AI-Driven Economies: How Artificial Intelligence (AI) is Reshaping Business Administration and Decision-Making.
Keywords:
AI in Commerce, Smart Business Models, Intelligent Decision-Making, Workforce Reskilling, Digital EconomyAbstract
In an era where artificial intelligence (AI) is no longer a futuristic concept but a
transformative force in business, this article explores the profound impact of AI on business
administration and decision-making. On March 13, 2024, the European Union (EU) Parliament adopted
the world”s first law governing "artificial inelegance" the EU Artificial Intelligence Act of 2024 “the
EU AI Act, 2024”. As organizations increasingly embrace AI technologies, they are not only
enhancing operational efficiency but also reimagining their business models and strategies. This
research delves into the ways AI is revolutionizing traditional practices, from automating routine tasks
to facilitating data-driven insights that drive strategic innovation. Through compelling case studies
across various industries, we highlight the successes and challenges faced by companies navigating this
AI-driven landscape. Additionally, we examine the implications for the workforce, addressing concerns
over job displacement and the urgent need for reskilling in an increasingly automated world. By
analyzing emerging trends and projecting the long-term effects of AI on global business ecosystems,
this article provides a comprehensive overview of how AI is reshaping the future of work, competition,
and economic growth. Join us as we uncover the opportunities and risks presented by AI-driven
economies and chart a path toward a sustainable and inclusive business landscape.
References
Abbas, N., Cohen, C., Grolleman, D. J., & Mosk, B. (15 October, 2024). Artificial intelligence can
make markets more efficient - and more volatile. IMF Blog – Artificial Intelligence, International
Monetary Fund. https://www.imf.org/en/Publications/WP/Issues/2024/10/15/Artificial-Intelligence-
Can-Make-Markets-More-Efficient-and-More-Volatile.
Acacia Advisors. (20 October, 2024). The future of work: AI’s impact on workforce dynamics and skill
sets. In Navigating the AI revolution: Strategies for success (7 of 10), Retrieved from
https://chooseacacia.com/the-future-of-work-ais-impact-on-workforce-dynamics-and-skill-sets/.
Aiden, Dexter & Michael, Lewis. (September, 2024). Artificial Intelligence in Business: Enhancing
Operational Efficiency and Navigating Ethical Challenges.
Butt, J. (2023). A Comparative Analysis of the Regulatory Approach and Management Practice for
Digital Currencies, and the Role of International Financial Organizations, in Developing a Global
Regulatory Framework for Accounting Standards of Digital Crypto-Currency. The Journal of
Accounting and Management, 13(3), 7-21. Retrieved from https://dj.univdanubius.
ro/index.php/JAM/article/view/2586
Butt, J. (2023). The Impact of Artificial Intelligence (AI) on the Efficiency of Administrative Decision
Making Including Ethical & Legal Considerations and Comparative Study about Countries Already
Incorporated AI for Administrative Decisions. The Acta Universitatis Danubius. Juridica, 19(3), 7-25.
Retrieved from https://dj.univ-danubius.ro/index.php/AUDJ/article/view/2560.
Butt, J. (2023). The Role of Bureaucracy in Europe for Promoting Democracy, Equality, Good
Governance and Social Justice. Acta Universitatis Danubius. Administratio, 15(1), 7–20. Retrieved
from https://dj.univ-danubius.ro/index.php/AUDA/article/view/2585.
Butt, Junaid. (2024). From Concept to Practice: Innovations Driving Sustainable Economic
Development. 19th International Conference on European Integration - Realities and Perspectives.
Danubius International University. Retrieved from https://conferences.univdanubius.
ro/index.php/EIRP/EIRP2024/paper/view/3392.
Dabla-Norris, E. & de Mooij, R. (17 June, 2024). Fiscal policy can help broaden the gains of AI to
humanity. International Monetary Fund.
https://www.imf.org/en/Publications/WP/Issues/2024/06/17/Fiscal-Policy-Can-Help-Broaden-the-
Gains-of-AI-to-Humanity.
David, S. (17 July, 2024). How to prepare employees for AI-enhanced roles and responsibilities. Forbes
Human Resources Council. Retrieved October 20, 2024, from
https://www.forbes.com/councils/forbeshumanresourcescouncil/2024/07/17/how-to-prepareemployees-
for-ai-enhanced-roles-and-responsibilities/
European Parliament. (2024). EU Artificial Intelligence Act. Retrieved April 26, 2024, from
https://www.europarl.europa.eu/doceo/document/TA-9-2024-0138_EN.pdf.
Eyer.AI (13 April, 2024). AI for operational efficiency: Core strategies. Eyer.AI. Retrieved October 20,
, from https://eyer.ai/blog/ai-for-operational-efficiency-core-strategies/.
Georgieva, K. (14 January, 2024). AI will transform the global economy. Let’s make sure it benefits
humanity. International Monetary Fund. https://www.imf.org/en/Blogs/Articles/2024/01/14/ai-willtransform-
the-global-economy-lets-make-sure-it-benefits-humanity.
Melina, G. (25 June, 2024). Mapping the world’s readiness for artificial intelligence shows prospects
diverge. International Monetary Fund. https://www.imf.org/en/Blogs/Articles/2024/06/25/mappingthe-
worlds-readiness-for-artificial-intelligence-shows-prospects-diverge
Nandbox. (24 July, 2024). Top 8 challenges and ethical considerations in artificial intelligence.
Nandbox. Retrieved October 20, 2024, from https://nandbox.com/top-8-challenges-and-ethicalconsiderations-
in-artificial-intelligence/.
Pearlson, K. E., Saunders, C. S., & Galletta, D. F. (2024). Managing and using information systems: A
strategic approach. Wiley.
https://books.google.com.pk/books?hl=en&lr=&id=nwO2DwAAQBAJ&oi=fnd&pg=PA1&dq=Pearl
son,+K.+E.,+Saunders,+C.+S.,+%26+Galletta,+D.+F.+(2024).+Managing+and+using+information+s
ystems:+A+strategic+approach.+Wiley.&ots=kJ2J4aEjga&sig=s-
AlI3oAi83_KO3Dsz23tRlT38&redir_esc=y#v=onepage&q&f=false
Psico-smart Editorial Team. (2 September, 2024). The impact of artificial intelligence on digital skills
development in the workforce. Retrieved October 20, 2024, from https://psicosmart.
com/en/blogs/blog-the-impact-of-artificial-intelligence-on-digital-skills-development-in-theworkforce-
Sullivan, Y. & Wamba, S. F. (2024). Artificial intelligence and adaptive response to market changes:
A strategy to enhance firm performance and innovation. Journal of Business Research, 174, 114500.
Szczepański, M. (2019). Economic impacts of artificial intelligence (AI). European Parliamentary
Research Service. PE 637.967. Briefing European parliament.
https://www.europarl.europa.eu/RegData/etudes/BRIE/2019/637967/EPRS_BRI(2019)637967_EN.p
df
Veritis Group Inc. (2024). The role of artificial intelligence in business: Opportunities, challenges, and
best practices for CEOs and CTOs. Veritis Group Inc. https://www.veritis.com/blog/the-role-ofartificial-
intelligence-in-business-opportunities-challenges-and-best-practices-for-ceos-and-ctos/
Veritis. (2024). The role of artificial intelligence in business: Opportunities, challenges, and best
practices for CEOs and CTOs. Retrieved December 5, 2024, from https://www.veritis.com/blog/therole-
of-artificial-intelligence-in-business-opportunities-challenges-and-best-practices-for-ceos-andctos/
Zartis Team. (20-10-2024). AI for operational efficiency: Use cases and examples. Zartis. Retrieved
October 20, 2024, from https://www.zartis.com/ai-for-operational-efficiency-use-cases-and-examples/.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Junaid Sattar Butt
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
The author fully assumes the content originality and the holograph signature makes him responsible in case of trial.
