Role of AI in Enhancing Entrepreneurial Decision-Making

Abstract

Artificial Intelligence (AI) has the potential to disrupt entrepreneurial decision-making, as it gives business leaders the ability to be well-informed and data-driven in their decision making. In this research, we explore the means by which AI can enhance and benefit the decision-making process of entrepreneurs by looking at predictive analytics, assessment of risk, and business planning, through the use of AI-supported tools that employ predictive analytics, machine learning, natural language processing, and predictive modeling which will enable entrepreneurs to draw conclusions, optimize their business performance, enhance operations, and manage uncertainty. The analysis of the data between the predictive analytics initiatives characterize, and to tap into AI-supported decision making, to employ a quantitative design, surveys based data collection on entrepreneurs using AI-support decision making tools, and base on data the impact of AI can be analyzed using correlation, ANOVA Analysis of Variance, and regression analysis towards decision making parameters, market prediction or forecasting, resource allocation, and innovation. The results of this research indicate that AI could positively impact how well entrepreneurs examine trends, assess risks, and optimize their business strategies towards outcomes of decision-making forecast. Correlation analysis predominately suggested that the use of AI had a positive correlation with better decision-making ability associatively. ANOVA results indicated that groups of levels of the use of AI to make decisions, “level 1, 2, or 3” among business decision-making outcomes was significant. Regression analysis found that “AI supported interpretation” was an important predictive contributor to forecasts of business success.