AI-Enabled Strategic Foresight for Competitive Advantage: Predictive Intelligence and Adaptive Decision-Making in Dynamic Markets
Year: 2026
Type: article
Abstract: In strategic management, artificial intelligence (AI) is playing a growing role, allowing companies to anticipate market shifts, make predictions and make adaptive decisions in uncertain situations. This is a narrative review that explores how AI-driven strategic foresight can help create a competitive advantage, focusing on the concepts of predictive intelligence and adaptive decision-making in dynamic markets. It integrates up-to-date views on market forecasting, environmental scanning, opportunity recognition, risk anticipation and strategic planning using machine learning, deep learning, natural language processing, big data analytics and intelligent decision-support systems. As shown in the review, predictive intelligence enhances the ability of the organization to see the trends that are developing and to evaluate what may happen next, and adaptive decision-making empowers companies to act in response to these trends in time. These capabilities can boost organizational agility, innovation, market responsiveness, strategic resilience, resource optimization, and competitiveness. However, factors such as data quality, algorithmic bias, model reliability, and limited explainability, along with ethical considerations and organizational readiness, are factors that limit the effectiveness of AI-powered foresight. It is therefore critical for human expertise and managerial judgment to interpret the AI-generated insights and ensure responsible strategic actions. Strategically important advances in explainable AI, generative AI, large language models, causal AI, multimodal systems and agentic technologies emerge. In sum, sustainable competitive advantage requires a combination of technological intelligence, perpetually learning organizations, adaptive organizations, clear governance, and human-AI collaboration.
Source: Computer and decision making.
Institutions: Chhatrapati Shahu Ji Maharaj University, Aditya University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W7225199013