Artificial Intelligence (AI) is transforming corporate operations, increasing productivity, and improving performance within organizations. Robotic process automation (RPA) and machine learning are examples of artificial intelligence (AI) technologies that reduce human error and operating expenses by streamlining repetitive activities. Artificial intelligence-driven chatbots and virtual assistants enhance client happiness and retention by offering prompt, customized assistance in the field of customer care. Businesses can make well-informed, strategic decisions by utilizing AI-driven data analytics, which provide insightful information about consumer behavior and market trends. Furthermore, by optimizing inventory levels and reducing disruptions, AI improves supply chain management through predictive analytics. AI algorithms are used in marketing to precisely target particular audience segments, hence improving campaign performance. Integrating AI increases competitiveness, inventiveness, and agility, which in turn increases profitability and market share. But for AI to be implemented successfully, ethical considerations, data security, and workforce impact must all be carefully considered. Sample of 214 people from different departments of business organization to explore application of artificial intelligence in business operations and its impact on organizational performance. The study concludes that there is significant impact of AI on organizational performance.