Evaluating The Influence Of AI-Driven Predictive Analytics on Strategic Financial Decisions in the Commerce Sector

Abstract

This paper examines how AI-driven predictive analytics is reshaping strategic financial decision-making within the commerce sector. Using a secondary-data approach (industry reports, peer-reviewed articles, consultancy white papers, and reputable news coverage), the study synthesizes evidence on value creation (forecasting accuracy, risk management, customer lifetime value, pricing and inventory optimization), organizational enablers, and major challenges (bias, explainability, governance, regulation). Key findings show that organizations that combine strategic leadership, high-quality data, and disciplined model-validation practices capture disproportionate financial benefits from predictive analytics, while failures in transparency and governance amplify legal and reputational risks. The paper ends with practical recommendations for managers and policymakers to realize AI value while managing risks.