamic business environment. AI technologies such as machine learning, natural language processing (NLP), and predictive analytics optimize operations, personalize customer experiences, and drive product innovation. Machine learning algorithms analyze vast data to uncover patterns, aiding better decision-making. Predictive analytics forecasts market trends and consumer behaviors, allowing companies to anticipate demand and streamline supply chains, reducing risks like overproduction and stockouts. NLP-powered chatbots improve customer interactions by handling routine inquiries, freeing human agents for complex issues, and enabling personalized marketing. AI also accelerates product development by analyzing market data and consumer feedback, simulating scenarios, and predicting outcomes. Operational efficiency is enhanced through automation and optimized workflows, saving costs and increasing productivity. Despite these benefits, challenges such as data privacy, algorithmic bias, significant investment, and a shift to a data-driven culture must be managed. Effective AI integration offers significant competitive advantages, positioning companies to leverage predictive analytics, personalized customer interactions, and operational efficiency for growth and innovation.
Keywords
Artificial Intelligence (AI), Strategic decision-making, Market competitiveness, Predictive analytics, Operational efficiency.
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Cite this article
Wang,W. (2024). Artificial Intelligence in Strategic Business Decisions: Enhancing Market Competitiveness. Advances in Economics, Management and Political Sciences,117,87-93.
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Volume title: Proceedings of the 3rd International Conference on Financial Technology and Business Analysis
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