Organizational Decision-Making Structures in the Age of Artificial Intelligence

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…