Artificial intelligence (AI) has significantly influenced decision-making processes across various domains, including law, healthcare, and autonomous systems. Despite its advancements, AI models face several critical challenges, including sensitivity to input variations, hyperparameter tuning complexities, coordination issues in multiagent environments, and fundamental differences in decision-making compared to human cognition. This study investigates four key dimensions of AI decision-making: (1) the impact of input perturbations on AIgenerated responses, (2) the role of hyperparameter tuning in optimizing AI performance, (3) the effectiveness of multiagent AI collaboration in ethical and strategic dilemmas, and (4) a comparative analysis of AI and human reasoning in real-world scenarios. The findings indicate that AI models exhibit response inconsistencies with minor input rewording, hyperparameter tuning significantly alters model accuracy and coherence, multi-agent AI systems struggle with consensus-building, and AI decision-making lacks ethical and emotional depth compared to human reasoning. This study highlights the need for robust AI training methodologies, structured decisionmaking protocols in multi-agent AI systems, and enhanced explain ability frameworks to improve AI’s effectiveness and reliability in real-world applications.