Integrating Semantic NLP and PLS-SEM for AI-Enabled Strategic Decision Support: An Explainable Framework for Assessing Organisational AI Illiteracy

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The rapid growth of organisational textual data has increased the value of Natural Language Processing (NLP) and semantic analytics for strategic decision support. However, many employees still lack the knowledge and skills needed to evaluate AI-generated information critically. This study develops an explainable Management Information Systems (MIS) framework that integrates NLP-based semantic analytics with PLS-SEM to examine the relationship between AI illiteracy and strategic decision quality. A convergent mixed-methods design with sequential analytical integration was used with a valid sample of 200 knowledge workers from public organisations in Saudi Arabia across six industries. The sample included employees from Saudi Arabia, Egypt, Jordan, Sudan, Syria, India, and the Philippines. Quantitative data were analysed using PLS-SEM, while textual data were analysed using Sentence-BERT, BERTopic, semantic network analysis, and Aspect-Based Sentiment Analysis. The results showed that higher AI illiteracy was negatively associated with strategic decision quality and positively associated with automation bias, uncritical trust in AI, and cognitive offloading. Digital proficiency and AI governance awareness weakened the negative association between AI illiteracy and decision quality, while functional-background differences were examined through multigroup analysis. The semantic analysis identified six themes: AI competency, decision trust, AI governance, decision support, organisational learning, and risk awareness. Sentiment analysis showed positive views of productivity and decision support, together with concerns about algorithmic bias, explainability, transparency, and AI governance. The study contributes an integrated human–AI decision vulnerability framework in which semantic evidence complements structural modelling and provides a clearer understanding of AI-related competency, reliance, governance, and decision-support issues.