AI-Driven Decision-Making in Leadership: Balancing Automation and Human Judgment for Optimal Organizational Performance

Authors

  • Arafat Mohammed Faculty of Business & Management Unisza, Kuala Terengganu, Terengganu, Malaysia.
  • Sulaiman Abdullahi Bambale Faculty of Business & Management Unisza, Kuala Terengganu, Terengganu, Malaysia.
  • Umar Abdullahi National Board for Arabic and Islamic Studies (NBAIS) Nigeria.

DOI:

https://doi.org/10.33095/hv149002

Keywords:

Artificial Intelligence (AI), AI-Driven Leadership, Human-AI Collaboration, Ethical Decision-Making, Automation in Leadership, Explainable AI.

Abstract

This study examines how artificial intelligence (AI)-driven decision-making can be effectively balanced with human judgment to enhance organizational performance and ethical leadership. The research adopts a systematic literature review covering studies from 2015 to 2025, retrieved from Scopus, Web of Science, IEEE Xplore, and Google Scholar. Through thematic analysis, the review identifies three core dimensions: (1) the impact of AI on strategic accuracy and operational efficiency, (2) the mediating role of human judgment in fostering innovation and trust, and (3) the influence of ethical AI governance on employee well-being and accountability. The findings reveal that organizations integrating AI’s analytical precision with leaders’ contextual awareness achieve greater adaptability and stakeholder trust. However, challenges such as algorithmic bias, overreliance on automation, and insufficient AI literacy persist. The study recommends a hybrid leadership framework in which AI acts as an enabler supporting but not replacing human decision-making. Practical implications include developing AI literacy programs for leaders, establishing fairness audits, and embedding transparent governance mechanisms to ensure responsible AI adoption. Future research should empirically test this hybrid leadership model across industries and cultural contexts.

Downloads

Download data is not yet available.

References

Amit, D., Sharma, S. K., Karsoliya, S., & Chandra, P. (2024). A novel Conceptualization of AI Literacy and Empowering Employee Experience at Digital Workplace Using Generative AI and Augmented Analytics: A Survey. Journal of Electrical Systems, 20(2), 2582–2603. https://doi.org/10.52783/jes.2031

An, Y., Yu, J. H., & James, S. (2025). Investigating the higher education institutions’ guidelines and policies regarding the use of generative AI in teaching, learning, research, and administration. International Journal of Educational Technology in Higher Education, 22(1), 10. https://doi.org/10.1186/s41239-025-00507-3

Annapureddy, R., Fornaroli, A., & Gatica-Perez, D. (2025). Generative AI Literacy: Twelve Defining Competencies. Digital Government: Research and Practice, 6(1), 1–21. https://doi.org/10.1145/3685680

Babashahi, L., Barbosa, C. E., Lima, Y., Lyra, A., Salazar, H., Argôlo, M., Almeida, M. A. de, & Souza, J. M. de. (2024). AI in the Workplace: A Systematic Review of Skill Transformation in the Industry. Administrative Sciences, 14(6), 127. https://doi.org/10.3390/admsci14060127

Bankins, S., Ocampo, A. C., Marrone, M., Restubog, S. L. D., & Woo, S. E. (2024). A multilevel review of artificial intelligence in organizations: Implications for organizational behavior research and practice. Journal of Organizational Behavior, 45(2), 159–182. https://doi.org/10.1002/job.2735

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

Büber, H., & Seven, E. (2025). Strategic Decision-Making in the AI Era: An Integrated Approach Classical, Adaptive, Resource-Based, and Processual Views. International Journal of Management and Administration, 9(17), 67–97. https://doi.org/10.29064/ijma.1637935

Chhatre, R. (2025). Mitigating Bias in AI-Driven Recruitment: Ethical Challenges and Governance Solutions. Journal of Information Systems Engineering and Management, 10(48s), 462–469. https://doi.org/10.52783/jisem.v10i48s.9566

Crane, L. D., Green, M., & Soto, P. E. (2025). Measuring AI Uptake in the Workplace. FEDS Notes, 2025-02–05, None-None. https://doi.org/10.17016/2380-7172.3724

Davianto, H. (2022). The Advantages of Artificial Intelligence in Operational Decision Making. Hasanuddin Economics and Business Review, 6(1), 24. https://doi.org/10.26487/hebr.v6i1.5082

Delello, J. A., Sung, W., Mokhtari, K., Hebert, J., Bronson, A., & De Giuseppe, T. (2025). AI in the Classroom: Insights from Educators on Usage, Challenges, and Mental Health. Education Sciences, 15(2), 113. https://doi.org/10.3390/educsci15020113

Dican, L. (2025). Human-AI Collaboration and Its Impact on Decision-Making. International Journal of Multidisciplinary Research and Growth Evaluation., 6(2), 919–923. https://doi.org/10.54660/.IJMRGE.2025.6.2.919-923

El Khatib, M., & Al Falasi, A. (2021). Effects of Artificial Intelligence on Decision Making in Project Management. American Journal of Industrial and Business Management, 11(03), 251–260. https://doi.org/10.4236/ajibm.2021.113016

Twum, F. O., Osman, C., Boateng, P. A., & Owusu, J. (2025). Impact of AI on Decision-Making Processes within Collaborative Leadership Frameworks. The International Journal of Science & Technoledge. https://doi.org/10.24940/theijst/2025/v13/i3/ST2503-005

Gonzalez-Argote, J., Maldonado, E., & Maldonado, K. (2025). Algorithmic Bias and Data Justice: ethical challenges in Artificial Intelligence Systems. EthAIca, 4, 159. https://doi.org/10.56294/ai2025159

Hossain, S., Fernando, M., & Akter, S. (2025). The influence of artificial intelligence-driven capabilities on responsible leadership: A future research agenda. Journal of Management & Organization, 31(5), 2360–2384. https://doi.org/10.1017/jmo.2025.10010

Hundekari, S., Shrivastava, A., Praveen, R., Alfilh, R. H. C., Badhoutiya, A., & Singh, N. (2025). Revolutionizing Enterprise Decision-Making Leveraging AI for Strategic Efficiency and Agility. 2025 International Conference on Engineering, Technology & Management (ICETM), 1–6. https://doi.org/10.1109/ICETM63734.2025.11051858

Hwang, J. (2024). Exploring the Impact of AI on Leadership Styles: A Comparative Study of Human-Driven vs. AI-Assisted Decision-Making in High-Stakes Environments. International Journal of Science and Research Archive, 13(1), 3436–3446. https://doi.org/10.30574/ijsra.2024.13.1.2030

Karakuş, N., Gedik, K., & Kazazoğlu, S. (2025). Ethical Decision-Making in Education: A Comparative Study of Teachers and Artificial Intelligence in Ethical Dilemmas. Behavioral Sciences, 15(4), 469. https://doi.org/10.3390/bs15040469

Kim, B.-J., Kim, M.-J., & Lee, J. (2025). The dark side of artificial intelligence adoption: linking artificial intelligence adoption to employee depression via psychological safety and ethical leadership. Humanities and Social Sciences Communications, 12(1), 704. https://doi.org/10.1057/s41599-025-05040-2

Laxmi, A. D., & Chandana, K. M. (2024). Predictive Analytics and Natural Language Processing: Enhancing Leadership Decision-Making. DHARANA - Bhavan’s International Journal of Business, 11–14. https://doi.org/10.18311/dbijb/2024/44760

Magham, R. K. (2024). Mitigating Bias in AI-Driven Recruitment: The Role of Explainable Machine Learning (XAI). International Journal of Scientific Research in Computer Science, Engineering and Information Technology, 10(5), 461–469. https://doi.org/10.32628/CSEIT241051037

Mariyono, D. (2025). Integrating Artificial Intelligence in Inclusive Leadership: Transforming Educational Management for a Globalized Future. Chemistry Research and Practice, 2(2), 01–06. https://doi.org/10.64030/3065-906X.02.02.01

Marquis, Y. A., Oladoyinbo, T. O., Olabanji, S. O., Olaniyi, O. O., & Ajayi, S. A. (2024). Proliferation of AI Tools: A Multifaceted Evaluation of User Perceptions and Emerging Trend. Asian Journal of Advanced Research and Reports, 18(1), 30–35. https://doi.org/10.9734/ajarr/2024/v18i1596

Matli, W. (2024). Integration of warrior artificial intelligence and leadership reflexivity to enhance decision-making. Applied Artificial Intelligence, 38(1). https://doi.org/10.1080/08839514.2024.2411462

Mossavar-Rahmani, F., & Zohuri, B. (2024). Artificial Intelligence at Work: Transforming Industries and Redefining the Workforce Landscape. Journal of Economics & Management Research, 1–4. https://doi.org/10.47363/JESMR/2024(5)213

Murire, O. T. (2024). Artificial Intelligence and Its Role in Shaping Organizational Work Practices and Culture. Administrative Sciences, 14(12), 316. https://doi.org/10.3390/admsci14120316

Musch, S., Borrelli, M. C., & Kerrigan, C. (2024). Bridging compliance and innovation: A comparative analysis of the EU AI Act and GDPR for enhanced organisational strategy. Journal of Data Protection & Privacy, 7(1), 14. https://doi.org/10.69554/FWHU3837

Nabilla, S., Aspuri, A. S., Aini, D. N., & Anshori, M. I. (2025). Integration Of AI In Leadership Decision-Making to Improve Efficiency And Accuracy Method: Literature Review. Jurnal Fokus Manajemen, 5(2), 151–160. https://doi.org/10.37676/jfm.v5i2.8202

Nastoska, A., Jancheska, B., Rizinski, M., & Trajanov, D. (2025). Evaluating Trustworthiness in AI: Risks, Metrics, and Applications Across Industries. Electronics, 14(13), 2717. https://doi.org/10.3390/electronics14132717

Necula, S.-C., Fotache, D., & Rieder, E. (2024). Assessing the Impact of Artificial Intelligence Tools on Employee Productivity: Insights from a Comprehensive Survey Analysis. Electronics, 13(18), 3758. https://doi.org/10.3390/electronics13183758

Nyoto, N., Nyoto, R. L. V., & Renaldo, N. (2024). The Bright Side of Artificial Intelligence in Corporate Leadership: A Rapid Literature Review of the Past Five Years. Journal of Applied Business and Technology, 5(3), 193–201. https://doi.org/10.35145/jabt.v5i3.186

Pande, S., Moon, J. S., & Haque, Md. F. (2024). Education in the Era of Artificial Intelligence: An Evidence from Dhaka International University (DIU). Bangladesh Journal of Multidisciplinary Scientific Research, 9(1), 7–14. https://doi.org/10.46281/bjmsr.v9i1.2186

Pinski, M., & Benlian, A. (2024). AI literacy for users – A comprehensive review and future research directions of learning methods, components, and effects. Computers in Human Behavior: Artificial Humans, 2(1), 100062. https://doi.org/10.1016/j.chbah.2024.100062

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), 17942. https://doi.org/10.1038/s41598-025-02842-x

Sargiotis, D. (2025). Fostering Ethical and Inclusive AI: A Human-Centric Paradigm for Social Impact. International Journal of Research Publication and Reviews, 6(1), 3754–3779. https://doi.org/10.55248/gengpi.6.0125.0529

Sharma, Dr. M., & Sehgal, Mrs. L. (2023). The Revolutionary Computer Technology Artificial Intelligence that is Changing Our World & its Impact on Different Jobs. International Journal for Research in Applied Science and Engineering Technology, 11(4), 286–293. https://doi.org/10.22214/ijraset.2023.50072

Surugiu, C., Gradinaru, C., & Surugiu, M.-R. (2024). Artificial Intelligence in Business Education: Benefits and Tools. Amfiteatru Economic, 26(65), 241. https://doi.org/10.24818/EA/2024/65/241

Vijaya, G. S. (2025). The Role of Artificial Intelligence in Supply Chain Optimization. Abstracts of the 7th World Conference on Business, Management, Finance, Economics, and Marketing, 13–13. https://doi.org/10.62422/978-81-981590-7-6-002

Westover, J. H. (2025). How to Become an Effective AI-Augmented Leader. Human Capital Leadership Review, 20(4). https://doi.org/10.70175/hclreview.2020.20.4.2

Wisdom, I. (2024). AI-Augmented Leadership: Enhancing Human Decision-Making. International Journal of Advances in Engineering and Management, 06(12), 582–585. https://doi.org/10.35629/5252-0612582585

Published

2025-12-01

Issue

Section

Managerial Researches

How to Cite

Mohammed, A. and Abdullahi, U. (2025) “AI-Driven Decision-Making in Leadership: Balancing Automation and Human Judgment for Optimal Organizational Performance”, Journal of Economics and Administrative Sciences. Translated byS. Abdullahi Bambale, 31(150), pp. 129–141. doi:10.33095/hv149002.

Similar Articles

1-10 of 889

You may also start an advanced similarity search for this article.