Artificial Intelligence Decision Support Systems and Organizational Performance of Nigerian Service Firms

Abstract: This study examined the impact of Artificial Intelligence Decision Support Systems (AI DSS) on the organizational performance of Nigerian service firms. Using a quantitative research design and secondary data collected from 50 service firms across Lagos, regression analysis revealed that AI DSS adoption significantly influences performance outcomes with R² = 0.68, F(3, 46) = 31.45, p < 0.001. Results indicated that AI-enabled decision support improves operational efficiency by 22%, enhances revenue growth by 18%, and reduces decision-making errors by 15% compared to firms without AI DSS. Knowledge management, data analytics capability, and employee training were identified as key predictors of performance improvement. Hypothesis testing showed that AI DSS positively affects organizational productivity (β = 0.54, t = 6.12, p < 0.001), decision accuracy (β = 0.47, t = 5.23, p < 0.001), and customer satisfaction (β = 0.41, t = 4.87, p < 0.001). The study concludes that strategic implementation of AI DSS is essential for sustainable competitive advantage in Nigerian service firms. The study recommends that organizations should strengthen strategic planning and implementation mechanisms to improve performance outcomes.