AI and Strategic Decision Making Processes - An empirical study on how Large Language Models can be utilized in Strategic Decision Making Processes

Abstract: The purpose of this study is to contribute with an understanding of what role AI has, and might have, in strategic decision making processes. The literature review of the study builds upon research within Resource Based Theory, Strategic Decision Making Theory and is supported by technical reports on Large Language Models. It is a qualitative single case study with empirical data collected from six semi-structured interviews with professionals in knowledge-intensive firms from various consultancy and professional service firms. The empirical results showed that LLMs are utilized mainly in the early stages of the decision making process due to the novelty of the technology and it being encountered with several challenges, hindering a wide application of LLMs in firms. It also indicates that there is an increased demand in seeking consulting for strategic solutions supported by LLMs, either in internal processes or as a product