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Paper ID:IJSREM63226

A study of the impact of generative AI on managerial decision making

Stream/Area:

-

Subject:

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Paper ID:

IJSREM63226

Volume:

10 |

5 |

May 2026

Pages:

1-10

Publication Frequency:

Monthly (12 issues per year)

DOI
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Not assigned

License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.

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Authors

Mr. Nikhil Suryakant Salve

Mr. Nikhil Suryakant Salve

BUSINESS ANALYTICS

Zeal Institute of Management and Computer Application

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Prof. CMA Shivaji Rajmane

Prof. CMA Shivaji Rajmane

Assistant Professor

Zeal Institute of Management and Computer Application

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Prof. CMA shivaji rajmane

Prof. CMA shivaji rajmane

Assistant professor

Zeal Institute of Management and Computer Application

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Abstract

Generative Artificial Intelligence (GenAI) is increasingly being used as a practical support tool for managers, especially for summarizing information, preparing reports, and exploring alternative courses of action. This paper studies how GenAI influences key aspects of managerial decision-making: decision-cycle speed, perceived decision quality, trust and transparency, adoption barriers, and perceived strategic return on investment (ROI). A quantitative survey was conducted with 100 mid-to-senior managers who have professional exposure to GenAI tools. The findings indicate that higher frequency of GenAI use, by itself, did not translate into faster decisions (r = 0.01; p > 0.90). In contrast, using GenAI for information synthesis was associated with higher perceived decision confidence and analytical depth (t-test p < 0.05; correlation r = 0.25; p < 0.01). The results also suggest that AI literacy and structured Human-in-the-Loop (HITL) practices are linked with greater trust and decision transparency. Concerns about hallucinations and data privacy remain major adoption constraints, reinforcing the need for verification and governance. Overall, GenAI appears to add the most value when treated as an assistant that improves the quality of managerial thinking, while responsibility and final judgment remain with the manager.

KEYWORDS

Index Terms: Generative AI managerial decision-making large language models Human-in-the-Loop adoption barriers decision confidence

Cite This Article

Mr. Nikhil Suryakant Salve, Prof. CMA Shivaji Rajmane, Prof. CMA shivaji rajmane, "A study of the impact of generative AI on managerial decision making," International Journal of Scientific Research in Engineering and Management, vol. 10, no. 5, pp. 1-10, May 2026.

Full Article/Conclusion

This study shows that GenAI is already influencing managerial work, particularly where decisions depend on reading, synthesizing, and communicating large amounts of information. Within our sample, the strongest observed benefit is higher perceived decision confidence and analytical depth when GenAI is used for synthesis and drafting (H2 supported). In contrast, GenAI usage frequency alone did not show a measurable relationship with perceived decision speed (H1 not supported). These results suggest that adoption intensity is not sufficient by itself; the value managers perceive depends on how GenAI is applied to decision-relevant tasks. The study also highlights a condition for sustainable value: responsible use. Because managers remain accountable for outcomes, organizations need practical support such as AI literacy programs, clear guidance on data handling, and Human-in-the-Loop checkpoints for high-impact outputs. This recommendation is consistent with risk management and governance guidance that emphasizes accountability, privacy safeguards, and traceability for trustworthy AI use (NIST, 2023; IBM Institute for Business Value, 2023). In summary, the evidence from this research supports treating GenAI as a capability that strengthens decision preparation and managerial communication rather than as an autonomous decision-maker. When combined with verification habits, privacy safeguards, and clear accountability, managers can use GenAI to improve the quality of decision inputs without weakening governance.

References

[1]         A. Agrawal, J. S. Gans, and A. Goldfarb, Prediction Machines, Updated and Expanded: The Simple Economics of Artificial Intelligence. Harvard Business Review Press, 2022. [2]          E. Brynjolfsson, D. Li, and J. J. Raymond, Generative AI at Work. National Bureau of Economic Research, 2023. [3]          T. H. Davenport and S. M. Miller, Working with AI: Real Stories of Human Machine Collaboration. MIT Press, 2022. [4]         Deloitte, The State of Generative AI in the Enterprise: Now Decides Next. Deloitte AI Institute, 2024. [5]         Gartner, Top Strategic Technology Trends for 2024: AI-Augmented Development and Management, 2024. [6]          M. M. Mariani and Y. K. Dwivedi, Generative artificial intelligence in management: A research agenda for the era of large language models, International Journal of Information Management, 2024. [7]         McKinsey Global Institute, The economic potential of generative AI: The next productivity frontier, 2023. [8]         E. Mollick, Co-Intelligence: Living and Working with AI. Portfolio/Penguin, 2024. [9]          E. M. Bender, T. Gebru, A. McMillan-Major, and S. Shmitchell, On the dangers of stochastic parrots: Can language models be too big?, in Proc. ACM Conf. Fairness, Accountability, and Transparency, pp. 610-6123, 2021. [10]         R. Cui, D. Li, and J. Zhang, The impact of generative AI on productivity and work quality: Evidence from knowledge work tasks, SSRN Electronic Journal, 2024.

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Publication Date

5/15/2026

Peer Review Type

Double-Blind Peer Review

Review Rounds: 2

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