Artificial Intelligence and Management Tools

Authors

  • Damijan Kreslin DO Invest d.o.o.
  • Franci Pušavec Faculty of Mechanical Engineering, Ljubljana
  • Mirko Markič Univerza na Primorskem, Fakulteta za management

DOI:

https://doi.org/10.37886/

Keywords:

artificial intelligence, management tools, managerial judgment, dynamic capabilities, firm performance, data intensity, digital transformation, management

Abstract

Research Question (RQ):What is the relationship between artificial intelligence and management tools, and does artificial intelligence primarily function as a substitute for or a complement to management tools and managerial judgment?

Purpose:The purpose of the study was to examine the impact of artificial intelligence on management tools and to develop a conceptual model linking management tools, managerial judgment, dynamic capabilities, and firm performance.

Method:The research is based on a structured literature review covering management, management tools, artificial intelligence, and dynamic capabilities. Scientific articles, monographs, institutional reports, and previous empirical findings on management tools and business performance were analyzed. A conceptual model was developed through comparative analysis and theoretical synthesis.

Results:The study introduces the concept of management tool data intensity as a key determinant of AI support and substitution potential. A new taxonomy of management tools was developed based on data intensity, managerial judgment requirements, and expected AI impact. The proposed conceptual model suggests that management tools and artificial intelligence influence firm performance indirectly through managerial judgment and dynamic capabilities.

Organization:The findings help managers identify areas where artificial intelligence can effectively support decision-making and areas where managerial judgment remains essential for organizational success.

Society:The study contributes to a better understanding of responsible, transparent, and human-centered artificial intelligence adoption in organizations while emphasizing the continued importance of human judgment in strategic decision-making.

Originality:The originality of the study lies in the introduction of the concept of management tool data intensity, the development of a novel taxonomy of management tools, and the integration of management tools, artificial intelligence, managerial judgment, and dynamic capabilities into a unified conceptual framework.

Limitations/Future Research:The study is conceptual in nature and does not include empirical validation of the proposed model. Future research should empirically test the proposed relationships among artificial intelligence, managerial judgment, dynamic capabilities, and firm performance using SEM or PLS-SEM methodologies.

References

1. Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108

2. Berente, N., Gu, B., Recker, J., & Santhanam, R. (2021). Managing artificial intelligence. MIS Quarterly, 45(3), 1433–1450. https://doi.org/10.25300/MISQ/2021/16274

3. Brynjolfsson, E., Li, D., & Raymond, L. R. (2025). Generative AI at work. The Quarterly Journal of Economics, 140(2), 889–942. https://doi.org/10.1093/qje/qjae044

4. Chen, Y., Kirshner, S. N., Ovchinnikov, A., Andiappan, M., & Jenkin, T. (2025). A manager and an AI walk into a bar: Does ChatGPT make biased decisions like we do? Manufacturing & Service Operations Management, 27(2), 354–368. https://doi.org/10.1287/msom.2023.0279

5. Davenport, T. H., & Mittal, N. (2022). All-in on AI: How smart companies win big with artificial intelligence. Harvard Business Review Press.

6. Dell'Acqua, F., McFowland, E., Mollick, E., Lifshitz-Assaf, H., Kellogg, K., Rajendran, S., Krayer, L., Candelon, F., & Lakhani, K. (2023). Navigating the jagged technological frontier: Field experimental evidence of the effects of AI on knowledge worker productivity and quality (Harvard Business School Working Paper No. 24-013). Harvard Business School. https://www.hbs.edu/faculty/Pages/item.aspx?num=64700

7. Doshi, A. R., Bell, J. J., Mirzayev, E., & Vanneste, B. S. (2025). Generative artificial intelligence and evaluating strategic decisions. Strategic Management Journal, 46(3), 583–610. https://doi.org/10.1002/smj.3677

8. Drucker, P. F. (2001). The essential Drucker. Harper Business.

9. Dwivedi, Y. K., Kshetri, N., Hughes, L., Slade, E. L., Jeyaraj, A., Kar, A. K., Baabdullah, A. M., Koohang, A., Raghavan, V., Ahuja, M., Albanna, H., Albashrawi, M., Al-Busaidi, K. A., Balakrishnan, J., Barlette, Y., Basu, S., Bose, I., Brooks, L., Buhalis, D., ... Wright, R. (2023). So what if ChatGPT wrote it? Multidisciplinary perspectives on opportunities, challenges and implications of generative conversational AI for research, practice and policy. International Journal of Information Management, 71, 102642. https://doi.org/10.1016/j.ijinfomgt.2023.102642

10. Faraj, S., Pachidi, S., & Sayegh, K. (2018). Working and organizing in the age of the learning algorithm. Information and Organization, 28(1), 62–70. https://doi.org/10.1016/j.infoandorg.2018.02.005

11. Gernone, F., & Teece, D. J. (2024). Competing in the age of AI: Firm capabilities and antitrust considerations. In A. M. Abbott & T. Schrepel (Eds.), Artificial Intelligence and Competition Policy (pp. 17–34). Concurrences.

12. Grant, R. M. (1991). The resource-based theory of competitive advantage: Implications for strategy formulation. California Management Review, 33(3), 114–135. https://doi.org/10.2307/41166664

13. Huang, M.-H., & Rust, R. T. (2021). A strategic framework for artificial intelligence in marketing. Journal of the Academy of Marketing Science, 49(1), 30–50. https://doi.org/10.1007/s11747-020-00749-9

14. Jarrahi, M. H., Lutz, C., Boyd, K., Oesterlund, C., & Willis, M. (2023). Artificial intelligence in the work context. Journal of the Association for Information Science and Technology, 74(3), 303–310. https://doi.org/10.1002/asi.24730

15. Kreslin, D., Bojnec, Š., Markič, M., & Janeš, A. (2024). Empirical model of management tools impact on the enterprise performance. International Journal of Business and Systems Research, 18(1), 85–110. https://doi.org/10.1504/IJBSR.2024.135780

16. Kreslin, D., & Markič, M. (2019). Model uporabe orodij menedžmenta. Revija za univerzalno odličnost, 8(2), 110–130.

17. Kuzmanko, J., & Vrbová, L. (2025). AI vs humans in strategic decision-making: A systematic review. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.5144866

18. Li, H., & Tian, F. (2026). Advancing decision-making through AI-human collaboration: A systematic review and conceptual framework. Group Decision and Negotiation, 35, Article 26. https://doi.org/10.1007/s10726-026-09980-1

19. López-Solís, O., Luzuriaga-Jaramillo, A., Bedoya-Jara, M., Naranjo-Santamaría, J., Bonilla-Jurado, D., & Acosta-Vargas, P. (2025). Effect of generative artificial intelligence on strategic decision-making in entrepreneurial business initiatives: A systematic literature review. Administrative Sciences, 15(2), 66. https://doi.org/10.3390/admsci15020066

20. McKinsey & Company. (2025). The state of AI: How organizations are rewiring to capture value. https://www.mckinsey.com/capabilities/quantumblack/our-insights/the-state-of-ai

21. Mikalef, P., Gupta, M., Pappas, I. O., & Krogstie, J. (2021). Artificial intelligence capability: Conceptualization, measurement calibration, and empirical study on its impact on organizational creativity and firm performance. Information & Management, 58(3), 103434. https://doi.org/10.1016/j.im.2021.103434

22. Mintzberg, H. (1973). The nature of managerial work. Harper & Row.

23. Mollick, E. (2024). Co-intelligence: Living and working with AI. Portfolio.

24. Nedelko, Z., Potočan, V., & Dabić, M. (2015). Current and future use of management tools. E+M Ekonomie a Management, 18(1), 28–45. https://doi.org/10.15240/tul/001/2015-1-003

25. OECD. (2025). Governing with artificial intelligence: The state of play and way forward in core government functions. OECD Publishing. https://doi.org/10.1787/795de142-en

26. Raisch, S., & Krakowski, S. (2021). Artificial intelligence and management: The automation–augmentation paradox. Academy of Management Review, 46(1), 192–210. https://doi:10.5465/amr.2018.0072

27. Rigby, D. K., & Bilodeau, B. (2023). Management tools & trends 2023. Bain & Company. https://www.bain.com/insights/management-tools-and-trends-2023/

28. Rydzewski, R. (2025). The potential of artificial intelligence adoption for managerial decision making: A rapid literature review. Managerial Economics, 26(1), 77–88. https://doi.org/10.7494/manage.2025.26.1.77

29. Shrestha, Y. R., Ben-Menahem, S. M., & von Krogh, G. (2019). Organizational decision-making structures in the age of artificial intelligence. California Management Review, 61(4), 66–83. https://doi.org/10.1177/0008125619862257

30. Simon, H. A. (1977). The new science of management decision (Rev. ed.). Prentice Hall.

31. Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z

32. Wamba, S. F., Queiroz, M. M., Pappas, I. O., & Sullivan, Y. (2024). Artificial intelligence capability and firm performance: A sustainable development perspective by the mediating role of data-driven culture. Information Systems Frontiers, 26(6), 2189–2208. https://doi.org/10.1007/s10796-023-10460-z

Published

2026-08-18

Issue

Section

Original Scientific Paper

How to Cite

Artificial Intelligence and Management Tools. (2026). Journal of Universal Excellence, 15(3), 185-204. https://doi.org/10.37886/

Most read articles by the same author(s)

1 2 3 > >>