Ursakiі Yuliіa, PhD (Economics), Associate Professor of the Department of Management, Marketing and Logistics Chernivtsi Institute of Trade and Economics of SUTE, Chernivtsi, Ukraine

ORCID: 0000-0002-7793-7761
e-mail: julja-ursakijj@ukr.net

The Impact of Artificial Intelligence on Business: Opportunities, Challenges and Prospects

Abstract. Introduction. The rapid expansion of artificial intelligence technologies determines the high relevance of their application in modern business, as organizations operate in conditions of growing competition, digitalization, and constant environmental change. The increasing complexity of managerial tasks and the need for faster and more accurate decision-making require the search for innovative tools capable of improving operational efficiency and strategic flexibility.

Purpose. The purpose of this article is to analyze the impact of artificial intelligence on business management and to identify its potential advantages, limitations, and conditions for effective implementation in organizational activities.

The research methodology is based on analytical, comparative, and system-based approaches, which enable a comprehensive examination of artificial intelligence as a management tool and allow the identification of key functional areas influenced by its application. Generalization and logical analysis are used to assess the role of artificial intelligence in optimizing business processes and supporting managerial decisions.

Results. The results of the study indicate that artificial intelligence significantly enhances business performance by automating routine operations, accelerating data processing, improving customer interaction, and supporting more informed managerial decisions. At the same time, the findings reveal that the effectiveness of artificial intelligence depends on organizational readiness, data quality, infrastructure compatibility, and the balance between automated systems and human involvement. The analysis also shows that unregulated or poorly planned implementation of artificial intelligence may generate technological, ethical, and workforce-related challenges that reduce its overall effectiveness.

Conclusions. The practical value of the article lies in the formulation of applied conclusions that can be used by business managers, analysts, and decision-makers when designing artificial intelligence integration strategies. The presented results provide guidance for the responsible and efficient use of artificial intelligence in business practice, contributing to sustainable development, improved competitiveness, and long-term organizational performance.

Keywords: artificial intelligence; business; automation; efficiency; ethics; digital transformation; ethical challenges; data security; productivity; innovation; process optimization.

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