Enhancing Business Performance through Artificial Intelligence and Analytics: Evidence from U.S. Organizations

Abstract

Artificial Intelligence (AI) and business analytics have become a central element of changing organizations, as they provide them with means to make more informed decisions, operate more efficiently, and compete more effectively. This paper reviews the application of AI and analytics to enhance the performance of businesses in institutions across the U.S. The quantitative research design applied the cross sectional survey design of 250 professionals; managers, business analysts, executives, consultants, and IT specialists. The data was gathered using a structured questionnaire with 25 items using 5-point Likert scale. The reliability test showed that the item internal consistency in terms of Cronbach alpha is good ranging between 0.87 and 0.92 and a total alpha of 0.93. Descriptive statistics and chi- square analysis were used to analyze the respondents' perceptions and the significance of the response distributions. The findings indicated that there was a high awareness and use of AI with participants reporting that AI played a critical role in their competitiveness and strategic decision-making. The results showed that business analytics positively impacts decision quality, customer comprehension, and strategic planning significantly. Additionally, AI contributed to the increase in the efficiency of the operations, as it automated the processes, enhanced the productivity, workflow optimization, and cost reduction. The results also indicated the beneficial effect of AI and analytics on organisational performance, regarding innovation, increase in revenue, customer satisfaction, and sustainable competitive advantage. Data privacy, governance requirements and talent shortages are also implementation challenges, but respondents believe in the potential of AI- enabled business transformation in the future. Those organizations that invest in their AI capacity, analytics infrastructure, employee training, and governance have higher chances of succeeding in the short- and long-term in their digital business endeavors.