MIT Sloan Management Review Article on The Human Factor in AI-Based Decision-Making

AI now has a firm footing in organizations’ strategic decision-making processes. Five years ago, less than 10% of large companies had adopted machine learning or other forms of AI, but today 80% of them make use of the technology. Whether it is Amazon integrating algorithms into its recruiting processes or Walmart using AI for decisions about product lines, such examples show that the use of AI now transcends mere process automation and that AI is increasingly being used to augment decision-making processes at all levels, including top management.

In the boardroom, companies can use the power of AI to analyze information, recognize complex patterns, and even get advice on strategic issues. This predictive technology can help executives handle the increasing complexity of strategic choices by offering new perspectives and insights for consideration, which can help organizations gain competitive advantage.

About the Author

Philip Meissner is a professor of strategy and decision-making at ESCP Business School in Berlin and the cofounder and director of the European Center for Digital Competitiveness.

Christoph Keding is a research associate at ESCP Business School and a visiting scholar at the University of California, Berkeley.

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