This study aims to analyze the effect of digital leadership on organizational performance and examine the role of Artificial Intelligence (AI) in strategic decision-making as a mediating variable. Digital transformation encourages organizations to adopt data-driven technologies to improve effectiveness and efficiency, making digital leadership a crucial factor in directing the optimal use of technology. This study employs a quantitative approach with an explanatory research design to test causal relationships among variables. The data used are primary data collected through questionnaires distributed to respondents involved in strategic decision-making, such as managers and supervisors. The sampling technique used is purposive sampling, with a total sample ranging from 100 to 200 respondents. Data analysis is conducted using Structural Equation Modeling (SEM) based on Partial Least Squares (PLS). The results indicate that digital leadership has a positive and significant effect on organizational performance. Additionally, digital leadership positively influences the use of Artificial Intelligence in strategic decision-making. The use of Artificial Intelligence is proven to enhance decision quality through more accurate and faster data analysis, thereby improving organizational performance. Furthermore, Artificial Intelligence is found to mediate the relationship between digital leadership and organizational performance. These findings suggest that the influence of digital leadership on organizational performance occurs not only directly but also indirectly through the utilization of AI in strategic decision-making.
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