7-IJFAES Vol. 3 No.5-May 2024-Paper6-Ms. Heba

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The Role of AI in Management

Faten Saud Juman Al-Zahrani* and Heba Saeed Mohammed Balbaid


Master of Business Administration, School of Management, Mid-Ocean University
*[email protected]

Walid Soliman Sadek and Al-Faisal Abdul Hamid


School of Management, Mid-Ocean University

Abstract
This study investigates "The Role of AI in Management" and aims to understand the
impact of AI technologies on various management practices within organizations.
The problem of the study arises from the increasing adoption of AI in the business
world and the need to comprehend its implications for managerial decision-making,
organizational efficiency, and employee experiences. The study focuses on both
theoretical and practical aspects, providing insights that can inform academic
research and guide organizations in leveraging AI effectively. To address the
research problem, a cross-sectional study design using a questionnaire as the
primary data collection tool has been selected. This design allows for the collection
of quantitative data at a specific point in time, providing a snapshot of the
relationship between AI and management practices. The questionnaire will be
administered to professionals and managers across diverse industries, representing
organizations that have implemented AI technologies in their management
processes. The importance of this study lies in its theoretical and practical
contributions. Theoretically, it expands the understanding of the role of AI in
management by examining its impact on decision-making processes, organizational
structures, and employee roles. It contributes to the existing body of knowledge by
exploring the nuances and complexities of AI implementation in managerial
contexts. Practically, the findings will provide insights and recommendations for
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organizations seeking to adopt or optimize AI technologies in their management
practices. It will guide decision-makers in understanding the potential benefits,
challenges, and best practices associated with AI integration. The scope of this study
encompasses professionals and managers across various industries, ensuring a
diverse representation of AI adoption in management practices. The focus is on
organizations that have implemented AI technologies and are actively utilizing them
in their decision-making processes, resource allocation, and performance
evaluation. The study aims to capture the perceptions, experiences, and attitudes
of participants related to the role of AI in management. Data will be collected
through a structured questionnaire distributed electronically to the selected
participants. The questionnaire will capture quantitative data on participants’
perceptions, experiences, and attitudes towards AI in management. It will include
closed-ended and Likert-scale questions, enabling efficient data collection and
analysis. The collected data will be analyzed using appropriate statistical
techniques, including descriptive statistics, correlation analysis, and regression
analysis. By employing this methodology and research tools, this study seeks to
provide a comprehensive understanding of the impact of AI on management
practices. The findings will contribute to both theoretical knowledge and practical
insights, guiding organizations in leveraging AI effectively to enhance decision-
making, improve operational efficiency, and foster innovation in management
processes.
Keywords: AI Technologies, Management Practices, Organizations.
Introduction
Artificial Intelligence (AI) has emerged as a transformative technology that has the
potential to revolutionize various fields, including management. AI encompasses
the development of intelligent systems capable of performing tasks that typically
require human intelligence, such as problem-solving, decision-making, and learning
from data. Its applications in management hold great promise for enhancing

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operational efficiency, strategic decision-making, and overall organizational
performance. The motivation to explore the role of AI in management stems from
the recognition of the significant impact this technology can have on businesses and
organizations. The integration of AI into management processes presents
opportunities to streamline operations, improve resource allocation, and drive
innovation. Moreover, understanding the implications and challenges associated
with the adoption and utilization of AI in management is crucial for decision-
makers, researchers, and practitioners alike. (Canals & Heukamp 2020).
The research aims to address several main issues and sub-problems related to the
role of AI in management. One key issue is the identification and understanding of
the challenges faced during the implementation of AI systems in management. This
involves exploring barriers such as organizational resistance, data privacy concerns,
ethical considerations, and the need for human-AI collaboration. Another crucial
aspect is investigating how AI can support decision-making processes in
management. This includes examining the integration of AI techniques, such as
machine learning and natural language processing, to enhance data analysis,
forecasting, and predictive analytics. Also we seek to explore the broader
organizational impacts of AI adoption in management. This involves assessing the
potential changes in job roles, workforce dynamics, and organizational structures
resulting from the integration of AI technologies. (Raisch, & Krakowski,2021).
The topic of the role of AI in management is highly relevant to the broader field of
science, particularly in the domains of computer science, business administration,
and organizational behavior. By investigating the potential and challenges of AI in
management, this research contributes to the advancement of knowledge in these
fields. Additionally, the findings will enable practitioners, policymakers, and
researchers to make informed decisions and develop strategies that leverage AI for
improved management practices.

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Research Problem
The integration of Artificial Intelligence (AI) into management practices presents
opportunities for improved decision-making, operational efficiency, and
organizational performance. However, the implementation and utilization of AI in
management also pose challenges and considerations that need to be addressed.
Therefore, there is a need to investigate the implications, challenges, and potential
impacts of AI adoption in the management domain.
Aim and Specific Objectives
The aim of this research is to investigate the role of Artificial Intelligence in
management and explore its implications, challenges, and potential impacts. To
achieve this aim, the following specific objectives will be pursued:
- Identify the key challenges and barriers faced during the implementation of AI
systems in management practices.
- Examine how AI techniques, such as machine learning and natural language
processing, can be effectively integrated into decision-making processes in
management.
- Investigate the potential impacts of AI adoption on job roles, workforce
dynamics, and organizational structures in the management domain.
- Analyze the ethical considerations and data privacy concerns arising from the
utilization of AI in management and propose strategies to address them.
- Explore effective approaches for collaboration and synergy between AI
technologies and human decision-makers in management processes.
- Assess the implications of AI adoption for strategic planning, resource allocation,
and innovation in the management domain.

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Research Questions
1. What are the key challenges and barriers encountered during the
implementation of AI systems in management practices?
2. How can AI techniques, such as machine learning and natural language
processing, be effectively integrated into decision-making processes in
management?
3. What are the potential impacts of AI adoption on job roles, workforce dynamics,
and organizational structures in the management domain?
4. What ethical considerations and data privacy concerns arise from the utilization
of AI in management, and how can they be addressed?
5. How can organizations ensure effective collaboration and synergy between AI
technologies and human decision-makers in management processes?
6. What are the implications of AI adoption for strategic planning, resource
allocation, and innovation in the management domain?
Research Hypotheses
- H1: Organizations that effectively integrate AI techniques into their decision-
making processes will experience improved operational efficiency and enhanced
performance compared to those that do not.
- H2: The adoption of AI in management will lead to changes in job roles and
workforce dynamics, requiring organizations to adapt their organizational
structures and human resource strategies.
- H3: Ethical considerations and data privacy concerns will pose significant
challenges in the implementation and utilization of AI systems in management
practices.
- H4: Collaboration and synergy between AI technologies and human decision-
makers will result in superior decision outcomes compared to AI or humans
working independently.

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- H5: The strategic deployment of AI in management will enable organizations to
allocate resources effectively and foster innovation.
Theoretical Model
1. AI Adoption Factors
This component represents the factors that influence the adoption of AI
technologies within organizations. It includes technological factors (e.g., AI
capabilities, infrastructure), organizational factors (e.g., leadership support,
organizational culture), and external factors (e.g., industry norms, competitive
pressures). These factors collectively shape the decision to adopt AI and set the
foundation for its integration into management practices.
2. AI Integration and Usage
This component focuses on how AI technologies are integrated into management
processes and the extent to which they are utilized within the organization. It
considers the specific applications of AI in areas such as decision-making, data
analysis, forecasting, and automation. The level of AI integration and usage is
influenced by factors such as organizational readiness, employee skills, and
technological infrastructure.
3. Management Outcomes
This component explores the outcomes and impacts of AI adoption on management
practices and organizational performance. It encompasses various dimensions,
including improved decision-making accuracy, enhanced operational efficiency,
increased innovation capabilities, and better resource allocation. The model
considers both short-term and long-term outcomes to capture the broader effects
of AI on management effectiveness.

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4. Mediating Factors
This component represents the mediating factors that explain the relationship
between AI adoption, AI integration, and management outcomes. It includes factors
such as data quality and availability, employee attitudes and acceptance of AI, and
the effective management of AI-related challenges. These mediating factors
influence the translation of AI adoption into tangible management outcomes.
5. Moderating Factors
This component accounts for the moderating factors that influence the strength
and direction of relationships within the model. It considers factors such as
organizational size, industry characteristics, regulatory environment, and the level
of AI maturity. These moderating factors shape the context in which AI operates
and its impact on management practices.
Literature Review
This section outlines the methodology employed in the study on "The Role of AI in
Management." It provides a detailed description of the research design, population,
sample characteristics, inclusion and exclusion criteria, sample size determination,
data collection procedure, and the method of analysis. By elucidating the
methodology, this chapter ensures the study's rigor and validity. The research
design selected for this study is [insert research design], which enables the
exploration of the relationship between AI and management practices. This design
allows for the collection of both qualitative and quantitative data, facilitating a
comprehensive understanding of the topic. By employing a mixed-methods
approach, the study aims to capture the nuances and complexities of AI's role in
management.
Dependent Variable
In the context of this study, the dependent variable refers to the specific outcomes
or variables of interest that are influenced by the role of AI in management. The
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dependent variable(s) represents the areas where AI has the potential to bring
about significant changes and improvements.
The literature review explores the impact of AI on various dependent variables in
management, such as decision-making accuracy, operational efficiency, innovation
capabilities, and resource allocation. By examining prior research studies and
theoretical perspectives, this section aims to identify the effects of AI adoption and
integration on these key management outcomes.
Key findings from the literature will be summarized, including empirical evidence,
theoretical models, and case studies that shed light on the relationship between AI
and the dependent variables. Moreover, any gaps or limitations in the existing
research will be identified to highlight the need for further investigation.
Independent Variable:
The independent variable(s) in this study represents the factors or variables that
influence the role and implementation of AI in management. These variables shape
the adoption, integration, and utilization of AI technologies within organizations.
The literature review delves into the various independent variables in the context
of AI in management, such as technological factors, organizational factors, and
external factors. Technological factors include the capabilities of AI systems,
availability of data, and the sophistication of algorithms. Organizational factors
encompass leadership support, organizational culture, and employee skills and
attitudes. External factors refer to industry norms, competitive pressures, and
regulatory frameworks.
Summary of Past Studies
According to Mikalef, Framnes, Danielsen, Krogstie, and Olsen (2017), AI has altered
more than just how information is generated and used for decision-making.
According to Schneider and Leyer (2019), artificial intelligence (AI) has also
completely changed how businesses operate. It has impacted trade and

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management strategies across a number of industries that provide more and more
competitive and sustainable goods and services (Govindan et al., 2019). In fact, the
interplay between artificial intelligence and human intelligence relies on algorithms
that are meant to assist managers in making the best choices. This leads to a cultural
shift where a vast amount of data, connections, and interactions are integrated into
the norm for managing organizations (Schneider & Leyer, 2019). Their knowledge
sets are so well-organized and categorized that prior studies have even
demonstrated that these models are frequently more effective than human
decision-making (Kahneman, Rosenfield, Gandhi, & Blaser, 2016). Because AI has
applications in business, i.e., intelligence processes, Sousa and Rocha (2019)
developed a model of skills requiring development - innovation, leadership, and
management - for disruptive business managers.
Knowledge Management Systems (KMS) promote intelligent work by combining
human, organizational, and technological factors to create value through
knowledge sharing. KMS foster a corporate culture that uses AI to improve
operational processes and business models. This trend can help companies connect
innovation and sustainability, integrating AI into decision-making processes for the
achievement of Sustainable Development Goals (SDGs). The business sector is
central to achieving the UN Sustainable Development Goals for 2030, as it drives
economic growth and contributes to sustainable production and consumption
models. Sustainable business models balance economic, environmental, and social
dimensions, and SDG outcomes depend on the interaction between human,
technical, and natural systems (Duan, Edwards, & Dwivedi, 2019).
(Kapoor, 2010) Researchers have looked into business intelligence's function and
application in HRM. In order to examine the business intelligence and data analytics
features integrated into human resource management modules, the researcher in
this study examined the top business intelligence provider.

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(Jain, 2018) In the research paper, the function of artificial intelligence in HRM was
identified. According to the report, the majority of businesses are implementing
contemporary technology in their HR departments, including cloud-based HR
systems, performance appraisal processes, and recruitment processes.
(Dirican, 2015) In a research paper titled "The Impact of Robotics, Artificial
Intelligence on Business and Economics," a researcher examined the potential
negative effects of using robotics and AI in the workplace on a variety of
organizational functions, including production, sales, performance management,
strategic planning, customer relationship management, banking systems, coaching,
training, and taxes.
(Buzko and others, 2016) Artificial Intelligence Technologies in Human Resource
Development is the title of the study. The authors of a study on the challenges
posed by AI in the field of human resources pointed out that AI is unable to
determine the ROI of training expenditures. The authors of the research article
observed that artificial intelligence technologies help humans analyze data more
quickly.
(R and D, 2018) The title of the research paper is "A Conceptual Study on
Recruitment through Artificial Intelligence." The researchers have described how
artificial intelligence functions in the hiring process, emphasizing its vital
significance. Artificial intelligence assists with staff relations, interview scheduling,
candidate screening, and auto-generated messaging.
(Jarrahi, 2018) Artificial Intelligence and the Future of Work: Human-AI Symbiosis
in Organizational Decision Making is the title of his research paper. The study
articles discussed how AI can benefit humans. Artificial intelligence has been useful
in helping decision-makers in organizations deal with uncertainty and, in particular,
ambiguity in their decisions. Even in this market, human interaction is crucial, and

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when making subconscious decisions is crucial, technologies must rely on people to
evaluate and facilitate the outcomes of decisions.
Theoretical Framework
1. Technological Determinism:
Technological determinism posits that technological advancements, such as AI,
have the power to shape and influence social, economic, and organizational
structures. This perspective suggests that AI has the potential to revolutionize
management processes, decision-making, and organizational behavior.
2. Resource-Based View (RBV):
The resource-based view emphasizes that the strategic advantage of organizations
lies in their unique and valuable resources. In the context of AI in management, this
perspective suggests that AI technologies, such as machine learning algorithms and
data analytics capabilities, can serve as strategic resources that enhance
organizational performance and competitiveness.
3. Agency Theory:
Agency theory focuses on the relationship between principals (managers,
executives) and agents (employees) within organizations. In the context of AI in
management, this theory explores how AI systems can act as intelligent agents,
augmenting human decision-making and reducing agency problems by providing
unbiased, data-driven insights.
4. Organizational Learning:
The concept of organizational learning highlights how organizations acquire,
interpret, and apply knowledge to improve their performance and adapt to
changing environments. In the context of AI in management, this perspective
examines how AI technologies facilitate knowledge creation, knowledge sharing,
and organizational learning processes.

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5. Ethical and Social Implications:
The theoretical framework also considers the ethical and social implications of AI in
management. This includes exploring issues such as algorithmic bias, privacy
concerns, job displacement, and the ethical use of AI technologies within
organizations. Ethical frameworks, such as consequentialism, deontology, and
virtue ethics, can be applied to analyze and guide ethical decision-making in the
context of AI adoption.
Research Methodology
This chapter presents the methodology employed in the study on "The Role of AI in
Management." The methodology section focuses on the research design,
population of the study, sample characteristics, inclusion and exclusion criteria,
sample size determination, data collection procedure, and method of analysis. By
elucidating the methodology, this chapter ensures the study's rigor, validity, and
reliability. The selected research design for this study is a cross-sectional design,
which provides a snapshot of the relationship between AI and management
practices at a specific point in time. By utilizing a questionnaire as the primary data
collection tool, this design enables the collection of quantitative data from a diverse
sample of participants. The cross-sectional design allows for the examination of
associations and patterns between AI adoption and management practices,
providing valuable insights into the current state and impact of AI in organizations.
Research Design
This study employs a cross-sectional research design to examine the role of AI in
management. A cross-sectional study allows for data collection at a specific point
in time, providing a snapshot of the relationship between AI and management
practices. By utilizing a questionnaire as the primary data collection tool, this design
enables the collection of quantitative data from a diverse sample of participants.

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Population of the Study
The population of the study consists of professionals and managers across various
industries who are involved in management practices in organizations that have
adopted AI technologies.
Sample Characteristics
The sample will be drawn from organizations of different sizes, sectors, and
geographical locations. Participants will include professionals and managers who
have direct experience with AI implementation or have been impacted by AI
technologies in their management roles. The sample will encompass individuals
with varying levels of AI integration and usage within their organizations.
Inclusion Criteria
To be included in the study, participants must meet the following criteria: (1)
employed in an organization that has implemented AI technologies in their
management practices, (2) directly involved in management roles or practices, and
(3) willing to participate in the study by completing the questionnaire.
Exclusion Criteria
Participants will be excluded from the study if they do not meet the following
criteria: (1) not employed in an organization that has implemented AI technologies
in their management practices, (2) not directly involved in management roles or
practices, or (3) unwilling to participate in the study by completing the
questionnaire.
Sample Size
Convenience sample of 20 professionals and managers across various industries
Data Collection Procedure
Data will be collected using a structured questionnaire distributed to the selected
participants. The questionnaire will be designed to capture participants'
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perceptions, experiences, and attitudes regarding the role of AI in management. It
will include both closed-ended and Likert-scale questions to gather quantitative
data. The questionnaire will be administered electronically, ensuring ease of
completion and data collection.
Method of Analysis
The collected data will be analyzed using appropriate statistical techniques.
Descriptive statistics, such as frequencies and percentages, will be used to
summarize participants' responses to each question. Inferential statistics, including
correlation analysis and regression analysis, will be employed to examine
relationships between variables and identify significant associations. The analysis
will provide insights into the impact of AI on various management practices and
outcomes.
Practical Study
Findings
Regarding the data collected from 20 participants, 80% of participants were males
while only 20% are females as explained in figure (1). 55% of participants was
between 45-55 years old , 30% was between 35-44 years old, only 5 % was 55 and
above as explained in figure (2).

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Figure (1)

Figure (2)

40% of participants had master degree, 35% had Ph.D. or higher,25% had bachelor
degree as explained in figure (3). 60% of participants were managers and 40% were
supervisors as explained in figure (4). Regarding the organizations where the

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participants work, 65% work in healthcare,25% working in technology, only 10%
works in finance as explained in figure (5).

Figure (3)

Figure (4)

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Figure (5)

75% of participants were familiar with the concept of Artificial Intelligence (AI) as
explained in figure (6). 50 % observed the implementation of AI technologies in their
workplace, while 50% said no as observed in figure (7). 75% of participants believe
that AI can enhance decision-making processes in management as explained in
figure (8). 75% of participants concerned about the potential job displacement
caused by AI in management roles as explained from figure (9).

Figure (6)
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Figure (7)

Figure (8)

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Figure (9)

75% of participants think AI can help in automating repetitive tasks and free up time
for managers to focus on strategic activities, 90% of them witnessed that AI being
utilized for data analysis and predictive analytics in their organization, 85% of
participants believe that AI can improve operational efficiency and productivity in
management practices and 65% agree with that opening to embracing AI
technologies in their current managerial role as explained in figure (10,11,12,13)

Figure (10)

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Figure (11)

Figure (12)

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Figure (13)

70% of participants think AI can assist in identifying patterns and trends that
humans may overlook, 70% of them concerned about the ethical implications of
using AI in managerial decision-making as explained in figure (14,15)

Figure (14)

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Figure (15)

Recommendations
Based on the findings of the study, the following recommendations can be made:
1. Promote Gender Diversity: The study revealed a gender imbalance among
participants, with 80% being males and only 20% females. Organizations should
strive to promote gender diversity in management roles and encourage more
women to participate in AI-related initiatives. This can be achieved through
targeted recruitment strategies, mentorship programs, and creating an inclusive
work environment that supports the growth and development of women in
managerial positions.
2. Foster Continuous Learning: Given the educational background of the
participants, with 40% having a master's degree and 35% holding a Ph.D. or
higher, organizations should emphasize continuous learning and professional
development opportunities in the field of AI. This can include providing training
programs, workshops, and resources to enhance the participants' knowledge
and skills in AI technologies and their applications in management.

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3. Bridge the Awareness Gap: While 75% of participants were familiar with the
concept of AI, the study revealed that only 50% had observed the
implementation of AI technologies in their workplace. Organizations should
bridge this awareness gap by actively promoting and communicating the
adoption and benefits of AI technologies in management practices. This can
involve sharing success stories, conducting internal training sessions, and
creating platforms for knowledge sharing and collaboration among employees.
4. Address Job Displacement Concerns: The study highlighted that 75% of
participants expressed concerns about potential job displacement caused by AI
in management roles. Organizations should address these concerns by
proactively engaging employees in discussions about the future of work and the
role of AI. This can involve providing clarity on how AI technologies can
complement human capabilities, emphasizing the importance of upskilling and
reskilling, and creating opportunities for employees to contribute to the AI
implementation process.
5. Maximize AI Potential: The findings indicated that AI can enhance decision-
making processes, automate repetitive tasks, and improve operational efficiency
and productivity. Organizations should leverage AI technologies to their full
potential by exploring AI-driven data analysis and predictive analytics tools,
integrating AI into strategic activities, and continuously seeking opportunities to
streamline and optimize management practices through AI-driven automation.
6. Consider Ethical Implications: With 70% of participants expressing concerns
about the ethical implications of using AI in managerial decision-making,
organizations should establish ethical guidelines and frameworks for the
responsible implementation and use of AI technologies. This can involve setting
up cross-functional teams or committees to ensure ethical considerations are
embedded in AI-related initiatives, promoting transparency and fairness, and
regularly assessing the impact of AI technologies on stakeholders.

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7. Encourage Collaboration and Innovation: The study revealed positive attitudes
towards embracing AI technologies, with 65% of participants agreeing to
opening up to embracing AI technologies in their current managerial roles.
Organizations should foster a culture of collaboration and innovation by
encouraging employees to explore and experiment with AI-driven solutions,
facilitating cross-functional collaboration, and providing a platform for sharing
ideas and feedback related to AI implementation in management practices.
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Appendix
Questionnaire
**Part One: Demographic Data**
1. Gender:
- Male
- Female
2. Age:
- 18-24 years
- 25-34 years
- 35-44 years
- 45-54 years
- 55 years or above
3. Educational Background:
- High School Diploma
- Bachelor's Degree
- Master's Degree
- Ph.D. or higher
4. Current Job Title/Position:
- Manager
- Supervisor
- Executive
- Consultant
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5. Industry:
- Technology
- Finance/Banking
- Healthcare
- Manufacturing
- Retail
**Part Two: The Role of AI in Management**
6. Are you familiar with the concept of Artificial Intelligence (AI)?
- Yes
- No
7. Have you observed the implementation of AI technologies in your workplace?
- Yes
- No
8. Do you believe that AI can enhance decision-making processes in management?
- Yes
- No
9. Are you concerned about the potential job displacement caused by AI in management roles?
- Yes
- No
10. Do you think AI can help in automating repetitive tasks and free up time for managers to focus
on strategic activities?
- Yes
- No
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11. Have you witnessed AI being utilized for data analysis and predictive analytics in your
organization?
- Yes
- No
12. Do you believe that AI can improve operational efficiency and productivity in management
practices?
- Yes
- No
13. Are you open to embracing AI technologies in your current managerial role?
- Yes
- No
14. Do you think AI can assist in identifying patterns and trends that humans may overlook?
- Yes
- No
15. Are you concerned about the ethical implications of using AI in managerial decision-making?
- Yes
- No

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