Purpose: This study investigates the profound impact of artificial intelligence (AI) capabilities on decision-making processes and organizational performance, addressing a crucial gap in the literature by exploring the mediating role of decision-making speed and quality. Design/methodology/approach: Drawing upon resource-based theory and prior research, this study constructs a comprehensive model and hypotheses to illuminate the influence of AI capabilities within organizations on decision-making speed, decision quality, and, ultimately, organizational performance. A dataset comprising 230 responses from diverse organizations forms the basis of the analysis, with the study employing a partial least squares structural equation model (PLS-SEM) for robust data examination. Findings: The results demonstrate the pivotal role of AI capabilities in shaping organizational decision-making processes and performance. AI capability significantly and positively affects decision-making speed, decision quality, and overall organizational performance. Notably, decision-making speed is a critical factor contributing significantly to enhanced organizational performance. The study further uncovered partial mediation effects, suggesting that decision-making processes partially mediate the relationship between AI capabilities and organizational performance through decision-making speed. Originality/value: This study contributes to the existing body of literature by providing empirical evidence of the multifaceted impact of AI capabilities on organizational decision-making and performance. Elucidating the mediating role of decision-making processes advances our understanding of the complex mechanisms through which AI capabilities drive organizational success.

In the contemporary environment of rapidly advancing technologies, this study investigates the influence of artificial intelligence (AI) capabilities on business performance, focused on the era of emerging technologies. Furthermore, this study is to examine how the combination of artificial intelligence capability; the timely decisions influence overall business performance, and to provide insights into how these factors interact and contribute to enhancing organizational success in the context of modern AI-driven decision-making processes. The research employs a quantitative approach to analyze data collected from 184 upper echelons from diverse firms. The study revealed that businesses leveraging higher artificial intelligence capability often achieved improved timely decisions. However, the optimal balance between timely decision-making varied across contexts, influencing overall business performance outcomes. Understanding this interplay is crucial for organizations seeking to enhance their operational effectiveness and strategic outcomes. The general perspective of this study offers valuable insights for organizations aiming to strategically enhance operational efficiency and overall effectiveness in an AI-driven environment.