Artificial Intelligence (AI) is transforming the way businesses operate, offering opportunities to enhance efficiency, improve decision-making, and deliver personalized customer experiences. This study examined the advantages and disadvantages of AI adoption in the business sector, providing a comprehensive view of its impact on operations, strategy, and stakeholders. On the positive side, AI enables automation of repetitive tasks, predictive analytics for strategic planning, and advanced personalization that can boost customer satisfaction and loyalty. It also offers potential cost savings, improved accuracy, and 24/7 operational capabilities. However, the integration of AI also presents significant challenges. High implementation costs, data quality issues, and the need for specialized talent can limit accessibility, especially for smaller organizations. Ethical concerns — including bias in algorithms, lack of transparency, and privacy risks — require careful governance to maintain trust. Over-reliance on AI can lead to reduced human oversight, increasing vulnerability to errors or system failures. The environmental footprint of large-scale AI models and the disruption of jobs through automation add further complexity. This study aimed to provide a balanced understanding of AI’s role in modern business, highlighting both its transformative potential and its limitations. The findings can help business leaders, policymakers, and researchers develop strategies for responsible and sustainable AI adoption. By addressing both opportunities and risks, the study contributes to informed decision-making and encourages practices that align technological advancement with ethical, economic, and social priorities.