Impact of Artificial Intelligence Adoption and Leadership Styles on Strategic Planning Effectiveness in the Philippine Techno Firms

Abstract

This quantitative, descriptive-correlational study examined the impact of artificial intelligence (AI) adoption and leadership styles on strategic planning effectiveness among technology firms in the Philippines. Guided by frameworks from Biloslavo et al. (2024), Gichuki et al. (2024), and Phillips and Moutinho (2000), the study explored how leadership behaviors mediate the relationship between AI integration and effective planning. A total of 105 executives and managers participated in the survey, using a validated questionnaire with a reliability range of .71 to .91 across three scales. Descriptive statistics revealed very high levels of AI adoption (M = 6.40, SD = 0.79) and strategic planning effectiveness (M = 6.30, SD = 0.79), and a high level of leadership styles (M = 5.64, SD = 0.61). Pearson’s correlation showed significant positive relationships among the three variables, while multiple regression confirmed that AI adoption and leadership styles collectively explained 72% of the variance in strategic planning effectiveness (R² = .72, p < .001). Mediation analysis further indicated that leadership styles significantly mediated the relationship between AI adoption and strategic planning outcomes (β = 0.31, p < .001). The findings underscore the importance of aligning AI initiatives with effective leadership to achieve sustainable organizational planning. The study recommends enhancing leadership development programs to strengthen digital integration strategies and maximize the benefits of AI in strategic management.