Digital Leadership in The Era of Artificial Intelligence: Transforming Organizational Decision-Making

Dr. N. Vivek

Assistant Professor, PG Department of Commerce, The American College, Madurai

Abstract

The rapid advancement of Artificial Intelligence (AI) has transformed the way organizations operate, compete, and make strategic decisions. In the contemporary business environment, digital leadership has emerged as a critical competency that enables organizations to leverage digital technologies for innovation, efficiency, and sustainable growth. This study investigates the role of digital leadership in enhancing organizational decision-making through the adoption of AI technologies. The research examines the influence of digital leadership dimensions such as technological vision, digital competence, innovation orientation, data-driven culture, and change management on organizational decision-making effectiveness. A quantitative research design was adopted, and data were collected from 450 managerial employees working in AI-enabled organizations across India. Statistical tools including descriptive analysis, Structural Equation Modeling (SEM), cluster analysis, and Chi-square analysis were employed to examine the relationships among variables. The findings reveal that digital leadership significantly influences organizational decision-making by fostering data-driven strategies, enhancing predictive capabilities, improving operational efficiency, and promoting organizational agility. SEM results indicate that digital competence and innovation orientation have the strongest impact on decision-making effectiveness. The study contributes to the growing literature on digital leadership and AI by providing a comprehensive framework that organizations can adopt to strengthen leadership capabilities in the digital era.

Keywords

• Digital Leadership, Artificial Intelligence, Organizational Decision-Making, Digital Transformation, Data-Driven Leadership

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Cite this Article as Follows

N Vivek. (2026). Digital Leadership in The Era of Artificial Intelligence: Transforming Organizational Decision-Making: GPIR 2026 - Article 004 - ASDF EDLIB Proceedings | Electronic Digital Library [Hardbook]. In D. James (Ed.), Global Perspectives in Interdisciplinary Research July 2026 (1st ed., Vol. 1, pp. 21-29). ASDF International. Retrieved July 30, 2026, from https://edlib.net/2026/gpir2026/gpirjuly2026004.html