Leveraging Artificial Intelligence for Strategic Financial Decision-Making: Transforming Business Models in the Digital Economy

Abstract

The introduction of Artificial Intelligence (AI) has altered the strategic aspect of financial management with the use of digital economy. The paper talks about how analytical solutions induced by AI enhance the strategic financial decision-making and business model change process in digitally oriented systems. Based on the quantitative theoretical rationale, the paper makes explanations regarding the relationship between AI adoptions, decision making effectiveness, strategic agility, cognitive fit, and financial performance without utilizing the empirical data. The argument is a synthesis of the concepts of Technological Determinism, Resource-Based View (RBV), Dynamic Capabilities Theory (DCT), Cognitive Fit Theory (CFT) to propose an integrated perspective of the strategic impact of AI. These findings have demonstrated that AI is an emerging capability, which supports accuracy in decision-making, greater organizational receptiveness and information-driven business frameworks. Besides, an effective integration of strategies between human managers and AI systems is determined to be dependent on cognitive alignment. The results of the research come to the conclusion that the application of AI in financial decisions is not only the technological improvement but also the strategic requirement to remain competitive in the digital age.