Journal of African Development

Corporate finance positions have been significantly changed in the past ten years. Previously, financial decisions were made based on periodic reports, manual models and the collective brainpower of upper leadership. Today, many companies have relied on Artificial Intelligence (AI) all sorts of forecasting, information in actual time streams and automated dangers administration methods for the important skilled with their decision making systems. Whether this evolution increases the quality of financial decisions made - or simply increases their speed - is still debated in both academic and professional circles. This paper examines the effects of digital transformation on corporate financial decision making on three fronts: capital budgeting, risk evaluation and financial forecasting. Using a mixed-methods research approach, the research analyzes financial data from 140 companies in the manufacturing, banking, and retail industries, along with structured interviews with 28 senior executives in the field of finance. The theoretical framework is based on the Dynamic Capabilities View and Information Processing Theory. The results suggest that the companies that had been more digitally mature were able to make capital allocation decisions 34% faster, and produced forecasts with much lower error margins. However, the quality of such outcomes had more to do with organizational culture and leadership preparation than technology adoption itself. This paper detailing the scheme introduces an integrated approach to link digital maturity with the quality of financial decisions and provides specific insights for CFOs, boards, and financial regulators who are struggling through this transition phase..