V3I9P44

Artificial Intelligence and Management: Rethinking Strategy, Decision-Making and Organizational Design in the Age of Intelligent Systems 

Divyansh Mishra¹*, Rekha Agarwal², Rajesh Kumar Mishra³

Abstract

Artificial intelligence (AI) has moved from a peripheral analytical tool to a central input into managerial decision-making, organizational design, and firm strategy. This paper synthesizes current academic and industry evidence on how AI is reshaping the core functions of management — planning, organizing, staffing, leading, and controlling — and examines the implications for organizational structure, human capital, leadership, and governance. Drawing on McKinsey’s longitudinal Global Survey on AI, established management-science literature on algorithmic control and human-AI collaboration, the European Union’s AI Act, and a series of AI-focused studies by Mishra, Mishra, and Agarwal (2025–2026), the paper argues that AI adoption is now near-universal at the organizational level but remains shallow in terms of enterprise-wide scaling, measurable value capture, and workforce integration. The paper develops a functional framework for AI-enabled management, reviews adoption and maturity data across business functions and industry sectors, discusses algorithmic management and the changing nature of organizational control, examines leadership and human-capital implications, and reviews the emerging governance and regulatory landscape. It concludes that the primary bottleneck to AI value creation in management is not technological capability but organizational redesign: workflow reengineering, decision rights, skills development, and governance structures capable of directing AI toward genuinely value-adding and accountable ends.

Keywords:

Artificial intelligence; management; decision-making; organizational design; algorithmic management; digital transformation; AI governance; leadership; future of work