THE ROLE OF ARTIFICIAL INTELLIGENCE IN MODERN ECONOMIES: A Management Perspective

Artificial Intelligence (AI) has become a critical driver of transformation in modern economies and management systems. The growing use of artificial intelligence technologies, including machine learning, robotics, predictive analytics, and the use of natural language processing has greatly influenced organizational productivity, operational effectiveness, strategic decision-making, and business innovation. AI is widely used in sectors including finance, healthcare, retail, manufacturing, education, agriculture, and logistics to optimize business processes and improve customer experiences. From a management perspective, AI assists organizations in resource allocation, market forecasting, management of the supply chain, and data-driven planning. The incorporation of AI into economic systems has accelerated Digital evolution enhanced global competitiveness. According to studies published by the OECD, AI is capable of improve productivity and long-term Innovation-led economic growth and automation. However, AI implementation also presents managerial Obstacles like workforce displacement, ethical concerns, cybersecurity threats, privacy issues, and skill gaps. This study is based entirely on secondary data collected from academic journals, books, government reports, and publications issued by international organizations. The paper examines the role of Artificial Intelligence in modern economies from a management perspective by analysing its applications, economic contributions, challenges, and future implications. The findings indicate that responsible AI governance, employee reskilling, strategic planning, and ethical management practices are essential for sustainable economic development and organizational success.