The Role of Artificial Intelligence in Business Decision-Making: A Case Study of Startups

Authors

  • Sajid Mushtaq Institute of Business Administration, Khwaja Fareed University of Engineering & Information Technology, Rahim Yar Khan, Pakistan
  • Akhtar Hussain Assistant Professor, Department of Social Sciences, SZABIST University, Karachi, Pakistan
  • Muhammad Ali Chauhan Steinbeis University Berlin, Germany

DOI:

https://doi.org/10.58622/4dhxsa80

Keywords:

Artificial Intelligence, Decision-Making, Entrepreneurship, Operational Efficiency, Startups, Strategic Management, Technology Adoption

Abstract

This study examines how startups integrate artificial intelligence (AI) into strategic and operational decision-making, identifying both benefits and challenges. A qualitative case study approach was used, involving semi-structured interviews with 15 participants from five startups across HealthTech, FinTech, RetailTech, and EdTech, complemented by document analysis. Results reveal a staged AI adoption trajectory, beginning with a single high-impact use case before expanding into complex applications. AI enhanced forecasting, optimized operations, and supported rapid strategic pivots. However, high price of integration costs, lack of talent, and organizational resistance became a formidable impediment. Insights guide start-up founders, policymakers, and investors on how to approach AI adoption in phases, resource planning, and ecosystem support. This study is a rich qualitative study that bridges the research knowledge gap on the adoption of AI by startups by connecting theory to the actual practice of entrepreneurship.

Keywords: , , , , , 

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Published

2026-03-31

How to Cite

The Role of Artificial Intelligence in Business Decision-Making: A Case Study of Startups. (2026). International Journal of Social Science & Entrepreneurship, 6(1), 314-327. https://doi.org/10.58622/4dhxsa80