The Role of Artificial Intelligence in Strategic Planning and Competitive Advantage

Downloads
This study investigates how Artificial Intelligence (AI) affects strategic planning and helps industries improve their competitive positions. With digital changes becoming more overwhelming, organisations need to act fast and AI gives them the tools and guidelines they need for foresight, agility and decision intelligence. By studying more than 80 recent academic articles on the topic, the paper explores how AI merges with approaches like Resource-Based View (RBV), SWOT and Porter’s Five Forces and boosts them by using predictive analytics, natural language processing (NLP) and machine learning (ML). Looking at Amazon, Google, IBM, Tesla and SMEs reveals how AI helps improve efficiency, speed up innovation, develop well-known brands and improve interaction with the ecosystem. The findings also show that unmanaged ethical problems, governance gaps and differences in goals can hold back AI. The results point out that AI should be considered both a useful technology and a strategic partner, creating continuous value when it supports corporate aims, ethics and leadership. In addition, the paper advocates for additional research that brings together different experts to solve the challenges in AI policy, planning and its social results. Because of these insights, organisations, scholars and policymakers gain the support they need in the dynamic AI-based business environment.
Ahmed, F., Ahmed, M. R., Kabir, M. A., & Islam, M. M. (2025). Revolutionizing business analytics: The impact of artificial intelligence and machine learning. American Journal of Advanced Technology and Engineering Solutions, 1. https://doi.org/10.63125/f7yjxw69
Alhyasat, W., Alhyasat, E., & Khattab, S. A. (2025). Technology trends in strategic management in the AI era: Systematic literature review. Human Systems Management. https://doi.org/10.1177_01672533251322396
Alkhanbouli, R., Almadhaani, H. M. A., Alhosani, F., & Simsekler, M. C. E. (2025). The role of explainable artificial intelligence in disease prediction: a systematic literature review and future research directions. BMC Medical Informatics and Decision Making, 25(1). https://doi.org/10.1186/s12911-025-02944-6
Al-Mamary, Y. H. (2025). The transformative power of artificial intelligence in entrepreneurship: exploring AI’s capabilities for the success of entrepreneurial ventures. Future Business Journal, 11(1). https://doi.org/10.1186/s43093-025-00533-7
Abulibdeh, A., Chatti, C. B., Alkhereibi, A., & Menshawy, S. E. (2025). A Scoping review of the Strategic Integration of Artificial Intelligence in Higher Education: Transforming University Excellence Themes and Strategic Planning in the Digital Era. European Journal of Education, 60(1). https://doi.org/10.1111/ejed.12908
Amponsah, B. K., Adanuvor, S. Y., Frimpong, M., Buame, R., & Arhin, E. O. (2025). Investigating the challenges and opportunities of implementing AI and automation in small businesses. Intelligent Control and Automation, 16(02), 35–59. https://doi.org/10.4236/ica.2025.162003
Ayinaddis, S. G. (2025). Artificial intelligence adoption dynamics and knowledge in SMEs and large firms: A systematic review and bibliometric analysis. Journal of Innovation & Knowledge, 10(3), 100682. https://doi.org/10.1016/j.jik.2025.100682
Bevilacqua, S., Masárová, J., Perotti, F. A., et al. (2025). Enhancing top managers' leadership with artificial intelligence: Insights from a systematic literature review. Review of Managerial Science. https://doi.org/10.1007/s11846-025-00836-7
Bevilacqua, S., Masárová, J., Perotti, F. A., & Ferraris, A. (2025). Enhancing top managers’ leadership with artificial intelligence: insights from a systematic literature review. Review of Managerial Science. https://doi.org/10.1007/s11846-025-00836-7
Camilleri, M. A. (2024). Artificial intelligence governance: Ethical considerations and implications for social responsibility. Expert Systems, 41(7), e13406. https://doi.org/10.1111/exsy.13406
Chaturvedi, A., Yadav, N., & Dasgupta, M. (2025). Tech-driven transformation: Unravelling the role of artificial intelligence in shaping strategic decision-making. International Journal of Human–Computer Interaction, 1–20. https://doi.org/10.1080/10447318.2025.2456534
Choi, S., Kang, H., Kim, N., & Kim, J. (2025). How does artificial intelligence improve human decision-making? Evidence from the AI-powered Go program. Strategic Management Journal, 46(6), 1523–1554. https://doi.org/10.1002/smj.3694
Climent, R. C., Haftor, D. M., & Staniewski, M. W. (2025). AI-enabled business models for competitive advantage. Journal of Innovation & Knowledge, 9(3), 100532. https://doi.org/10.1016/j.jik.2024.100532
Chuang, Y., Chiang, H., & Lin, A. (2025). Insights from the Job Demands–Resources Model: AI’s dual impact on employees’ work and life well-being. International Journal of Information Management, 83, 102887. https://doi.org/10.1016/j.ijinfomgt.2025.102887
Dunleavy, P., & Margetts, H. (2023). Data science, artificial intelligence and the third wave of digital era governance. Public Policy and Administration. https://doi.org/10.1177/09520767231198737
Doshi, A. R., Bell, J. J., Mirzayev, E., & Vanneste, B. S. (2025). Generative artificial intelligence and evaluating strategic decisions. Strategic Management Journal, 46(3), 583–610. https://doi.org/10.1002/smj.3677
Doshi, A. R., Bell, J. J., Mirzayev, E., & Vanneste, B. S. (2024). Generative artificial intelligence and evaluating strategic decisions. Strategic Management Journal. https://doi.org/10.1002/smj.3677
Ebule, A. E. (2025). Leveraging artificial intelligence in business intelligence systems for predictive analytics. International Journal of Scientific Research and Management (IJSRM), 13(01), 1862–1879. https://doi.org/10.18535/ijsrm/v13i01.ec02
Frank, A. G., Batista, L., Chaudhuri, A., Subramaniam, N., Subramanian, A. M., Dora, M., & Ritala, P. (2025). Circular Economy and Digital Technology‐Enabled Innovation: Advances, applications and Prospects. R and D Management. https://doi.org/10.1111/radm.70003
Gama, F., & Magistretti, S. (2023). Artificial intelligence in innovation management: A review of innovation capabilities and a taxonomy of AI applications. Journal of Product Innovation Management. https://doi.org/10.1111/jpim.12698
Hossain, S., Fernando, M., & Akter, S. (2025). Digital leadership: Towards a dynamic managerial capability perspective of artificial intelligence-driven leader capabilities. Journal of Leadership & Organizational Studies. https://doi.org/10.1177/15480518251319624
Jaboob, M., Al-Ansi, A. M., Al-Okaily, M., & Ferasso, M. (2025). Harnessing artificial intelligence for strategic decision-making: The catalyst impact of digital leadership. Asia-Pacific Journal of Business Administration. https://doi.org/10.1108/APJBA-12-2024-0706
Khan, M. N., Mirza, J. B., Hasan, M. M., Paul, R., Hasan, M. R., & Asha, A. I. (2025). AI-Driven Business Intelligence in Retail: Transforming Customer Data into Strategic Decision-Making Tools. AIJMR. https://www.aijmr.com/research-paper.php?id=1123
Kučević, E., & Brandes, J. J. (2025). Guidance for Formulating an AI Strategy: A taxonomy for Organizational Strategic Perspectives towards AI. https://scholarspace.manoa.hawaii.edu/items/ebf5faad-7b02-4a80-88ca-ffc45938ca0f
Kornowicz, J., & Thommes, K. (2025). Algorithm, expert, or both? Evaluating the role of feature selection methods on user preferences and reliance. PLoS ONE, 20(3), e0318874. https://doi.org/10.1371/journal.pone.0318874
Kassa, B. Y., & Worku, E. K. (2025). The Impact of artificial intelligence on organizational performance: The mediating role of employee productivity. Journal of Open Innovation Technology Market and Complexity, 100474. https://doi.org/10.1016/j.joitmc.2025.100474
Liu, Y. D., Zhang, J. Z., Zheng, J., & Kamal, M. M. (2025). Artificial intelligence-enabled systems and innovation in B2B firms: The role of strategic agility and decision-making performance. Industrial Marketing Management, 127, 164–174. https://doi.org/10.1016/j.indmarman.2025.04.003
Liu, C., Boothman, S. G., & Graham, J. D. (2025). The rise and recent decline of Tesla’s share of the U.S. electric vehicle market. World Electric Vehicle Journal, 16(2), 90. https://doi.org/10.3390/wevj16020090
Li, F., Wei, X., Wang, C., Zhang, C., Yu, G., Yang, Y., & Liu, Y. (2025). How do users perceive AI? a Dual-Process perspective on enhancement and replacement. Telematics and Informatics Reports, 100227. https://doi.org/10.1016/j.teler.2025.100227
Machucho, R., & Ortiz, D. (2025). The Impacts of Artificial intelligence on Business Innovation: A Comprehensive review of applications, organizational challenges, and ethical considerations. Systems, 13(4), 264. https://doi.org/10.3390/systems13040264
Mahabub, S., Hossain, N. M. R., & Snigdha, N. E. Z. (2025). Data-Driven Decision-Making and Strategic Leadership: AI-Powered business operations for competitive advantage and sustainable growth. Journal of Computer Science and Technology Studies, 7(1), 326–336. https://doi.org/10.32996/jcsts.2025.7.1.24
Mayegun, K. O., & Nwanevu, C. (2025). Harnessing big data and AI to revolutionize sustainability accounting and integrated corporate financial reporting. International Journal of Computer Applications Technology and Research. https://doi.org/10.7753/ijcatr1406.1008
Madanchian, M., & Taherdoost, H. (2025). The impact of artificial intelligence on research efficiency. Results in Engineering, 104743. https://doi.org/10.1016/j.rineng.2025.104743
Marocco, S., Barbieri, B., & Talamo, A. (2025). Exploring facilitators and barriers to managers’ adoption of AI-based systems in decision making: A systematic review. AI, 5(4), 2538–2567. https://doi.org/10.3390/ai5040123
Mundlos, P. (2025). The impact of artificial intelligence on managerial attention allocation for discontinuous change: A conceptual framework. Management Review Quarterly, 75, 1–45. https://doi.org/10.1007/s11301-024-00409-0
Naheed, S., Pinto, R., & Pirola, F. (2025). A Preliminary multidimensional AI readiness assessment model for SME’s. Procedia Computer Science, 253, 774–783. https://doi.org/10.1016/j.procs.2025.01.139
Osman, N. A., Fowowe, N. O. O., Agboluaje, N. R., & Orekha, N. P. O. (2025). Integrating machine learning in business analytics consulting for proactive decision-making and innovation. World Journal of Advanced Research and Reviews, 25(1), 1817–1836. https://doi.org/10.30574/wjarr.2025.25.1.0251
Pu, Y., Li, H., Hou, W., & Pan, X. (2025). The analysis of strategic management decisions and corporate competitiveness based on artificial intelligence. Scientific Reports, 15(1). https://doi.org/10.1038/s41598-025-02842-x
Papagiannidis, E., Mikalef, P., & Conboy, K. (2025). Responsible artificial intelligence governance: A review and research framework. The Journal of Strategic Information Systems, 34(2), 101885. https://doi.org/10.1016/j.jsis.2024.101885
Shahidi Hamedani, S., Aslam, S., & Shahidi Hamedani, S. (2025). AI in business operations: Driving urban growth and societal sustainability. Frontiers in Artificial Intelligence, 8, 1568210. https://doi.org/10.3389/frai.2025.1568210
Sánchez, E., Calderón, R., & Herrera, F. (2025). Artificial Intelligence Adoption in SMES: Survey based on TOE–DOI Framework, Primary Methodology and challenges. Applied Sciences, 15(12), 6465. https://doi.org/10.3390/app15126465
Sonni, A. F. (2025). Digital transformation in journalism: Mini review on the impact of AI on journalistic practices. Frontiers in Communication, 10, 1535156. https://doi.org/10.3389/fcomm.2025.1535156
Sheard, N. (2025). Algorithm‐facilitated discrimination: a socio‐legal study of the use by employers of artificial intelligence hiring systems. Journal of Law and Society. https://doi.org/10.1111/jols.12535
Teixeira, A. R., Ferreira, J. V., & Ramos, A. L. (2025). Intelligent Supply Chain Management: A Systematic Literature Review on Artificial intelligence Contributions. Information, 16(5), 399. https://doi.org/10.3390/info16050399
Ustahaliloğlu, M. K. (2025). Artificial intelligence in corporate governance. Virtus InterPress. https://virtusinterpress.org/Artificial-intelligence-in-corporate-governance.html
Visuthiphol, S., & Pankham, S. (2025). Artificial Intelligence-Enabled Decision making in Social Media adoption for sustainable Digital business in Thai SMEs. dmame-journal.socialspacejournal.eu. https://doi.org/10.31181/dmame8120251366
Vuković, D. B., Dekpo-Adza, S., & Matović, S. (2025). AI integration in financial services: A systematic review of trends and regulatory challenges. Humanities and Social Sciences Communications, 12, 562. https://doi.org/10.1057/s41599-025-04850-8
Wang, W. (2024). Artificial intelligence in strategic Business decisions: Enhancing market Competitiveness. Advances in Economics Management and Political Sciences, 117(1), 87–93. https://doi.org/10.54254/2754-1169/117/20241987
Copyright (c) 2025 Mahdi Jafari, Avesta Shahbazi, Mohammed Kawsar, Seyed Pouyan Mousavi Davoudi, Sodaif Janani (Author)

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
By submitting your manuscript to IJABS, you agree and confirm that the paper you have submitted is your own original and unpublished work, does not contain any defamatory or other unlawful content(s), and you will accept responsibility for plagiarism. You and your co-authors retain copyright and grant BESRA the right of publication, with the work simultaneously licensed under a Creative Commons Attribution License 4.