The Role of Artificial Intelligence and Digital Transformation in Modern Management: Enhancing Strategy, Efficiency, and Innovation

Abstract

This paper explores the transformative role of Artificial Intelligence (AI) and digital transformation in modern management, focusing on their impact on strategy, operational efficiency, and innovation. As organizations face rapidly changing business environments, the integration of AI has emerged as a critical factor for sustaining competitiveness. The study reviews recent literature, industry practices, and case studies to provide a comprehensive understanding of how AI-driven solutions are reshaping management functions. The findings highlight significant benefits, including improved strategic planning, optimized resource allocation, and enhanced innovation capacity, while also addressing challenges such as ethical concerns, high implementation costs, and workforce reskilling requirements. The paper concludes with recommendations for managers and policymakers to adopt responsible and future-oriented AI strategies that ensure sustainable growth.