Organizational Decision-Making Structures in the Age of Artificial Intelligence

Y.R. Shrestha, S.M. Ben-Menahem, G. von Krogh

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

How does organizational decision-making change with the advent of artificial intelligence (AI)-based decision-making algorithms? This article identifies the idiosyncrasies of human and AI-based decision making along five key contingency factors: specificity of the decision search space, interpretability of the decision-making process and outcome, size of the alternative set, decision-making speed, and replicability. Based on a comparison of human and AI-based decision making along these dimensions, the article builds a novel framework outlining how both modes of decision making may be combined to optimally benefit the quality of organizational decision making. The framework presents three structural categories in which decisions of organizational members can be combined with AI-based decisions: full human to AI delegation; hybrid—human-to-AI and AI-to-human—sequential decision making; and aggregated human–AI decision making.
Original languageEnglish
Pages (from-to)66-83
Number of pages18
JournalCalifornia Management Review
Volume61
Issue number4
Early online date13 Jul 2019
DOIs
Publication statusPublished - Aug 2019
Externally publishedYes

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