20.500.12556/DKUM-93698 Ethical leadership and management of small- and medium-sized enterprises the role of AI in decision making The integration of artificial intelligence (AI) within the decision-making processes of small- and medium-sized enterprises (SMEs) presents both significant opportunities and substan- tial ethical challenges. The aim of this paper is to provide a theoretical model depicting the interdependence of organisational decision-making levels and decision-making styles, with an emphasis on exploring the role of AI in organisations’ decision making, based on selected process dimension of the MER model of integral governance and management, particularly in relation to routine, analytical, and intuitive decision-making capabilities. The research methodology employs a comprehensive qualitative analysis of the scientific literature published between 2010 and 2024, focusing on AI implementation in SMEs, ethi- cal decision making in integral management, and regulatory frameworks governing AI use in business contexts. The findings reveal that AI technologies influence decision making across business policy, strategic, tactical, and operative management levels, with distinct implications for intuitive, analytical, and routine decision-making approaches. The analysis demonstrates that while AI can enhance data processing capabilities and reduce human biases, it presents significant challenges for normative–ethical decision making, requiring human judgment and stakeholder consideration. We conclude that effective AI integration in SMEs requires a balanced approach where AI primarily serves as a tool for data collection and analysis rather than as an autonomous decision maker. These insights contribute to the discourse on responsible AI implementation in SMEs and provide practical guidance for leaders navigating the complex interplay between (non)technological capabilities, ethical considerations, and regulatory requirements in the evolving business landscape. MER model of integral governance and management strategic management management process intuitive decision making responsible leadership small- and medium-sized enterprises (SMEs) artificial intelligence (AI) AI regulatory frameworks analytical decision making routine decision making true false true MDPI Angleški jezik Angleški jezik Znanstveno delo 2025-07-15 03:16:52 2025-07-15 10:09:18 2025-08-29 12:40:07 0000-00-00 00:00:00 2025 0 0 str. 1-27 issue 7, [article no.] 274 Vol. 15 2025 0000-00-00 Zaloznikova Objavljeno apc 2025-06-13 2025-07-10 2025-07-12 005.5:004.8 242469635 10.3390/admsci15070274 2076-3387 https://www.mdpi.com/2076-3387/15/7/274 1 6413a1df-6119-11f0-a7d3-00155d000105 https://dk.um.si/Dokument.php?lang=slv&id=193599 Ethical_Leadership_and_Management_of_Small-_and_Medium-Sized_Enterprises.pdf Ethical_Leadership_and_Management_of_Small-_and_Medium-Sized_Enterprises.pdf 1 A2CD689272C2E7C3234E48F2DD1BC974 71b250392e0406373b491389e97141efb9cbd218a649568c68acf7714cdbe7c7 de48e1ea-6152-11f0-a7d3-00155d000105 https://dk.um.si/Dokument.php?lang=slv&id=193612 Ekonomsko-poslovna fakulteta 0 0 0