The Impact of Artificial Intelligence on Business Administration

Abstract

This paper explores the transformative integration of Artificial Intelligence (AI) into business administration, particularly within economics and finance. Through an extensive review, the research investigates what impact AI has across core business domains such as human resources, finance, marketing, and logistics, and how AI technologies—automation, data analytics, and machine learning—redefine traditional administrative practices. The study identifies AI’s role in optimizing routine operations, enhancing cost-efficiency, and improving customer experiences by leveraging large datasets for actionable insights. The research delves into why these impacts are significant by examining AI-driven enhancements in human resources (recruitment, talent management, and engagement), finance (predictive analytics, risk management, and fraud detection), marketing (personalization and predictive engagement), and logistics (route optimization, demand forecasting, and inventory management). This analysis provides insights into how AI-driven efficiencies and innovative strategies contribute to strategic decision-making and organizational competitiveness. Addressing why AI integration also presents challenges, the study highlights ethical concerns like job displacement, algorithmic bias, and data privacy, urging responsible AI practices that uphold transparency, fairness, and accountability. The research underscores the necessity for AI education, ethical frameworks, and ongoing innovation to harness AI’s potential while mitigating associated risks fully. In conclusion, this paper emphasizes that the future of business administration will likely involve a synergistic approach, where AI complements human intelligence. The findings suggest that AI holds vast potential for shaping sustainable business models, advanced decision-making, and enhanced economic practices, ultimately contributing to an AI-enabled future in business administration.