Libya Study Links AI Use to Better Decisions and Innovation

A study published in the journal Sustainability links the use of AI decision support in Libya's oil and gas sector to improved managerial decisions and stronger sustainable digital innovation. The research emphasizes the importance of leadership and daily work practices in shaping the effectiveness of AI tools.

The study, conducted by researchers Nawal Almabrouk Masoud Khaleel, Sami Mohammad, and Ayse Arslan, analyzed responses from 326 managers and decision-makers across Libya's oil and gas industry. The findings suggest that AI can support better decision-making when paired with strong leadership and efficient processes.

Libya's energy sector, facing challenges like aging infrastructure and digital expertise shortages, provides a unique context for the research. Sustainable digital innovation in this setting involves developing digital solutions that enhance business performance while addressing environmental, social, and economic needs.

The researchers collected survey responses from June to August 2025, distributing 520 questionnaires and retaining 326 usable responses. Participants rated their companies' use of AI, leadership practices, and decision quality on a five-point scale. The survey was reviewed by specialists and tested with 12 managers outside the final sample.

Using SmartPLS 4, the team examined relationships among survey measures and checked estimates through 10,000 resamples. Their framework drew on the Dynamic Capability View and the Digital Leadership Perspective to explain how AI information influences managerial action and innovation.

The results showed positive connections between AI decision support and sustainable digital innovation, as well as between AI use and decision quality. Decision quality explained part of the relationship between AI use and innovation, suggesting that useful information needs effective decision processes to lead to practical change.