AI in Business: Strategy and Management

Kate Huang
Apr 25
3 min read

Artificial intelligence has become one of the most influential technologies to date, revolutionizing the world and its skyrocketing influence, advancing faster than ever. From healthcare to finance to entertainment, AI has already made breakthroughs in countless industries. Among them is business: AI is transforming business strategy and management by enabling smarter decision-making, improving efficiency, and optimizing operations. It automates routine tasks yet also provides deep insights and analytics into market trends: AI, with its immense potential, has become increasingly popular and integral to businesses. Given how crucial AI has become over such a short amount of time, it is important for us to understand AI’s role in business strategy and management.

AI helps businesses analyze massive amounts of data, identifying patterns and creating predictions: AI can forecast market trends, consumer demand, and any potential risks of every decision a business makes. Businesses also use AI to simulate different scenarios and optimize their strategies. The rate at which businesses have used AI for decision-making has skyrocketed: 40% of global companies report using AI in business operations, and another 42% use AI integration – that’s 82% of businesses involved in AI. (Cardillo, 2023). Additionally, AI-powered dashboards provide instant insights for managers: this can be achieved through multiple means – data visualization, AI-powered dashboards, and intelligent reporting systems, ensuring agile and nuanced decision-making.

Perhaps the most significant and impactful area of AI in business strategy and management, AI has significantly boosted businesses’ revenue growth and sales. In 2023, McKinsey reported that a significant majority of organizations have AI-related revenue increases across various business functions, further highlighting AI’s role in enhancing market research and understanding consumer behavior (Chui, 2023). The results speak for themselves: According to Salesforce, many companies and their sales teams around the world are using AI to assist sales reps by automating non-selling tasks – which they report consists of a whopping 70% of their time: 83% of sales teams with AI saw revenue growth in 2024 vs. 66% without AI – around a 20% increase (Salesforce, 2024). Its effect on productivity enhancement is massive – AI is expected to improve employee productivity by 40%, enabling even more efficient analysis of market trends, consumer data, and more. (Prestianni, 2024).

AI not only improves the aforementioned aspects of business strategy but also greatly boosts business management. For one, AI-driven tools help business leaders streamline management processes and improve workforce efficiency. AI-powered recruitment platforms can enhance HR and hiring - they can assess resumes, conduct initial screenings, and even analyze candidates’ video interviews. Analytics can monitor productivity trends, employee engagement, and work patterns to further improve managers’ decisions. Virtual assistants can help not just managers, but employees too: Virtual assistants support employees by automating scheduling, managing workflows, answering HR-relating questions, and more Statistics show that 81% of employees report improved performance with usage of AI tools, and 68% want their employers to implement more AI technologies (Shepherd, 2025). Concerning business operations and efficiency, AI can boost productivity by automating tasks and optimizing supply chains. AI bots handle repetitive, monotonous tasks, including data entry, invoicing, payroll management, etc., thus reducing human error while increasing efficiency. AI predicts demand while managing inventory levels and optimizing logistics, reducing waste and improving cost savings for businesses: AI assistance increases worker productivity by 15%, with an increased effect for lower-skilled employees (Brynjolfsson, 2023). On top of this, AI chatbots, which are already becoming increasingly prevalent among businesses of all kinds, provide 24/7 customer service, a feature that would be difficult to implement so widely and conveniently otherwise.

Works Cited

Cardillo, Anthony. 2023. “How Many Companies Use AI? (New Data).” Exploding Topics. July 24, 2023. https://explodingtopics.com/blog/companies-using-ai/. Chui, Michael, Bryce Hall, Alex Singla, Alexander Sukharevsky, and Lareina Yee. 2023. “The State of AI in 2023: Generative AI’s Breakout Year.” McKinsey & Company. August 2023. https://www.mckinsey.com/capabilities/quantumblack/our-insights/the-state-of-ai-in2023-generative-ais-breakout-year/. Salesforce. 2024. “Salesforce Report: Sales Teams Using AI 1.3x More Likely to See Revenue Increase.” Salesforce. July 25, 2024. https://www.salesforce.com/news/stories/sales-ai-statistics-2024/. Prestianni, Timothy. 2024. “131 AI Statistics and Trends for (2024) | National University.” National University. March 2024. https://www.nu.edu/blog/ai-statistics-trends/. Shepherd, Jack. 2025. “32 Essential AI Statistics You Need to Know in 2025.” The Social Shepherd. January 1, 2025. https://thesocialshepherd.com/blog/ai-statistics/. Brynjolfsson, Erik, Danielle Li, and Lindsey Raymond. 2023. “Generative AI at Work.” ArXiv.org. April 23, 2023. https://doi.org/10.48550/arXiv.2304.11771.