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The Impact of AI on Decision-Making in High-Stakes Environments

Author

Listed:
  • Giuseppe Galetta
  • Stefania De Simone
  • Massimo Franco

Abstract

This study examines how artificial intelligence (AI) is transforming decision-making processes in organizations operating in high-stakes environments. Specifically, it analyzes the impact of AI-based Decision Support Systems (AI-DSSs) on governance, accountability, and performance. Military cases are used as analogies to highlight the acceleration of decision-making cycles and the challenges of maintaining meaningful human control over AI decisions. The research is based on a thematic analysis of 388 academic, military, and institutional sources, processed by NVivo software and analyzed through Grounded Theory methodology. Observational data from ongoing conflicts are used as an empirical context and complemented by SWOT analysis to assess risks and benefits. The analysis identifies three key constructs- decision acceleration, artificial agency, and meaningful human control. Findings show that AI acts as a ‘decision amplifier,’ increasing data processing speed, while introducing risks such as excessive dependence, loss of human control, bias, hallucinations, and accountability gaps. This outlines a bounded rationality decision acceleration paradigm, where speed tends to prevail over precision- AI-DSSs increase organizational information processing capacity and compress the OODA loop, shifting human decision-making from direct deliberation toward validation of machine-generated options. The study highlights the urgent need to preserve human control in critical decision-making processes, both in military and business contexts. It proposes a human–machine cooperative model capable of balancing efficiency with human oversight, avoiding full delegation to AI. Finally, the research emphasizes the importance of developing appropriate governance and compliance mechanisms to regulate AI use in high-stakes environments, ensuring accountability, respect for human values, and the prevention of conflict escalation.

Suggested Citation

  • Giuseppe Galetta & Stefania De Simone & Massimo Franco, 2026. "The Impact of AI on Decision-Making in High-Stakes Environments," International Journal of Business and Management, Canadian Center of Science and Education, vol. 21(4), pages 1-48, June.
  • Handle: RePEc:ibn:ijbmjn:v:21:y:2026:i:4:p:48
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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