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Artificial Intelligence and Strategic Decision-Making: Evidence from Entrepreneurs and Investors

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  • Felipe A. Csaszar
  • Harsh Ketkar
  • Hyunjin Kim

Abstract

This paper explores how artificial intelligence (AI) may impact the strategic decision-making (SDM) process in firms. We illustrate how AI could augment existing SDM tools and provide empirical evidence from a leading accelerator program and a startup competition that current Large Language Models (LLMs) can generate and evaluate strategies at a level comparable to entrepreneurs and investors. We then examine implications for key cognitive processes underlying SDM -- search, representation, and aggregation. Our analysis suggests AI has the potential to enhance the speed, quality, and scale of strategic analysis, while also enabling new approaches like virtual strategy simulations. However, the ultimate impact on firm performance will depend on competitive dynamics as AI capabilities progress. We propose a framework connecting AI use in SDM to firm outcomes and discuss how AI may reshape sources of competitive advantage. We conclude by considering how AI could both support and challenge core tenets of the theory-based view of strategy. Overall, our work maps out an emerging research frontier at the intersection of AI and strategy.

Suggested Citation

  • Felipe A. Csaszar & Harsh Ketkar & Hyunjin Kim, 2024. "Artificial Intelligence and Strategic Decision-Making: Evidence from Entrepreneurs and Investors," Papers 2408.08811, arXiv.org.
    • Handle: RePEc:arx:papers:2408.08811
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    References listed on IDEAS

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    3. Li, Lun & Peng, Yanbo & Shao, Guanlin & Dai, Huiyang, 2025. "Betting on success: Unveiling the role of innovation and financing capability on funding decisions by human versus AI evaluators," Economics Letters, Elsevier, vol. 256(C).
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    5. Jose Ramon Saura & Rita Bužinskienė, 2025. "Behavioral economics, artificial intelligence and entrepreneurship: an updated framework for management," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-33, December.
    6. Simon Kleinert & Silvio Vismara, 2026. "The reconfiguration of entrepreneurship: how digital platforms and artificial intelligence transform the entrepreneurial process," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 16(1), pages 1-24, March.
    7. Madathil, Johnson Clement, 2025. "Generative AI advertisements and Human–AI collaboration: The role of humans as gatekeepers of humanity," Journal of Retailing and Consumer Services, Elsevier, vol. 87(C).

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