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05 The Future of Business Administration Integrating AI Technologies

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The Future of Business Administration: Integrating AI Technologies

Article in World Research of Business Administration Journal · March 2025


DOI: 10.56830/WRBA03202505

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World Research of Business Administration Journal
Vol. 5, No. 1, March 2025

The Future of Business Administration: Integrating AI Technologies


https://www.doi.org/10.56830/WRBA03202505

Petya Ivanova
Dimitar A. Tsenov Academy of Economics, Svishtov, Bulgaria

[email protected]

Mahmoud Khalifa
College of Administrative Sciences, Applied Science University, Bahrain

Abstract
The integration of artificial intelligence (AI) across various business sectors presents significant
opportunities to enhance efficiency and profitability. AI excels in data processing, offering profound
insights that can reshape marketing, management, sales, and operations. However, small to medium-
sized enterprises often lag behind larger organizations in leveraging these advantages, particularly in
sectors reliant on consumer data. By automating routine tasks, AI frees human resources to focus on
strategic thinking and creativity, improving customer relationship management (CRM) and fostering
sustained customer engagement. Despite these benefits, the successful adoption of AI involves
navigating complexities, including algorithmic challenges and organizational transformations that
affect established routines and job roles. Digital leadership plays a pivotal role in guiding these
transitions as organizations craft adaptive strategies to harness AI's potential. Looking ahead, the
landscape of business administration is set to evolve further, with machine learning and other
emerging technologies reshaping operational frameworks. Nonetheless, the rapid adoption of AI also
necessitates reskilling, as traditional job roles may change or become obsolete. A thoughtful approach
to AI integration must consider ethical implications and strategic planning to ensure that businesses
can thrive in an increasingly technology-driven environment.

Keywords: Artificial intelligence, Business Technology, Business Strategy

1. Introduction
Artificial Intelligence (AI) is becoming increasingly more relevant in reshaping the everyday
business practices that companies have traditionally gone through with. The global reach of
technology has specifically begun generating massive amounts of information that have come as a
result of AI, much more so than humans could have made. It is in the best interest of business looking
to provide an extra competitive edge to act upon this phenomenon. Those who do stand to reap
benefits far and above what the cost should be, the most drastic portion of remaking traditional
business (Soni, Khular Sharma, Singh, & Kapoor, 2019).

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Integrating AI into all sectors of business such as marketing, management, sales and operations
is most largely beneficial and bottom-line increasing. It has been scientifically proven that the best
sort of marketing strategies are those where conclusions are drawn from mountains of demographic
data. AI, as it turns out, is particularly good at processing data and drawing complex data-driven
conclusions. Inventory management is another sector that has its operations efficiency drastically
improved by the integration of AI systems (Jones, 2018).

The objective of this article is to provide as detailed a breakdown as is possible regarding the
integration of AI technologies with classical business administration. The scope was initially intended
to cover all realistic real-world applications of AI in conjunction with business, but this ended up
being far too large. Thus, the various implementations are broken into groups, these being marketing,
management, and sales and operations. This article then aims to compare the changes to classical
company structure that come with the implementation of all these AI systems, advantages and
disadvantages of these systems, and a broad overview of the application thereof. Hi-tech companies
that market in a more intangible space, such as tech firms are going to find the most use of AI
implementation. Meanwhile, companies selling more physical goods or services would likely benefit
less. Small to medium-sized enterprises will not have access to AI’s advantages to the same extent as
large businesses and those that use consumer data in their operations will also see diminished
benefits.

2. Understanding Artificial Intelligence


Artificial Intelligence (AI) refers to the simulation of human intelligence processes by
machines, especially computer systems. These processes include learning (the acquisition of
information and rules for using the information), reasoning (using rules to reach approximate or
definite conclusions), and self-correction. Various components comprise AI, such as chatbots,
machine learning, NLP (natural language processing), and neural networks. Machine learning relies
on algorithms that work in conjunction; it includes clustering, dimensionality reduction, neural
networks, and regression. (Siemens, et al., 2022).

The distinction between narrow AI and general AI is vital; narrow AI is pervasive in the world,
while general AI is concerned with achieving AI with problem-solving and reasoning abilities equal
to humans, including a simulation of personality and feelings. Since the inception of computers,
people have sought to imbue them with some types of intelligent behavior. Broadly, AI is any system
that emulates some function mirrored by people respecting intelligence. This means perceptive
behavior, such as perceiving vision, language, audio, and understanding (meaning NLP), generation
of text or music, and automatic speech. But it also includes logic (getting into logical conclusions
attached to sets of facts), coordination (playing against humans and not being distinguishable as
such), and complex planning in face of a plethora of information and parameters. All of this is
achieved by algorithms (Jones, 2018). The learning paradigm is responsible for the kind of algorithms
which help perform better on a task in relation to an increase in experience (data). This recognition
comes in different shapes and sizes, like supervised, unsupervised, and, finally, reinforcement
learning. At its core, this means developing predictive or classification models based on large

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quantities of data, the larger the dataset, the better the performance of the model. It is of note that a lot
of these datasets are “big,” thus difficult to efficiently process by standard computer (Soni, Khular
Sharma, Singh, & Kapoor, 2019). The model is not a ready solution. Beyond training, it can generate
new data based on what it was trained. This characteristic opens new fields of creation, for instance,
deep fake content (video, audio, text). This is important as it exposes further downstream
misinformation and changes in political and commercial understanding. At the same time, the
business environment continuously changes, becoming ever too complex to adapt, learn, and thrive
(saying nothing about the climate emergencies worldwide, migration disruptions, or the looming
threat of the knowledge economy breaking the social tissue first world countries are based on).
Furthermore, the ability to easily change professional paths is vanishing due to the macro trend
caused by tech advancement (robotization, parametrized machine learning).

3. AI Technologies in Business Operations


Artificial Intelligence (AI) technologies have taken the business world by storm, with business
operations frequently experiencing significant changes as a result of their adoption. On a daily basis,
new innovations within this field are being released and tested by businesses of all sizes. Below is an
exploration of just some of the AI technologies revolutionizing business operations, spanning a range
of different sectors. Specific areas of business impact are looked at in terms of what tasks are
automated, more detailed data analysis, effect on decision-making processes, and customer
interaction. Together, these technologies are transforming business operations across the board.
(George & George, 2023)

Efficiency in Everyday Tasks One of the biggest areas in which AI stands to make a significant
impact on businesses is the automation of routine tasks. These are things that are necessary to keep a
business running effectively, but are often mundane, time-consuming, and frequently repetitive. AI is
incredibly good at these things, with highly programmable machines not prone to error in the same
way as humans are. This often frees up human employees to engage in a much higher level of
thinking and tasks that are more profitable overall (Jones, 2018). The primary technologies behind
automation have already demonstrated the ability for up to a third of tasks to be automated in about
60% of all jobs. Some other estimates have put the number of jobs that can be made up entirely of
automation at closer to half.

At the same time, AI-powered systems are being implemented across a full spectrum of
business tasks. These include automating repetitive tasks, improving efficiency by automating data
wrangling, and developing analytics systems to help departments other than IT make better-informed
decisions. (Aldoseri, A.; Al-Khalifa, K. N.; Hamouda, A. M., 2024).

3.1. Automation of Routine Tasks


Many simple, boring or repetitive tasks have already been automated. Automation relies on
certain inputs, which can be used as a foundation for its utilization. For example, according to simple
sets of rules, processes can be defined and run by software, thereby drastically increasing the
efficiency. Onboarding of new customers is a good example of that. Before, the task was completely
manual, requiring a special team to manually check every applicant. Checks were performed against
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tax databases, criminal records, blacklists and other sources. A high hourly rate was incurred, and
sometimes the job couldn't even be done properly. (Gradim & Teixeira, 2022).

Nowadays, rules are implemented into a system, hence only in “exceptions”, a manual
investigation is made. If everything is OK, the case is sent to the authorities for approval. This task,
which previously required employing many people, now only consumes a fraction of the time of one
person on the respective lowest salary (Tredinnick, 2016). What is more, in the current setup, checks
were not done at all times, meaning slower registration of customers. But is such a savings in costs
good for the overall economy? For individuals losing their jobs, such savings generate very little. The
question of what can be done with the surplus labour arises. Training sounds like a valid idea, maybe
society needs more programmers or engineers? But what if the tasks taken by these people have also
been automated. Should they be retrained to become artists, bakers or tailors? Unfortunately, this
approach is contradictory from the business perspective. Actions undertaken need to have a
justification related to business-related benefits.

3.2. Data Analysis and Decision Making


Artificial intelligence (AI) tools offer a range of possible implementations that can accelerate
business processes, communications and growth in general. Data analysis is a fundamental discipline
of this that can be enhanced by these tools. The ability to sift, cross-reference, compare, structure and
present data in a coherent and orderly fashion to derive actionable insights has long been seen as
integral to the operation of a successful business. On top of the normal business data necessary,
enormous amounts of data on customer or client behaviour, internal problems, personnel efficiency
etc. may be generated and stored nowadays. AI can sift through and alert companies simply by
applying machine-learning algorithms and predictive modelling to the right questions in the right way
(Kerzel, 2020). A further possibility are ongoing decisions that are actually supported or executed
automatically due to the upload of sensor data and processing in the cloud. (Svetlana, Anna, Svetlana,
Tatiana, & Olga, 2022).

There are various other similar applications and fields one can think of. In this segment,
attention will be focused on how these AI-powered data analysis models generate business
recommendations and how these can be further exploited. The time-to-actuality of data-driven
recommendations is highlighted as well as the high precision on the follow-up implementation of a
business strategy. AI in data analytics may clarify trends, problems and cases which otherwise would
have gone unnoticed or developed to full-scale problems within some time. This also allows
responses by the businesses that are efficient and directed instead of wading through a sea of data. It
also becomes an essential keystone of a larger optimization approach which may look beyond just a
fixed company, for instance to placement or resources or to expand the business. Such profound
decisions based on data, though, are of course tied closely to the quality and governance of the said
data. Increasing the quality and scope of the data available for analysis and maintaining an oversight
throughout the recommendations of the model are key to reap the benefits maximally and prevent
costly bad decisions. (Majeed & Hwang, 2021).

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Further, the ethical aspects of the data, their use, when and why can also quickly become
problematic. What should not be used in the model, how to still protect some critical data or decision-
making from the modelled behaviour are at the same time a design and also follow-up consideration.
(Nesterov, 2023).

3.3. Customer Relationship Management


Customer relationship management (CRM) plays a crucial part in any business endeavor.
Every business revolves around customers, and there is no business without a customer. Modern-day
customers are more informed and are conscious of their requirements. AI in CRM has transformed
businesses and customer engagement between them. By utilizing the data gathered through AI tools,
businesses can examine them to generate useful market insights and trends on products or services
that individuals are interested in (Varghese, Raj, & Venkatesh, 2022). Businesses can subsequently
use these insights, based on the type of the customer's interest, when targeting advertising and
marketing practices.

Businesses can utilize this understanding to approach clients more individually and cater to
their requirements on a personal level, ultimately granting them an extra sense of significance when
giving them what they require. By closely monitoring internet browsing behavior and determining the
intent behind each search, businesses can observe situations that require some anticipatory action to
be taken. When there is some immediate need that the client cannot articulate or recognize, precise
and targeted advertising can be a powerful way of delivering what is required without prior
explanation and shedding light on the matter. (Kittel & Seufert, 2023).

Individuals become more open to brands and come back for more if the business effectively
supports the customer’s problems, which creates a long-lasting relationship and implies loyalty. Each
business constantly endeavors to trim down customers and enhance its customer base. It is a well-
established fact that it is much simpler (and cheaper) to keep current customers than it is to acquire
new ones. There is abundant proof that businesses can produce examples of happy, recurring
customers by using artificial intelligence to increase customer service and CRM. For this reason,
chatbots and virtual assistants are considered very well-liked resources for customer engagement.
They are always instantly available and have no pauses, making the whole customer satisfaction
journey pleasant on multiple occasions in comparison to speaking with a real human character. (Rane,
Choudhary, & Rane, 2024)

4. Impact of AI on Business Strategy


The integration of AI systems in business processes impacts and reshapes the context of
businesses. It is necessary for the businesses to mold their strategic planning aligned to advancements
in the adoption of AI system technologies in modern enterprises. Businesses began to understand the
innovative potential of artificial intelligence. A gradual shift in the focus of technology occurred,
moving from implementing systems populated with data to next-generation adaptive and predictive
analytics systems. The predictive capability of predictive analytics systems has a significant impact
on business predictions and the decision-making process. Business planning takes a lot of effort to
predict future outcomes based on past performance. Predictive analytics systems enable decision-
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makers to base future predictions on observed historical data patterns. Market analysis is of market-
oriented intelligence that provides a competitive advantage. In the innovative economy, companies
are increasingly looking for information to better understand their market and deliver more nimbly to
the behaviors of the customer and competitor (Soni, Khular Sharma, Singh, & Kapoor, 2019). AI-
driven systems help in better adapting to the market trends of businesses. Business success depends
on their ability to identify competitive threats and opportunities on time. AI technologies combine
massive data with intelligent algorithms to promptly deliver strategic and commercial advantages. AI
in business enables better decision-making capabilities, enriching output on predictions, forecasts,
market insights. In practice, the implementation of AI systems goes far beyond mechanizing those
existing processes. The emergence of AI enhances strategic differentiation in competitive markets.
The more crowded the market, the more difficult it is to stand out among other competitors. As the
market changes, so do the business and business processes. The AI-enabled system alarms businesses
in a timely way about the potential dangers and opportunities so that the company can respond
properly. (Aldoseri, Al-Khalifa, & Hamouda, 2023).

However, as technology always evolves, businesses too are constantly obliged to learn and
adapt from that continuous evolution of artificial intelligence beyond obvious changes. The AI-driven
business context evolves to shape companies to maintain the right strategies and the correct course of
action. As a result, the actual needs in strategic planning shapes the company under the intense
adoption of AI technologies. Without swift adaptation, outdated strategies would render companies
vulnerable to a wide spectrum of challenges. In conclusion, changes within AI capabilities have
profound implications for the expanded adaptation of AI in the entire business context. The need for
reshaping the strategic framework adapts to the transformed business context of enterprises under
intensive integration of AI technologies. The amendments make it possible for business planners to
take the correct advance action in a rapidly changing environment through unforeseen developments.
(Farrow, 2021).

4.1. Strategic Planning and Forecasting


One of the most attractive powers of AI technologies to businesses is its capability to analyze
historical data to reveal trends, patterns and opportunities beyond human capability with the aim to
furnish informed intending or implemented conclusions (Soni, Khular Sharma, Singh, & Kapoor,
2019). Therefore, with the assistance of AI, the businesses can not only increase the precision of their
predictions in numerous pursuits but also decrease the tentativeness of investing orders and preferring
positions or policies (Adya & Collopy, 1995). Despite the continual appeal of AI in market
forecasting and resource allocation in secondary fields, the reasonable use of artificial intelligence has
been found in strategic endeavors' long-term planning including investment evaluations and scenario
analyses. Business is beginning to think strategically on how best to leverage AI technologies for
competitive advantage, using techniques such as scenario planning to consider more carefully
possible future events and how they can be influenced. These same firms are also calculating AI-
driven insights to better inform investment decisions. In so doing, businesses hope to obtain
reinforcements that will enable them to articulate better-intended strategies in anticipation of
expected market shifts. The paper reports on the results of one such analysis, which finds that

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businesses that take a proactive approach to adapting their strategies in response to an understanding
of an evolving marketplace are better positioned to be able to make competitive. These results, both
quantitatively and qualitatively, underscore AI’s potential to empower businesses to avail better-
informed strategic decisions. Nonetheless, there are astute cautions regarding the use of AI techniques
to assure that wise and credible presuppositions underlie the data-driven models and conclusions they
engender.

4.2. Market Analysis and Competitive Advantage


The implementation of AI as a marketing intelligence framework raises the necessity for further
research on the aspects of its generation and implementation within a business setting (Soni, Khular
Sharma, Singh, & Kapoor, 2019). Therefore, the paper presents a thorough study of AI implications
for competitive market intelligence deployment, addressing its potential innovative role in the TMT
sector. By offering a systematic examination of AI intelligence deployment in market analytics and
the insights it generates, it identifies potent directions for future implementation deployment.

Following the demand of this business performance gap estimation, the most salient directions
are demonstrated, in which AI can function as an efficient market intelligence mechanism. This
research contends that, by integrating numerous AI tools, business firms can significantly enhance
their capacity to conduct market analysis and intelligence, which is central to gaining a competitive
advantage. It further argues that the insights yielded by AI market intelligence can empower firms to
be more reactive and form more informed business strategies, thus outmatching their competitors.
(Ismaeel, Alkhawaldeh, & Alafi, 2023).

Innovative endeavors to build an exhaustive and methodological arrangement of tools and


techniques in AI advertising platforms uncovered blockchain as a novel complex innovation that
could weigh in the mediatic sector. Numerous practicability perceptions are projected concerning AI
market intelligence implementation. Above all, these findings underline the strategic importance of
market analysis based on cutting-edge technologies and real-time data that, on one hand, empower
companies to embrace profitable market trends and consumer behaviors at the early stage or their
appearance. In order to enhance the agility of marketing strategies by promptly adaptation to the
dynamically transforming market. (Wang, Li, Lu, & Cheng, 2022).

5. Challenges of Integrating AI in Business


Special challenges that companies are confronted with in the development of artificial
intelligence (AI) are algorithmic and arising from its application - operationalizing AI algorithms.
Data that fits the algorithms available, that could be acquired in a feasible way and is connected to a
decision, is often difficult to obtain. Furthermore, algorithms can sometimes not be aligned with
processes, not be reliable or too complex to apply. Applications of AI often have to deal with the
challenge of explaining an AI based decision to a business user or a client. There might even be legal
constraints why applications result from AI are inapplicable. (Nitzberg & Zysman, 2022).

When it comes to integrating AI into business processes, also challenges emerge from a usage
as well as from an organization perspective. From a usage perspective, AI models often provide

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predictions or suggestions which humans either do not understand, trust or like. From an organization
perspective, integrating AI usually requires a transformation of the respective organization that may
not be feasible in the first place and especially it has to be integrated into a predominantly human
workforce. If new AI based systems support or replace human based decisions at a large scale, side
effects can be expected that are difficult to anticipate.

To begin with some easily understandable examples: One of the oldest, and still unsolved,
application challenges in marketing automation relates to the famous trolley dilemma - what should a
self-driving car do when only a fatal accident can be avoided? A more forward looking example in the
legal domain is whether a judgment that was made with AI support can be upheld in a court of law.
And the organizational, generally less technical, challenge perhaps exemplified by a rather abstract
question how to prevent that business experts demand that AI models provide steady (and business
suboptimal) predictions. (Jia & Ding, 2024).

5.1. Ethical Considerations


There are a number of ethical considerations to assessing AI tools in businesses. Internal ethics
officials and AI advocates will want to ask questions about how fair, equitable, and transparent the
algorithms are. If no one can see what datapoints are weighted with what value then there is no way
to tell what criteria are used to make a decision. Similar to this is a concern about what biases are
implicit and explicitly programmed in these algorithms. Arguments are being made that say AI will
always be more impartial and objective than a human since it deals with hard data and not gut
feelings therefore it is unfair to criticize AI for being bias (Giralt Hernández, 2024). The strength here
is that it is very possible to fatalistically limit the interpretation of data through any AI, and due to the
‘black box’ nature of AI, those who design and deploy AI might not be able to see exactly how the AI
acted in a certain situation. Without that knowledge it is impossible to test and improve the AI. A
downside is that AI can uncover biases in data interpretation that humans are incapable of, so to call a
certain case of interpretation bad or under-informed is unfair.

Existing guidelines and those developed in the future must protect the fair play of the
competition while working hard to mitigate any potential abuse. Regarding the fear of mass job
displacement caused by the integration of AI tools, it is true that as certain positions could be made
obsolete, new and more highly skilled ones would emerge. That being said, investing into or
partnering with AI might prove beneficial for the majority rather than the few. As such, wider public
trust and acceptance needs to be established. This includes proper honesty and disclosure from
businesses, as well as subsequent action and policy to allay common concerns. (Foffano,
Scantamburlo, & Cortés, 2023)

5.2. Data Privacy and Security


AI relies on vast amounts of data for training and output, and the associated risks are a critical
issue for its further integration. Any AI model is as secure as its data, while the broad use of data
remarkably amplifies the privacy threats (Radanliev, Santos, Brandon-Jones, & Joinson, 2024).
Increasing concern is arising that AI models are vulnerable to data breaches, eventually leading to

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cyber-attacks, often invisible and indistinguishable from mere errors. When developing or buying an
AI solution, providers need robust security measures in place to embrace their sensitive information.

Organizations working with AI may benefit from taking into account possible impacts and
mitigation of privacy and security threats, especially considering the swelling legal and regulatory
environment of AI governance (Korobenko, Nikiforova, & Sharma, 2024). Being innovative with AI
technologies and data implies a continuous assessment and improvement to comply with the
applicable law. A network of legal advisors might be set aside to support leaders in keeping the pace
with extra-national legal frameworks. The culture of security shall be fostered, encouraging
employees to become informed of AI technologies and how their use and development may affect
personal, social, and economic relations. Ethical and responsible practices will fortify the trust of
stakeholders and establish resilient AI.

Enlarged usage of AI across sectors entails the need to better understand the related choice-
making models to deal with concern towards liable AI deployments. A wish to fill this gap is guided
by (a) examining complaints that have their base in considered risks; and (b) surveying the choice-
making approaches that explain engagement with AI governance initiatives. It is thought that this
study could give practical knowledge to decisions of mid-career managers toward AI governance and
improve procedures designed to apprehend risks associated with private AI use. (Rai, Nanjundan, &
George, 2024).

5.3. Resistance to Change


A successful AI adoption relies on complex change endeavours that affect organizational
routines, work methods, behavior patterns, job roles, organizational structures, and unintended
consequences. A common feature of AI projects is the resistance to change, often met at different
organizational echelons. Resistance originates from skepticism, misunderstanding, rejection,
psychological safety concerns, and the feeling of asset losses. Resistance to AI largely occurs due to
reasons such as tech skepticism, fear of job loss, concern about bias and misuse, and failure to
comprehend its potential benefits. Collaboration between human and intelligent technologies, instead
of independent operation, enables a better understanding of the variety of object types, concepts, and
attributes that describe them. Industry 4.0 digitally aligns all the value chain networks, extending the
lines of communication and coordination among participants in manufacturing and logistics
processes. Moreover, in real-time during the production and logistics phase, an AI-based decision-
making system is supported. Hence, machine learning models can be trained on large datasets to find
the best insights and the right decisions. (Engel, Ebel, & van Giffen, 2021)

Digital leadership is a novel perspective on leadership theory where CEOs and professionals are
either part of top management or digital influencers, crafting and managing digital strategies that are
embraced by the majority. The role of convergence between the new generation of digital leaders and
human-machine collaboration is developed through an explorative theoretical framework. The core
message relies on the idea that in digital ecosystems of intelligent technologies it is of utter
importance to have powerful professionals able to drive the desired modulation. A number of
managerial suggestions are provided. Combined with the increasing pace of market and tech changes,

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a kaleidoscopic landscape of digital materials is crafted. A single direction take-over is obsolete, and a
multi-degree operability of digital strategies becomes primordial. Moreover, digital strategies lead to
an unprecedented behavioral change of how humans live and work in conjunction with digital
machines. Most notably, however, is the emergence of the latest generation of digital leaders that
skillfully manage and spearhead the collinear crafts of digital strategies. This new generation of
digital leaders orchestrates the comprehensive shapes of digital strategies crafting a convergent
engagement effort between the barriers that delineate human professionals from a broad spectrum of
machines that can comprehend, learn, and interact with the environment. (Erhan, Uzunbacak, &
Aydin, 2022)

6. Future Trends in AI and Business Administration


Artificial intelligence (AI) is advancing at a rapid pace, with its integration into various sectors
expected to have a drastic impact on business processes ((Soni, Khular Sharma, Singh, & Kapoor,
2019). As AI is a broad field, there are various forms of this technology currently deployed within
business contexts. AI and advanced algorithms are beginning to provide strategic advice, conduct
communications and provide personalised intelligence. As the scope of applications evolves, it
becomes crucial to understand the array of potential business implications of the adoption of the latest
AI-driven technologies. This field proceeds on the basis of text-based resources, time-consuming
qualitative analysis, and the establishment of cause-effect links. Consequently, computational text
analysis is utilised and a built software toolbox. By using it, trends in business applications of AI are
extracted from large text data very quickly, which facilitates a consistent and systematic analysis. The
wider business context is reshaped and impacted by the adoption of AI-driven systems. Three
business contexts are identified as majorly affected due to the adoption of AI-driven systems. This
consists of a high-level analysis of a much larger data set. Inferences obtained from the analysis
facilitate a better understanding of the innovations, the actual current degree of integration,
application and the impact of AI in businesses. The findings are classified into 22 research categories
and six time slots, providing a comprehensive overlook of trends and developments. The "Hype
Cycle" approach is also employed to further analyse and understand the adoption and effect of such
trends.

First, the AI journey and its influence on all industries and sectors across the globe is described.
The growth of AI and readiness is obliquely interactive with three large factors of impact around the
globe, also uncovered. Such an exploration on the broadest dataset was furnished so far,
encompassing the multidisciplinary perspectives of AI of over 25,000 references. Second, a subset of
this research is devoted to the business context. Five of the most pertinent and fresh investigations in
AI and business fields are summarised and aggregated into five scopes: Forecasting, Foresight and
Design with AI, AI and Business Model Anticipation, Adoption and Exploitation of AI in Business,
AI Behaviors in the Business Context and Future Shifts in Business Models by AI. About basic
approaches to identifying the need for innovative fields and strategies for the issues resulting from
such research is included. (Alabdulatif, 2024).

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6.1. Predictive Analytics


As businesses amass increasing amount of data they are applying artificial intelligence
strategies, such as predictive analytics, to make better choices, improve processes, and gain an
advantage over competitors. Predictive analytics is a subset of advanced analytics, alongside data
mining, statistics, and machine learning, that focuses on the data and is used to make predictions
about the future. Methods are utilized from a variety of disciplines to improve predictions and operate
on big data to find patterns, or generate future strategies for business administration (Soni, Khular
Sharma, Singh, & Kapoor, 2019). Predictive analytics is employed in applications with the highest
predictive performance; however, often the most important factors in any predictive modelling are
data accuracy and relevance. Business applications of predictive modeling must be based on
qualitative data where the outcomes are both valuable to business constituents and are within the
company’s power to influence decisively (Adya & Collopy, 1995). A business can leverage predictive
analytics, for instance, to forecast consumer response based on recent purchase history, even when the
data comes from the teleservices division, to guide an outbound campaign strategy. In addition,
forecasts are increasingly being used in resource intensive business applications, such as for reducing
uncertainty in the marketing effort planning and risk management.

The relevance of forecasts is also key in various functions, including risk assessment and
resource allocation. To date, most applications of predictive modelling in a business production
environment has been akin to chasing a moving target, as industry conditions and company strategies
fluctuate, models are retrained repeatedly on fresh data. Frequently, the training and forecasting
windows need to be adjusted to accommodate shifts in the underlying processes being modeled. An
alternative, more proactive approach is presented that involves the undertaking of an end of season
retrospective analysis of model performance to guide model development in time for the start of the
forthcoming season. In this way, the production models are positioned as a resource, much like
business intelligence or market research. (Alabi, 2023).

Thus, a company can use its predictive modelling capabilities to establish an information
advantage over its competitors. Finally, predictive analytics for business is a rapidly evolving field
along with recent advancements in AI technologies, such as deep learning and active learning
methods. Modeling techniques continuously develop to adapt to this evolving landscape, a meditation
on frequently encountered challenges and possible strategies to address them is described. (Ramya,
Yerraguravagari, Gaikwad, & Gupta, 2024).

6.2. AI-Driven Customer Experiences


Using AI technologies to create wonderful personalized customer experiences is how smart
businesses are moving into the future. AI processes customer data to recognize patterns and forecast
customer behavior across all touch points. Analysis of customer data helps to deliver personalized
customer experiences, predict customer preferences, facilitate the upselling of additional products and
services wherever customers interact – on the website, social media, email and mobile or in-store.
Through customer analytics, AI-based initiatives to mood, transaction, behavior, feedback, spouse,

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demographics, time, observation can provide businesses capabilities to tailor all customer interactions
to individual preferences. (Okeleke, Ajiga, Folorunsho, & Ezeigweneme, 2024).

AI tools for listening and analytics will be used to analyze customer conversations – what they
are talking about, feeling or even what language they are talking in. Armed with this real-time
engagement or feedback, companies will be able to proactively respond to their customer
conversations, which will provide confidence to their clientele – whether they are loyal customers or
prospects who will remember and eventually turn into new customers. AI-driven customer
relationship management allows businesses to be proactive, foresee future trends, understand the
intent of customers and act quickly in a proactive manner to maintain a loyal customer base. By
utilizing AI technologies it’s possible to improve efficiency, reduce costs and create an outstanding
customer experience that will make service interactions less trivial than they are today. Ultimately, AI
technologies will redefine customer experiences, differentiated by the key product differentiator in the
competitive landscape. (Orji, Orji, & Olagunju, 2024).

6.3. Workforce Implications


The influence of artificial intelligence (AI) on business has been substantial and it brings the
potential to deepen its impact. Developments in machine learning and other AI technologies are
already streamlining processes within organizations, often at a fraction of the cost of human workers.
Over the next several years, it is expected that the pace of AI integration within business
environments will quicken. The implications of this change will be profound and will force
businesses to adapt in myriad ways. (Challoumis, 2024).

On the surface, AI integration appears to be bad news for many workers. Researchers have
estimated that just under 50% of the work done by humans could be easily automated by adapting
currently existing AI technologies. Historically, it has taken decades for displaced workers to find
new roles as the job market evolves in response to technological advancements. This time around the
pace is likely to be quicker due to a rapidly changing job market. However, assisting in fast-tracking
workers into the job market will be the need for significant reskilling and upskilling on the part of
affected employees, which is likely to be costly and time-consuming (Glebova, Øivind Madsen,
Mihaľová, Géczi, Mittelman, & Jorgič, 2024)..

This paints a rather grim picture for organizations. Rapidly adopting new technologies is likely
to result in a leaner, more efficient workforce. Paying for displaced employees to receive advanced
education will carry a hefty price tag, but a skilled workforce is generally considered to be essential
for future success. Furthermore, there are those who believe in a more optimistic view, arguing that
AI brings the opportunity to free people from repetitive, low-skilled tasks and enable them to focus
on higher-level work. Further, history has shown that the job market typically evolves in response to
new technologies, creating new roles after others have been rendered obsolete (Singh & Pandey,
2024).

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Vol. 5, No. 1, March 2025

7. Conclusion
This article has emphasized that AI technologies are being integrated into business
administration in various ways, potentially reshaping business contexts. The literature analysis
showed that businesses are undertaking R&D and making technological shifts to integrate AI into
business administration. Furthermore, AI technologies are transforming HR, marketing, supply chain,
innovation, and R&D processes. Case studies highlighted how companies are using AI to optimize
their supply chain and R&D processes, respectively.

AI-driven systems will continue to evolve over the short and medium term. This suggests the
potential for businesses to continue redesigning business processes. On the other hand, the high level
of investment and the degree of current integration of AI industries are challenging to compete. With
machine learning technology has matured, materials, and technological barriers making it a large
scale AI amount of data collected in the study, the growth of the industry patent and the large
deployment of AI driven systems. Businesses need to have a targeted strategic plan and carefully
consider ethical issues and the need to manage resistance. On the other hand, the increased
information flow due to data leakage and the absence of secure data privacy and security as critical
success factors are described as important. The connection between the evolution of AI-driven
systems and the resulting patent analysis can provide potentially useful information to understand
their strategies. Further business-to-business analysis should consider the rapidly changing trends of
AI technologies resulting from the current explosion. In the longer term, it will probably be necessary
to investigate how the business context will continue to be transformed by the adoption of other
disruptive technologies.

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