AI plays a pivotal role in data-driven decision making, particularly in the context of digital transformation, by offering the following advantages:

1. Advanced Data Analytics: AI and machine learning algorithms can process vast amounts of data much faster than humans and traditional statistical methods. They can handle diverse data types and identify complex patterns that humans might overlook. This allows for more sophisticated, real-time analytics that can drive better decision making.
2. Predictive Capabilities: AI systems can leverage historical data to make predictions about future trends or behaviors. These predictive models can help organizations anticipate changes in market conditions, customer behavior, supply chain dynamics, and more, allowing for proactive decision making.
3. Personalization: AI can tailor products, services, and interactions to individual customers based on their data. This leads to more effective marketing and sales strategies, improved customer service, and ultimately, better business outcomes.
4. Automated Decision-Making: Certain decisions, particularly routine or operational ones, can be fully automated with AI. This not only increases efficiency but also minimizes human error.
5. Enhanced Decision Support: AI can augment human decision-making by providing data-driven insights and recommendations. For example, AI systems can analyze customer feedback to help product development teams decide on new features, or analyze financial data to support strategic investment decisions.
6. Risk Management: AI can help organizations identify and assess potential risks, such as credit risk in financial institutions or quality issues in manufacturing. This can support more effective risk management and decision-making.
7. Process Optimization: AI can analyze operational data to identify bottlenecks or inefficiencies in business processes. This can guide decisions on process improvement and optimization.

In summary, AI, by leveraging big data, can provide businesses with actionable insights and advanced analytical capabilities, thereby enabling data-driven decision-making. This becomes even more critical during digital transformation as businesses are trying to navigate change and become more agile and responsive to the market. However, the use of AI in decision making should be done ethically and responsibly, ensuring data privacy and addressing potential bias in AI algorithms.