Artificial Intelligence (AI) is changing the way that businesses make decisions and has a big impact on leadership dynamics. This research investigates how artificial intelligence (AI) affects leadership, with a particular emphasis on how AI-driven technologies improve organizational performance through increased productivity, enhanced decision-making, and creativity. AI frees up leaders' time to concentrate on strategic initiatives and original problem-solving by automating repetitive chores. Additionally, executives can make better choices more quickly because to AI's data-driven insights, which provide a deeper understanding of client preferences, staff performance, and market trends. AI integration in leadership also makes it easier to communicate, collaborate, and manage resources, which boosts the growth and competitiveness of organizations. But there are drawbacks to the development of AI as well, such moral dilemmas, the requirement for leadership teams to be upskilled, and the necessity to strike a balance between machine intelligence and human intuition. In addition to providing a thorough review of AI's position in contemporary leadership, this research looks at these prospects and problems. The results indicate that artificial intelligence (AI) may be used as a catalyst to change leadership styles and promote a creative, data-driven, and flexible corporate culture, in addition to being a tool for improving operations. Leaders may use AI to generate long-term competitive advantages and more accurately and strategically negotiate the intricacies of today's corporate environment