Artificial Intelligence and IoT Integration for Intelligent Decision-Making Systems

Vivi Meilinda; Li Wei Ming; Muhtarom Muhtarom; Jihan Zanubiya; Muhamad Rapidan Kusuma; Rafel Yaputra

Authors

Vivi Meilinda Muhammadiyah Kuningan College of Health Sciences Author https://orcid.org/0000-0002-8223-6644
Li Wei Ming Ijiis Incorporation Author
Muhtarom Muhtarom Universitas Terbuka Author https://orcid.org/0009-0002-1497-9574
Jihan Zanubiya University of Raharja Author https://orcid.org/0009-0009-3661-0824
Muhamad Rapidan Kusuma University of Raharja Author https://orcid.org/0009-0004-8447-2255
Rafel Yaputra University of Raharja Author

Keywords:

Artificial Intelligence, Business Process Efficiency, Internet of Things, Technology, Structural Equation Modeling

Abstract

This study investigates the incorporation of Artificial Intelligence (AI) and the Internet of Things (IoT) as strategic enablers of organizational performance improvement, presented through a cohesive single-paragraph structure encompassing the Background, Objective, Method, Results, and Conclusion. The Background underscores the intensifying market competition and accelerating pace of technological advancement, which collectively compel organizations to elevate their operational effectiveness and optimize resource allocation. Grounded in this context, the study's Objective is to assess how the adoption of AI and IoT influences operational efficiency and the attainment of competitive advantage. To fulfill this aim, the Method employs a quantitative research design, drawing on survey data obtained from 200 executives representing diverse industry sectors, subsequently analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM) to examine direct, indirect, and interaction effects among the constructs. The Results demonstrate that the adoption of both AI and IoT substantially enhances operational efficiency, which in turn serves as a significant driver of competitive advantage; furthermore, AI and IoT individually exert direct favorable effects on competitive advantage, while their concurrent implementation yields a more pronounced impact compared to singular deployment. The Conclusion asserts that the synergistic integration of AI and IoT empowers organizations to streamline operational processes, facilitate data-informed decision-making, and reinforce their long-term competitive standing, thereby recommending that enterprises seeking sustained performance improvements prioritize the strategic adoption of these transformative technological innovations.

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