Artificial Intelligence in Commerce: Transforming Financial Decision-Making in Indian Businesses

Abstract

The concept of Artificial Intelligence (AI) has taken a gradual step out of the fringes of technological experimentation to the centre of managerial decision-making in contemporary business entities. This change is especially pronounced in the Indian commercial environment, as this area is rapidly becoming digitalized, more market volatility is observed, and companies have an increasing pressure to become more economical with their finances and more strategic in their approaches. The study article explores how AI can be used as a decision-support tool in financial management practices of budgeting, forecasting, cost control, and risk assessment in Indian companies. Instead of considering AI as a technical innovation, the study aims at managerial perceptions, organizational readiness, and interaction of the human judgment and machine-generated insights.

It is conceptual and descriptive research that is based on secondary data drawn on academic literature, industry reports, policy documents, and documented business practices in India. According to the analysis, AI makes financial decisions more high-quality, fast, and consistent, as it makes the information overload less significant, and subjective prejudice is minimized. Simultaneously, the results suggest that the Indian managers are quite likely to perceive AI as a strategic ally, but not as a replacement of professional discretion. Issues like low data quality, lack of human resources, ethical issues, and expensive costs still limit the successful implementation, particularly by the small and medium sized enterprises. The article adds to the literature on commerce and management by providing an Indian view of AI-based financial decision-making and the necessity to balance technological availability and human knowledge.