Artificial Intelligence In Management And Law: Transforming Decision-Making And Legal Practices

Abstract

Background: AI is gradually being adopted in management and legal jobs disrupting decision-making potential. Opportunities include improvement in efficiency, better accuracy, and speed but threats include; uneven AI adoption, stakeholder education and preparedness, and regulatory shortcomings in various fields.

Objective: In this study, the antecedents of AI algorithm complexity in efficiency, stakeholders’ AI literacy, and regulatory environments will be analyzed concerning the efficiency of decision-making in management and law.

Methods: A quantitative research approach was used in questionnaires with closed-ended questions on a five-point Likert scale. The surveys were completed by 355 participants representing management and legal fields. Normality tests called the Kolmogorov-Smirnov test were used as well as reliability analysis (Cronbach alpha), and descriptive statistics to determine the relationship between variables.

Results: The survey showed that the overall attitude of the respondents towards the use of AI in decision-making was geometrically positive as the majority agreed that the use of AI in decision-making was positive. However, it was deemed important to perform normality tests to compare the experiences of the respondents; and the results revealed that none of the variables were normally distributed. Cronbach’s alpha test showed reliable internal structure for some variables manufactured while constructing variables such as stakeholder literacy and the presence of regulatory frameworks was somewhat variable. Bar diagrams also showed a bias towards agreements, but other disparities, including peripheral or mixed reactions, were also depicted.

Conclusions: The adoption of AI impels the efficiency of decision-making in the management and the legal fraternity. However, issues like variability in stakeholder engagement literacy, lack, or inadequacy of regulatory frameworks, and ethical issues must be dealt with. Improving public understanding of artificial intelligence, fine-tuning the legal instruments, and ensuring everyone has access to AI tools are important steps that have to be taken to get the most out of AI. It is a useful contribution to understanding the role of AI and its change and provides some guidance for policymakers and organizations on how to use them wisely.