Decision-Making

The application of artificial intelligence in business raises the question of managerial responsibility: to what extent are managers held responsible for the ‘automated’ decisions taken by the tools entrusted to them?

Automated decision-making leverages algorithms based on derived profiles, as well as assumptions about how we think.

The interpretability of these ‘black boxes’ is a real challenge – because humans, even those who design them, cannot understand how the variables are combined to make predictions.

The value of AI in decision-making doesn’t come from the technology itself, but from how organizations leverage AI to enhance the processes of managerial decision-making.

In the articles reviewed below, the authors discuss the mechanics of how AI can support managerial decision-making, the challenges of capturing the context of the decision environment, and the ethical questions that automated decision-making brings to light.

The authors point out the various potential use cases of AI assisted decision-making in business and society, the potential value that AI produces, as well as the implicit ethical and legal questions that have been raised. They argue, from a variety of angles, that AI’s benefits will be conditioned by how organizations manage the practical issues of the implementation and supervision of such systems.