Data-Driven Leadership and Root Cause Analysis in the AI Era: Enhancing Strategic Decision-Making and Sustainable Problem Solving

Abstract

The rapid advancement of artificial intelligence (AI) has transformed organizational leadership, requiring leaders to adopt analytical thinking, data-driven decision-making, and systematic problem-solving skills. Modern leaders must not only respond to organizational challenges but also identify the underlying causes of problems to create sustainable solutions. Root Cause Analysis (RCA) has emerged as an essential framework for identifying the origins of operational inefficiencies, communication breakdowns, and performance-related issues within organizations. This article discusses the integration of data-driven leadership and RCA principles in the AI era. It explores the distinction between symptoms and root causes, introduces key RCA tools such as the 5 Whys technique and Fishbone Diagram, and highlights how these methods can improve leadership effectiveness and organizational outcomes. Furthermore, the article presents strategies for applying RCA in real-world organizational settings to strengthen team performance, decision-making quality, and long-term operational sustainability.