AI-Driven Predictive Analytics and Decision Outcomes in Modern Enterprises: Impacts on Decision Quality, Speed, and Operational Performance
Iqbal Ansari , Department of Information Technology Project Management, Westcliff University, California, USA Kiran Bhujel , Doctor of Business Administration, International American University, Los Angeles, California, USA Usman Khawaja , Senior Engineer, AI and IoTAbstract
The fact that Artificial Intelligence (AI) has quickly been integrated into the information systems of enterprises has reinvented the decision-making process and allowed organizations to transition to predictive strategies rather than reactive ones. The current paper explores how AI-based predictive analytics can change the quality of decisions, speed, and performance of modern companies. Based on multi-industry data sets and recorded enterprise benchmarks, the study employs a quasi-experimental design based on difference-in-differences estimation and panel regression models to eliminate the causal influence of AI adoption. Quantitative data indicate that the organizations that use AI-enabled predictive systems experience, on average, 17-25% decrease in decision latency, 20% increase in the accuracy of forecasts, and 9-14% increase of the operational key performance indicators (KPIs) like cost efficiency and timeliness. Such effects are enhanced in companies where information-system maturity is high and strong data-governance systems are in place. The findings indicate that AIs value is not only achieved by implementing algorithmic sophistication, but also by integrating systems as part of enterprise architectures and decision processes. The article also develops a governance-risk framework of sustainable AI implementation with a focus on explainability, auditability, and human supervision. Altogether, this study adds to the intersection of AI and Information Systems as it provides empirical data on how predictive analytics facilitates the process of managerial decision-making and develops an operational model that businesses may adopt to achieve the best ROI on AI investments. The research ends with the strategic suggestions on merging AI maturity with organizational readiness to provide visibility, data-driven, and ethically controlled decision ecosystems.
Keywords
AI-driven analytics, predictive models, decision quality, enterprise information systems, operational performance
References
Power DJ. A brief history of decision support systems. DSSResources.com. 2007.
Chen H, Chiang RHL, Storey VC. Business Intelligence and Analytics: From Big Data to Big Impact. MIS Q. 2012;36(4):1165-1188.
McAfee A, Brynjolfsson E. Big data: the management revolution. Harv Bus Rev. 2012;90(10):60-68.
Provost F, Fawcett T. Data Science and its Relationship to Big Data and Data-Driven Decision Making. Big Data. 2013;1(1):51-59.
Siegel E. Predictive Analytics: The Power to Predict Who Will Click, Buy, Lie, or Die. 1st ed. Wiley; 2013.
Shmueli G, Koppius OR. Predictive Analytics in Information Systems Research. MIS Q. 2011;35(3):553-572.
Davenport TH, Harris JG, Morison R. Analytics at Work: Smarter Decisions, Better Results. Harvard Business Press; 2010.
Brynjolfsson E, Rock D, Syverson C. Artificial Intelligence and the Modern Productivity Paradox: A Clash of Expectations and Statistics. In: The Economics of Artificial Intelligence: An Agenda. University of Chicago Press; 2018.
Ransbotham S, Kiron D, Gerbert P, Reeves M. Reshaping Business With Artificial Intelligence. MIT Sloan Manag Rev. 2017;59(1).
Orlikowski WJ. The Duality of Technology: Rethinking the Concept of Technology in Organizations. Organ Sci. 1992;3(3):398-427.
DeLone WH, McLean ER. The DeLone and McLean Model of Information Systems Success: A Ten-Year Update. J Manag Inf Syst. 2003;19(4):9-30.
Simon HA. Administrative Behavior: A Study of Decision-Making Processes in Administrative Organization. 4th ed. Free Press; 1997.
Rai A, Constantinides P, Sarker S. Next Generation Digital Platforms: Toward Human-AI Hybrids. MIS Q. 2019;43(1):iii-ix.
Ghasemaghaei M, Calic G. Assessing the impact of big data on firm innovation performance: Big data is not always better data. J Bus Res. 2020;108:147-162.
Huber GP. Organizational Learning: The Contributing Processes and the Literatures. Organ Sci. 1991;2(1):88-115.
March JG. Exploration and Exploitation in Organizational Learning. Organ Sci. 1991;2(1):71-87.
LeCun Y, Bengio Y, Hinton G. Deep learning. Nature. 2015;521(7553):436-444.
Jordan MI, Mitchell TM. Machine learning: Trends, perspectives, and prospects. Science. 2015;349(6245):255-260.
Shrestha YR, Ben-Menahem SM, Von Krogh G. Organizational Decision-Making Structures in the Age of Artificial Intelligence. Calif Manage Rev. 2019;61(4):66-83.
Khandani AE, Kim AJ, Lo AW. Consumer credit-risk models via machine-learning algorithms. J Bank Finance. 2010;34(11):2767-2787.
Barboza F, Kimura H, Altman E. Machine learning models and bankruptcy prediction. Expert Syst Appl. 2017;83:405-417.
Kumar V, Bhagwat Y, Zhang X. Rethinking customer churn in the era of big data. J Serv Res. 2015;18(3):297-309.
Wang G, Gunasekaran A, Ngai EWT, Papadopoulos T. Big data analytics in logistics and supply chain management: Certain investigations for research and applications. Int J Prod Econ. 2016;176:98-110.
Choi TM, Wallace SW, Wang Y. Big Data Analytics in Operations Management. Prod Oper Manag. 2018;27(10):1868-1883.
Provost F, Fawcett T. Data Science for Business: What You Need to Know About Data Mining and Data-Analytic Thinking. 1st ed. O'Reilly Media; 2013.
El Sawy OA. The 3 Faces of IS Identity: Connection, Immersion, and Fusion. Commun Assoc Inf Syst. 2003;12(1):39.
Davenport TH. The AI Advantage: How to Put the Artificial Intelligence Revolution to Work. The MIT Press; 2018.
Brynjolfsson E, McElheron K. The Great Decoupling: An Interview with Erik Brynjolfsson. Harv Bus Rev. 2015.
Budish E, Cramton P, Shim J. The High-Frequency Trading Arms Race: Frequent Batch Auctions as a Market Design Response. Q J Econ. 2015;130(4):1547-1621.
Lee J, Bagheri B, Kao HA. A Cyber-Physical Systems architecture for Industry 4.0-based manufacturing systems. Manuf Lett. 2015;3:18-23.
Porter ME, Heppelmann JE. How Smart, Connected Products Are Transforming Companies. Harv Bus Rev. 2015;93(10):96-114.
Brynjolfsson E, Mitchell T. What can machine learning do? Workforce implications. Science. 2017;358(6370):1530-1534.
Duan Y, Edwards JS, Dwivedi YK. Artificial intelligence for decision making in the era of Big Data – evolution, challenges and research agenda. Int J Inf Manage. 2019;48:63-71.
Bates DW, Saria S, Ohno-Machado L, Shah A, Escobar G. Big data in health care: using analytics to identify and manage high-risk and high-cost patients. Health Aff (Millwood). 2014;33(7):1123-1131.
Tao F, Qi Q, Liu A, Kusiak A. Data-driven smart manufacturing. J Manuf Syst. 2018;48:157-169.
Fountaine T, McCarthy B, Saleh T. Building the AI-Powered Organization. Harv Bus Rev. 2019;97(4):62-73.
Karimi J, Walter Z. The Role of Dynamic Capabilities in Responding to Digital Disruption: A Factor-Based Study of the Newspaper Industry. J Manag Inf Syst. 2015;32(1):39-81.
Markus ML, Tanis C. The Enterprise System Experience - From Adoption to Success. In: Framing the Domains of IT Research: Glimpsing the Future Through the Past. Pinnaflex Educational Resources; 2000.
Kiron D, Shockley R. Creating Business Value with Analytics. MIT Sloan Manag Rev. 2011;53(1):57.
Legner C, Eymann T, Hess T, et al. Digitalization: Opportunity and Challenge for the Business and Information Systems Engineering Community. Bus Inf Syst Eng. 2017;59(4):301-308.
Sambamurthy V, Bharadwaj A, Grover V. Shaping Agility through Digital Options: Reconceptualizing the Role of Information Technology in Contemporary Firms. MIS Q. 2003;27(2):237-263.
Ross JW, Beath CM, Sebastian IM. How to Develop a Great Digital Strategy. MIT Sloan Manag Rev. 2017;58(2):7-9.
Cohen WM, Levinthal DA. Absorptive Capacity: A New Perspective on Learning and Innovation. Adm Sci Q. 1990;35(1):128-152.
Roberts N, Galluch PS, Dinger M, Grover V. Absorptive Capacity and Information Systems Research: Review, Synthesis, and Directions for Future Research. MIS Q. 2012;36(2):625-648.
Grover V, Chiang RHL, Liang TP, Zhang D. Creating Strategic Business Value from Big Data Analytics: A Research Framework. J Manag Inf Syst. 2018;35(2):388-423.
Martin K. Ethical Implications and Accountability of Algorithms. J Bus Ethics. 2019;160:835-850.
O'Neil C. Weapons of Math Destruction: How Big Data Increases Inequality and Threatens Democracy. Crown Publishing Group; 2016.
Barocas S, Selbst AD. Big Data's Disparate Impact. Calif Law Rev. 2016;104:671.
Adadi A, Berrada M. Peeking Inside the Black-Box: A Survey on Explainable Artificial Intelligence (XAI). IEEE Access. 2018;6:52138-52160.
Ribeiro MT, Singh S, Guestrin C. "Why Should I Trust You?": Explaining the Predictions of Any Classifier. In: Proceedings of the 22nd ACM SIGKDD International Conference on Knowledge Discovery and Data Mining; 2016:1135-1144.
European Commission. Proposal for a Regulation laying down harmonised rules on artificial intelligence (Artificial Intelligence Act). 2021.
Khatri V, Brown CV. Designing Data Governance. Commun ACM. 2010;53(1):148-152.
Tallon PP, Ramirez RV, Short JE. The Information Artifact in IT Governance: Toward a Theory of Information Governance. J Manag Inf Syst. 2013;30(3):141-178.
Wamba-Taguimdje SL, Fosso Wamba S, Kala Kamdjoug JR, Tchatchouang Wanko CE. Influence of artificial intelligence (AI) on firm performance: the business value of AI-based transformation projects. Bus Process Manag J. 2020;26(7):1893-1924.
Teece DJ, Pisano G, Shuen A. Dynamic Capabilities and Strategic Management. Strateg Manag J. 1997;18(7):509-533.
Wade M, Hulland J. Review: The Resource-Based View and Information Systems Research: Review, Extension, and Suggestions for Future Research. MIS Q. 2004;28(1):107-142.
Müller O, Fay M, Vom Brocke J. The Effect of Big Data and Analytics on Firm Performance: An Econometric Analysis Considering Industry Characteristics. J Manag Inf Syst. 2018;35(2):488-509.
Aral S, Weill P. IT Assets, Organizational Capabilities, and Firm Performance: How Resource Allocations and Organizational Differences Explain Performance Variation. Organ Sci. 2007;18(5):763-780.
Gregory RW, Henfridsson O, Kaganer E, Kyriakou H. The Role of Artificial Intelligence and Data Network Effects for Creating User Value. Acad Manage Rev. 2021;46(3):534-551.
Benbya H, Davenport TH, Pachidi S. Artificial Intelligence in Organizations: Current State and Future Opportunities. MIS Q Exec. 2020;19(4).
Artificial Intelligence and Machine Learning as Business Tools: A Framework for Diagnosing Value Destruction Potential - Md Nadil Khan, Tanvirahmedshuvo, Md Risalat Hossain Ontor, Nahid Khan, Ashequr Rahman - IJFMR Volume 6, Issue 1, January-February 2024. https://doi.org/10.36948/ijfmr.2024.v06i01.23680
AI and Machine Learning in International Diplomacy and Conflict Resolution - Mir Abrar Hossain, Kazi Sanwarul Azim, A H M Jafor, Azher Uddin Shayed, Nabila Ahmed Nikita, Obyed Ullah Khan - AIJMR Volume 2, Issue 5, September-October 2024. https://doi.org/10.62127/aijmr.2024.v02i05.1095
The Integration of AI and Machine Learning in Supply Chain Optimization: Enhancing Efficiency and Reducing Costs - Syed Kamrul Hasan, MD Ariful Islam, Ayesha Islam Asha, Shaya afrin Priya, Nishat Margia Islam - IJFMR Volume 6, Issue 5, September-October 2024. https://doi.org/10.36948/ijfmr.2024.v06i05.28075
AI-driven Predictive Analytics, Healthcare Outcomes, Cost Reduction, Machine Learning, Patient Monitoring - Sarowar Hossain, Ahasan Ahmed, Umesh Khadka, Shifa Sarkar, Nahid Khan - AIJMR Volume 2, Issue 5, September-October 2024. https://doi.org/ 10.62127/aijmr.2024.v02i05.1104
Maham Saeed, Muhammad Saqib Jalil, Fares Mohammed Dahwal, Mohammad Tonmoy Jubaear Mehedy, Esrat Zahan Snigdha, Abdullah al mamun, & MD Nadil khan. (2025). The Impact of AI on Healthcare Workforce Management: Business Strategies for Talent Optimization and IT Integration. The American Journal of Medical Sciences and Pharmaceutical Research, 7(03), 136–156. https://doi.org/10.37547/tajmspr/Volume07Issue03-15.
Muhammad Saqib Jalil, Esrat Zahan Snigdha, Mohammad Tonmoy Jubaear Mehedy, Maham Saeed, Abdullah al mamun, MD Nadil khan, & Nahid Khan. (2025). AI-Powered Predictive Analytics in Healthcare Business: Enhancing OperationalEfficiency and Patient Outcomes. The American Journal of Medical Sciences and Pharmaceutical Research, 93–114. https://doi.org/10.37547/tajmspr/Volume07Issue03-13.
Abdullah al mamun, Muhammad Saqib Jalil, Mohammad Tonmoy Jubaear Mehedy, Maham Saeed, Esrat Zahan Snigdha, MD Nadil khan, & Nahid Khan. (2025). Optimizing Revenue Cycle Management in Healthcare: AI and IT Solutions for Business Process Automation. The American Journal of Engineering and Technology, 141–162. https://doi.org/10.37547/tajet/Volume07Issue03-14.
Hasan, M. M., Mirza, J. B., Paul, R., Hasan, M. R., Hassan, A., Khan, M. N., & Islam, M. A. (2025). Human-AI Collaboration in Software Design: A Framework for Efficient Co Creation. AIJMR-Advanced International Journal of Multidisciplinary Research, 3(1). DOI: 10.62127/aijmr.2025.v03i01.1125
Gazi Mohammad Moinul Haque, Dhiraj Kumar Akula, Yaseen Shareef Mohammed, Asif Syed, & Yeasin Arafat. (2025). Cybersecurity Risk Management in the Age of Digital Transformation: A Systematic Literature Review. The American Journal of Engineering and Technology, 7(8), 126–150. https://doi.org/10.37547/tajet/Volume07Issue08-14
Yaseen Shareef Mohammed, Dhiraj Kumar Akula, Asif Syed, Gazi Mohammad Moinul Haque, & Yeasin Arafat. (2025). The Impact of Artificial Intelligence on Information Systems: Opportunities and Challenges. The American Journalof Engineering and Technology, 7(8), 151–176. https://doi.org/10.37547/tajet/Volume07Issue08-15
Yeasin Arafat, Dhiraj Kumar Akula, Yaseen Shareef Mohammed, Gazi Mohammad Moinul Haque, Mahzabin Binte Rahman, & Asif Syed. (2025). Big Data Analytics in Information Systems Research: Current Landscape and Future Prospects Focus: Data science, cloud platforms, real-time analytics in IS. The American Journal of Engineering and Technology, 7(8), 177–201. https://doi.org/10.37547/tajet/Volume07Issue08-16
Dhiraj Kumar Akula, Yaseen Shareef Mohammed, Asif Syed, Gazi Mohammad Moinul Haque, & Yeasin Arafat. (2025). The Role of Information Systems in Enhancing Strategic Decision Making: A Review and Future Directions. The American Journal of Management and Economics Innovations, 7(8), 80–105. https://doi.org/10.37547/tajmei/Volume07Issue08-07
Dhiraj Kumar Akula, Kazi Sanwarul Azim, Yaseen Shareef Mohammed, Asif Syed, & Gazi Mohammad Moinul Haque. (2025). Enterprise Architecture: Enabler of Organizational Agility and Digital Transformation. The American Journalof Management and Economics Innovations, 7(8), 54–79. https://doi.org/10.37547/tajmei/Volume07Issue08-06
Suresh Shivram Panchal, Iqbal Ansari, Kazi Sanwarul Azim, Kiran Bhujel, & Yogesh Sharad Ahirrao. (2025). Cyber Risk And Business Resilience: A Financial Perspective On IT Security Investment Decisions. The American Journal of Engineering and Technology, 7(09), 23–48.https://doi.org/10.37547/tajet/Volume07Issue09-04
Iqbal Ansari, Kazi Sanwarul Azim, Kiran Bhujel, Suresh Shivram Panchal, & Yogesh Sharad Ahirrao. (2025). Fintech Innovation And IT Infrastructure: Business Implications For Financial Inclusion And Digital Payment Systems. The American Journal of Engineering and Technology, 7(09), 49–73. https://doi.org/10.37547/tajet/Volume07Issue09-05.
Asif Syed, Iqbal Ansari, Kiran Bhujel, Yogesh Sharad Ahirrao, Suresh Shivram Panchal, & Yaseen Shareef Mohammed. (2025). Blockchain Integration In Business Finance: Enhancing Transparency, Efficiency, And Trust In Financial Ecosystems. The American Journal of Engineering and Technology, 7(09), 74–99. https://doi.org/10.37547/tajet/Volume07Issue09-06.
Kiran Bhujel, Iqbal Ansari, Kazi Sanwarul Azim, Suresh Shivram Panchal, & Yogesh Sharad Ahirrao. (2025). Digital Transformation In Corporate Finance: The Strategic Role Of IT In Driving Business Value. The American Journal of Engineering and Technology, 7(09), 100–125. https://doi.org/10.37547/tajet/Volume07Issue09-07.
Yogesh Sharad Ahirrao, Iqbal Ansari, Kazi Sanwarul Azim, Kiran Bhujel, & Suresh Shivram Panchal. (2025). AI-Powered Financial Strategy: Transforming Business Decision-Making Through Predictive Analytics. The American Journal of Engineering and Technology, 7(09), 126–151. https://doi.org/10.37547/tajet/Volume07Issue09-08.
Keya Karabi Roy, Maham Saeed, Mahzabin Binte Rahman, Kami Yangzen Lama, & Mustafa Abdullah Azzawi. (2025). Leveraging artificial intelligence for strategic decision-making in healthcare organizations: a business it perspective. The American Journal of Applied Sciences, 7(8), 74–93. https://doi.org/10.37547/tajas/Volume07Issue08-07
Maham Saeed. (2025). Data-Driven Healthcare: The Role of Business Intelligence Tools in Optimizing Clinical and Operational Performance. The American Journal of Applied Sciences, 7(8), 50–73. https://doi.org/10.37547/tajas/Volume07Issue08-06
Kazi Sanwarul Azim, Maham Saeed, Keya Karabi Roy, & Kami Yangzen Lama. (2025). Digital transformation in hospitals: evaluating the ROI of IT investments in health systems. The American Journal of Applied Sciences, 7(8), 94–116. https://doi.org/10.37547/tajas/Volume07Issue08-08
Kami Yangzen Lama, Maham Saeed, Keya Karabi Roy, & MD Abutaher Dewan. (2025). Cybersecurityac Strategies in Healthcare It Infrastructure: Balancing Innovation and Risk Management. The American Journal of Engineering and Technology, a7(8), 202–225. https://doi.org/10.37547/tajet/Volume07Issue08-17
Maham Saeed, Keya Karabi Roy, Kami Yangzen Lama, Mustafa Abdullah Azzawi, & Yeasin Arafat. (2025). IOTa and Wearable Technology in Patient Monitoring: Business Analyticacs Applications for Real-Time Health Management. The American Journal of Engineering and Technology, 7(8), 226–246. https://doi.org/10.37547/tajet/Volume07Issue08-18
Bhujel, K., Bulbul, S., Rafique, T., Majeed, A. A., & Maryam, D. S. (2024). Economic Inequality And Wealth Distribution. Educational Administration: Theory and Practice, 30(11), 2109–2118. https://doi.org/10.53555/kuey.v30i11.10294
Groenewald, D. E. S., Bhujel, K., Bilal, M. S., Rafique, T., Mahmood, D. S., Ijaz, A., Kantharia, D. F. A., & Groenewald, D. C. A. (2024). Enhancing Organizational performance through competency-based human resource management: A novel approach to performance evaluation. Educational Administration: Theory and Practice, 30(8), 284–290. https://doi.org/10.53555/kuey.v30i8.7250
Download and View Statistics
Copyright License
Copyright (c) 2026 Iqbal Ansari, Kiran Bhujel, Usman Khawaja

This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain the copyright of their manuscripts, and all Open Access articles are disseminated under the terms of the Creative Commons Attribution License 4.0 (CC-BY), which licenses unrestricted use, distribution, and reproduction in any medium, provided that the original work is appropriately cited. The use of general descriptive names, trade names, trademarks, and so forth in this publication, even if not specifically identified, does not imply that these names are not protected by the relevant laws and regulations.


Engineering and Technology
| Open Access |
DOI: