Artificial Intelligence in Strategic Business Decision-making: Challenges, Biases, and Ethical Considerations in Microfinance Institutions

Author(s)	Sara Garg
Country	India
Abstract	This article analyzes the integration of artificial intelligence (AI) in strategic decision - making processes for organizations, with special attention to severe microfinance institutions (MFI). The study due to qualitative interviews with industry experts and secondary literature, and explains how AI improves efficiency, accuracy and justice in the decision, while also presenting challenges related to morality, openness and prejudice. Conclusions highlight AIS transformative ability in applications such as credit scoring, debt approval and fraud detection, which can expand financial inclusion and strengthen the operating results of the MFI. At the same time, the study emphasizes the risk of algorithm and data -driven prejudices that can exclude weak groups, questions of justice and responsibility. Overall, this research emphasizes that successful AI adoption in MFI requires balancing innovation with moral security measures to ensure only one adoption and sustainable results.
Keywords	Microfinance, Artificial Intelligence, Decision-Making, Strategic Business, Biases, Ethical Considerations.
Field	Computer Applications
Published In	Volume 7, Issue 5, September-October 2025
Published On	2025-10-26
DOI	https://doi.org/10.36948/ijfmr.2025.v07i05.58935

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