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

• Published in: Business horizons Vol. 64; no. 5; pp. 711 - 724
• Main Authors: Leyer, Michael, Schneider, Sabrina
• Format: Journal Article
• Language: English
• Published: Elsevier Inc 01-09-2021
• Subjects: Artificial intelligence; Augmentation; Automation; Decision-making; Managerial job design; Decision-making; Augmentation; Automation; Managerial job design; Artificial intelligence
• ISSN: 0007-6813; 1873-6068
• DOI: 10.1016/j.bushor.2021.02.026

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.