AI-Based Decision Making and Digital Management Innovation: A Systematic Literature Review

This study systematically reviews how Artificial Intelligence (AI) strengthens organizational decision-making and drives digital management innovation across industries. Following PRISMA guidelines, we conducted a structured search of major scholarly databases (Web of Science, Scopus, IEEE Xplore) to identify peer-reviewed articles published between 2010 and 2025. After screening more than 100 studies, 68 articles met eligibility for inclusion in the thematic synthesis. Findings reveal three central themes. First, augmentation of decision processes: AI enhances human decision-making by improving data analysis, predictive accuracy, and decision speed rather than replacing experts. Second, digital management innovation: AI adoption enables organizations to redesign management practices—such as algorithmic management and data-driven strategy—where managerial innovation mediates technology’s value creation. Third, challenges and governance: ethical risks, trust issues, and integration into decision structures remain critical obstacles. Contributions across management, information systems, and computer science demonstrate rich yet fragmented insights, underscoring the complexity of AI-enabled management. By synthesizing methodological diversity (experiments, case studies, surveys, design research), this review evaluates how AI-based decision support delivers efficiency and strategic insights while raising ethical and organizational challenges. The paper advances an integrative framework linking technological and managerial innovation, highlights gaps in cross-disciplinary integration and long-term evaluation, and proposes a forward-looking research agenda to guide scholars and practitioners in leveraging AI for effective decision support and digital-era management innovation.