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Decision augmentation and automation with artificial intelligence: Threat or opportunity for managers?

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  • Leyer, Michael
  • Schneider, Sabrina

Abstract

Artificial intelligence (AI) has emerged as a promising and increasingly available technology for managerial decision-making. With the adoption of AI-enabled software, organizations can leverage various benefits of the technology, but they also have to consider the intended and unintended consequences of using the technology for managerial roles. It is still unclear whether managers will benefit from enhancing their abilities with AI-enabled software or become powerless puppets that do more than announce AI-enabled software results. Our research has revealed distinct ways in which organizations can use AI-enabled decision-making solutions: as tools or novelties, for decision augmentation or automation, and as either a voluntary or a mandatory option. In this article, we discuss the implications of each of these combinations on the relevant managers. We consider outcomes related to managerial job design and derive practical advice for organizational designers and managers who work with AI. Our outcomes provide guidance on how to deal with the conflict-riddled relationship between managers and technology with regard to capabilities, responsibilities, and acceptance of AI-enabled software.

Suggested Citation

  • Leyer, Michael & Schneider, Sabrina, 2021. "Decision augmentation and automation with artificial intelligence: Threat or opportunity for managers?," Business Horizons, Elsevier, vol. 64(5), pages 711-724.
    • Handle: RePEc:eee:bushor:v:64:y:2021:i:5:p:711-724
    DOI: 10.1016/j.bushor.2021.02.026
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    1. Plantec, Quentin & Deval, Marie-Alix & Hooge, Sophie & Weil, Benoit, 2023. "Big data as an exploration trigger or problem-solving patch: Design and integration of AI-embedded systems in the automotive industry," Technovation, Elsevier, vol. 124(C).
    2. Deepa, R. & Sekar, Srinivasan & Malik, Ashish & Kumar, Jitender & Attri, Rekha, 2024. "Impact of AI-focussed technologies on social and technical competencies for HR managers – A systematic review and research agenda," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    3. Johnson, Prince Chacko & Laurell, Christofer & Ots, Mart & Sandström, Christian, 2022. "Digital innovation and the effects of artificial intelligence on firms’ research and development – Automation or augmentation, exploration or exploitation?," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    4. Manal Ahdadou & Abdellah Aajly & Mohamed Tahrouch, 2024. "Unlocking the potential of augmented intelligence: a discussion on its role in boardroom decision-making," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 21(3), pages 433-446, September.
    5. Ion Popa & Marian Mihai Cioc & Andreea Breazu & Catalina Florentina Popa, 2024. "Identifying Sufficient and Necessary Competencies in the Effective Use of Artificial Intelligence Technologies," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 26(65), pages 1-33, February.
    6. Wencheng Lu, 2024. "Inevitable challenges of autonomy: ethical concerns in personalized algorithmic decision-making," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-9, December.

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