The Impact of Artificial Intelligence Adoption on Firms’ Performance: Exploring the Mediating Role of Decision-Making Quality and Firm Creativity

Authors

  • Dr. Muhammad Ali Lecturer Institute of Management Sciences, The University of Haripur
  • Prof. Dr. Muhammad Yasir Chairman Department of Management Sciences, Hazara University
  • Dr. Sheraz Ahmed Assistant Professor Institute of Management Sciences, The University of Haripur
  • Dr. Muhammad Tufail Lecturer Institute of Management Sciences,- The University of Haripur

Abstract

The study examined the association between artificial intelligence (AI) utilization, AI-driven decision-making, firm creativity, AI capability, and enterprise performance. We adopted regression analysis and correlation techniques to test the hypotheses. Furthermore, the study findings show positive associations between AI utilization and firm performance, AI-driven decision-making, firm creativity, and AI capability. Additionally, firm creativity and decision-making quality and efficiency mediate the relationships between AI utilization and MNEs' performance. The results identify the potential of AI technologies in enhancing firms' operationalization in terms of decision-making and creativity to gain a competitive advantage. The study provides useful insights into theoretical implications regarding AI adaptation and utilization to gain a competitive advantage.

Keywords: Artificial intelligence AI, decision making, creativity, MNEs performance, novel technologies.

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Published

2025-12-18

How to Cite

Dr. Muhammad Ali, Prof. Dr. Muhammad Yasir, Dr. Sheraz Ahmed, & Dr. Muhammad Tufail. (2025). The Impact of Artificial Intelligence Adoption on Firms’ Performance: Exploring the Mediating Role of Decision-Making Quality and Firm Creativity. Dialogue Social Science Review (DSSR), 3(12), 48–62. Retrieved from https://dialoguesreview.com/index.php/2/article/view/1282

Issue

Vol. 3 No. 12 (2025): Dialogue Social Science Review (DSSR)

Section

Management Sciences