Impact of Artificial Intelligence on Managerial Decision-Making: Evidence from Global Adoption and Productivity Data

Author(s)	Joel Kallarakal
Country	India
Abstract	Artificial Intelligence (AI) is reshaping managerial decision-making by enabling firms to process large-scale data, improve forecasting accuracy, and optimize resource allocation. This paper examines the relationship between AI adoption and productivity outcomes using cross-country and firm-level secondary datasets from sources such as the OECD, McKinsey Global Institute, and World Bank Digital Adoption Index. Evidence suggests a positive correlation between AI adoption intensity and productivity growth, particularly in sectors such as finance, retail, and manufacturing. However, gains are unevenly distributed, with advanced economies benefiting more significantly than emerging markets due to infrastructure and skills gaps. The study also highlights risks associated with algorithmic bias, overreliance on automation, and governance challenges. The paper concludes that AI enhances managerial decision-making only when complemented by human judgment, institutional readiness, and ethical oversight.
Keywords	Artificial Intelligence, Productivity, Managerial Decision-Making, OECD AI Index, Digital Adoption Index, Machine Learning, Business Performance
Published In	Volume 8, Issue 4, July-August 2026
Published On	2026-07-31

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