Integrating AI into Strategic Business Decisions: A Risk Management Perspective

DOI

10.2991/978-94-6239-825-2_27How to use a DOI?

Keywords

Artificial Intelligence; Strategic Decision-making; Enterprise Risk Management; Accountability; Corporate Governance

Abstract

Companies have started incorporating AI into decisions concerning acquisitions, market entry, and resource allocation, yet less attention has been paid to how deeper AI involvement changes the firm’s risk profile. This conceptual study adopts an enterprise risk management perspective and draws on prior experimental, organizational, and regulatory evidence, including published research on reliance on algorithmic recommendations and an IOSCO regulatory survey that received 184 responses. It develops a framework distinguishing technical, decisional, and institutional exposure and relates these layers to the organizational locus of responsibility. AI involvement is represented by three analytical anchors (informing, recommending, and deciding) on a continuum of decision authority. The framework proposes that absolute technical exposure increases and then approaches a control-dependent ceiling, that decisional exposure is greatest when AI recommends while humans retain formal authority, and institutional exposure increases as AI outputs become more directly connected to organizational action. These trajectories are theoretically expected patterns evaluated against prior evidence rather than estimates derived from newly collected data. The resulting calibration principle links permissible AI authority to decision reversibility, meaningful human override, and accountable ownership.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Runlong Zou
PY  - 2026
DA  - 2026/11/10
TI  - Integrating AI into Strategic Business Decisions: A Risk Management Perspective
BT  - Proceedings of the 2026 5th International Conference on Public Service, Economic Management and Sustainable Development (PESD 2026)
PB  - Atlantis Press
SP  - 275
EP  - 285
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-825-2_27
DO  - 10.2991/978-94-6239-825-2_27
ID  - Zou2026
ER  -