INTERNATIONAL JOURNAL OF ECONOMICS AND MANAGEMENT REVIEW
Vol 4 No 2 (2026): Current issue 11

Does AI strengthen business leadership decision making: literature review

Alifah Widya Rachmawati (Universitas Mercu Buana Yogyakarta, Indonesia)
Syamsul Hadi (Universitas Sarjanawiyata Tamansiswa, Indonesia)
Eni Purnasari (Universitas Teknologi Yogyakarta, Indonesia)
Ong Lin Dar (Universiti Malaya, Malaysia)



Article Info

Publish Date
29 Aug 2026

Abstract

Purpose - Examining how the interaction between Artificial Intelligence (AI) capabilities and organizational leadership dynamics can strengthen business strategic decision-making processes. Design/methodology/approach – A Systematic Literature Review (SLR) methodology following the PRISMA protocol was employed. Data were screened from the Scopus database up to July 2026, resulting in a final cohort of 30 English-language scholarly journal articles for qualitative analysis. Originality - Introducing the concept of "Algorithmic Bounded Rationality" to explain AI limitations (such as data bias, contextual rigidity, and factual inaccuracies) and developing a "Triple Helix" model that emphasizes the importance of synergy between machine precision and human cognitive curation (human-in-the-loop governance). Findings and Discussion – The effectiveness of AI is not technologically deterministic; AI capabilities—ranging from predictive analytics to generative models—require organizational mediators such as ethical leadership, a digital mindset, and strategic ambidexterity. AI acts as a cognitive prosthesis that frees up a leader's capacity from routine operational tasks, yet it still requires the contextual intuition and ethical governance of human leaders. Most literature focuses on quantitative or conceptual approaches, while in-depth, case-study-based qualitative research remains very limited. Conclusion – AI does not replace the role of executive leaders; instead, it serves as a cognitive aid. Organizations that successfully integrate AI's computational precision with ethical and responsive human leadership achieve the greatest competitive advantage. Keywords – Artificial Intelligence, Leadership Decision Making, Dynamic Managerial Capabilities, Algorithmic Bounded Rationality, Human AI Complementarity

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Journal Info

Abbrev

ijemr

Publisher

Subject

Humanities Economics, Econometrics & Finance Social Sciences

Description

The main subjects for economics cover national macroeconomic issues, international economic issues, interactions of national and regional economies, microeconomics and macroeconomics policies. The journal also considers thought-leading substantive research in the finance discipline. The main ...