ARTIFICIAL INTELLIGENCE IN BUSINESS AND FINANCIAL MANAGEMENT: TRANSFORMING DECISION-MAKING, RISK ANALYSIS, AND ORGANIZATIONAL PERFORMANCE

Abstract

The concept of Artificial Intelligence (AI) has become a revolutionary factor in the realm of business and financial management that essentially changes the decision-making process, the structure of risk analysis and the performance outcomes of organizations. The current review article is a synthesis of literature that evaluates the impact of AI-based technologies to the strategic and operational practices in the financial and corporate setting, such as machine learning, predictive analytics, natural language processing, and intelligent automation. Three fundamental dimensions are examined in the study: AI empowered strategic decision-making, AI-enabled risk-management innovation, and its subsequent impact on organizational performance. The review also highlights the shift of classical descriptive analytics to predictive and prescriptive models that can speed up, increase accuracy, and objectivity in executive decision-making. It also looks at the AI use in credit risk modelling, market prediction, fraud detection and enterprise risk management, with a focus on how the periodic, retrospective assessment of risk can be converted to the real-time, predictive and risk governance. The article further examines the role of AI in enhancing financial performance, operational efficiency, innovation ability and customer value creation. This review bridges the gap between AI capabilities and decision quality and risk management effectiveness as the mediating factors related to performance outcomes by suggesting an integrated conceptual framework. The results highlight the strategic role of responsible AI management and interdisciplinary research on making it a sustainable adoption. Altogether, the article places AI not only as a technological application but as a strategic capability that evolves over time to create competitive advantage in the contemporary business/financial models.