Integrating AI-Powered Business Intelligence Frameworks for Competitive Advantage and Agile Management
DOI:
https://doi.org/10.63503/j.ijaimd.2025.178Keywords:
Business Intelligence (BI), Artificial Intelligence (AI), Agile Management, Competitive Advantage, Decision Support Systems, Predictive Analytics, Reinforcement LearningAbstract
The modern business environment, shaped by hypercompetitive and unprecedented market volatility, is no longer suitable for the traditional organizational decision-making approach. Conventional Business Intelligence (BI) systems, which are often very good at performing a historical analysis, cannot be predictive of the future most of the time, and are also not very efficient in handling the complexities of modern business operations. The future holds a lot of promise for the fusion of Artificial Intelligence (AI) and BI systems. This may allow the changing of the whole concept from one of reactive reporting with data support to a more proactive one by means of data-driven strategic management. The development of a systemic process that simultaneously makes the long-term competitive positioning stronger and provides operational agility in the short term remains a prevailing problem. This paper presents a new, combined AI-powered Business Intelligence (AI-BI) model for bridging the gap that has been holding back strategic planning and agile implementation. This relies on a two-model framework: one is an Explainable Predictive Model (EPM), which provides a transparent forecast, and the other is a Dynamic Strategy Model (DSM) designed to deliver an adaptive allocation of resources. The quantitative measurement of these models’ performance under various market conditions is done through a comprehensive simulation of a synthetic business dataset. The results show that the collaborative employment of explainable and dynamic models in one framework gives more possibilities than decision support and strategic insight as well as operational flexibility enhancement. The presented framework will enable organizations to systematically treat data as a dynamic resource, capable of providing them with a sustainable competitive advantage and ensuring that they remain agile in the ever-more-uncertain world.
References
[1] A. Agrawal, J. Gans, and A. Goldfarb, Prediction Machines: The Simple Economics of Artificial Intelligence. Boston, MA: Harvard Business Review Press, 2018.
[2] H. P. Bomma, "Natural Language Processing (NLP) in Business Intelligence," International Journal of Leading Research Publication, vol. 6, no. 1, pp. 1-10, Sep. 2024.
[3] E. Brynjolfsson and A. McAfee, The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies. New York, NY: W. W. Norton & Company, 2014.
[4] S. K. Chebrolu, "AI-powered business intelligence: A systematic literature review on the future of decision-making in enterprises," American Journal of Scholarly Research and Innovation, vol. 4, no. 1, pp. 33-62, 2025. doi: 10.63125/gq69nv41.
[5] H. Chen, R. H. L. Chiang, and V. C. Storey, "Business intelligence and analytics: From big data to big impact," MIS Quarterly, vol. 36, no. 4, pp. 1165-1188, Dec. 2012.
[6] T. H. Davenport and R. Ronanki, "Artificial intelligence for the real world," Harvard Business Review, vol. 96, no. 1, pp. 108-116, Jan.-Feb. 2018.
[7] M. Iansiti and K. R. Lakhani, Competing in the Age of AI: Strategy and Leadership When Algorithms and Networks Run the World. Boston, MA: Harvard Business Review Press, 2020.
[8] M. N. Khan, J. B. Mirza, M. M. Hasan, R. Paul, M. R. Hasan, and A. I. Asha, "AI-Driven Business Intelligence in Retail: Transforming Customer Data into Strategic Decision-Making Tools," American International Journal of Multidisciplinary Research, vol. 11, no. 1, pp. 1-15, 2025.
[9] K. McElheran, J. F. Li, E. Brynjolfsson, Z. Kroff, E. Dinlersoz, L. Foster, and N. Zolas, "AI adoption in America: Who, what, and where," Journal of Economics & Management Strategy, Jan. 2024. doi: 10.1111/jems.12586.
[10] B. Mittelstadt, "Principles alone cannot guarantee ethical AI," Nature Machine Intelligence, vol. 1, no. 11, pp. 501-507, Nov. 2019. doi: 10.1038/s42256-019-0114-4.
[11] F. O. Olatoye, K. F. Awonuga, N. Z. Mhlongo, C. V. Ibeh, O. A. Elufioye, and N. L. Ndubuisi, "AI and ethics in business: A comprehensive review of responsible AI practices and corporate responsibility," International Journal of Science and Research Archive, vol. 11, no. 1, pp. 1433-1443, Feb. 2024. doi: 10.30574/ijsra.2024.11.1.0235.
[12] A. Osman, O. O. Fowowe, R. Agboluaje, and P. O. Orekha, "Integrating machine learning in business analytics consulting for proactive decision-making and innovation," World Journal of Advanced Research and Reviews, vol. 25, no. 1, pp. 1817-1836, Jan. 2025. doi: 10.30574/wjarr.2025.25.1.0251.
[13] S. O. Rasaq, "AI and Intelligent Automation: A New Era of Efficiency in Business Operations," International Journal of Novel Research in Engineering & Pharmaceutical Sciences, vol. 12, no. 2, p. 6, Feb. 2025.
[14] S. Riches, M. Elghany, S. Garety, P. Rus-Calafell, and M. Fornells-Ambrojo, "The use of virtual reality and immersive technologies to support employee wellbeing: a systematic review," Journal of Technology in Behavioral Science, vol. 8, pp. 248-265, 2023. doi: 10.1007/s41347-023-00300-3.
[15] J. W. Ross, C. M. Beath, and M. Mocker, Designed for Digital: How to Architect Your Business for Sustained Success. Cambridge, MA: MIT Press, 2019.
[16] Y. R. Shrestha and S. M. Ben-Menahem, "The grand challenge of bridging reinforcement learning and business strategy," Strategic Management Journal, vol. 40, no. 11, pp. 1779-1804, Nov. 2019. doi: 10.1002/smj.3072.
[17] D. J. Teece, "Business models and dynamic capabilities," Long Range Planning, vol. 51, no. 1, pp. 40-49, Feb. 2018. doi: 10.1016/j.lrp.2017.06.007.
[18] S. Arora, "Transforming AI Decision Support System with Knowledge Graphs & CAG," International Journal on Engineering Artificial Intelligence Management, Decision Support, and Policies, vol. 2, no. 2, pp. 15-23, 2025.