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Artificial Intelligence and Management: The Automation-Augmentation Paradox

PublicationArticle (in press)
Artificiell intelligens, Management, Sebastian Krakowski, Sebastian Raisch

Abstract

Taking three recent business books on artificial intelligence (AI) as a starting point, we explore the automation and augmentation concepts in the management domain. Whereas automation implies that machines take over a human task, augmentation means that humans collaborate closely with machines to perform a task. Taking a normative stance, the three books advise organizations to prioritize augmentation, which they relate to superior performance. Using a more comprehensive paradox perspective, we argue that, in the management domain, augmentation cannot be neatly separated from automation. These dual AI applications are interdependent across time and space, creating a paradoxical tension. Over-emphasizing either augmentation or automation fuels reinforcing cycles with negative organizational and societal outcomes. However, if organizations adopt a broader perspective comprising both automation and augmentation, they could deal with the tension and achieve complementarities that benefit business and society. Drawing on our insights, we conclude that management scholars need to be involved in research on the use of AI in organizations. We also argue that a substantial change is required in how AI research is currently conducted in order to develop meaningful theory and to provide practice with sound advice.

Raich, S. & Krakowski, S. (in press). Artificial Intelligence and Management: The Automation-Augmentation Paradox. Academy of Management Review

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Artificial Intelligence and Management: The Automation-Augmentation Paradox
Artikel (in press)Publication
Raich, S. & Krakowski, S.
Publication year

2021

Abstract

Taking three recent business books on artificial intelligence (AI) as a starting point, we explore the automation and augmentation concepts in the management domain. Whereas automation implies that machines take over a human task, augmentation means that humans collaborate closely with machines to perform a task. Taking a normative stance, the three books advise organizations to prioritize augmentation, which they relate to superior performance. Using a more comprehensive paradox perspective, we argue that, in the management domain, augmentation cannot be neatly separated from automation. These dual AI applications are interdependent across time and space, creating a paradoxical tension. Over-emphasizing either augmentation or automation fuels reinforcing cycles with negative organizational and societal outcomes. However, if organizations adopt a broader perspective comprising both automation and augmentation, they could deal with the tension and achieve complementarities that benefit business and society. Drawing on our insights, we conclude that management scholars need to be involved in research on the use of AI in organizations. We also argue that a substantial change is required in how AI research is currently conducted in order to develop meaningful theory and to provide practice with sound advice.

Peer Interaction and Pioneering Organizational Form Adoption: A Tale of the Two First For-Profit Stock Exchanges
Article (in press)Publication
Cheung, Z., Gustafsson, R. & Nykvist, R.
Publication year

2021

Abstract

Building on a historical case study on the first two stock exchanges to adopt the now globally dominant for-profit organizational form, the Stockholm Stock Exchange in 1993 and the Helsinki Stock Exchange in 1995, we argue that interaction among socially proximate peers contributes to pioneering organizational form adoption within an industry, particularly when such forms are introduced by established organizations. Peer interaction can induce a search for technically efficient organizational forms through the sharing of collective experiences, the establishment of collective assumptions, and a joint search for solutions. Together, these factors contribute to the legitimization of novel organizational forms in the local setting before the adoption of the first instantiation of those forms. We propose a context-sensitive multilevel model of peer-interaction-induced pioneering organizational form adoption that considers shared macro environmental drivers, idiosyncratic local environmental drivers, and peer interaction as central social mediators between the two.

The matter of locality: Family firms in sparsely populated regions
Article (in press)Publication
Lundberg, H. & Öberg, C.
Publication year

2021

Abstract

This paper explores the interaction and interdependence between family firms and sparsely populated regions. Interactivity underlines the dynamics of the setting and how it changes based on activities between the firm and the context, whereas interdependence refers to how the family firm and the region become mutually reliant on one another. Five case studies show that while the firms act under similar conditions in terms of disparity, their interplay with and dependence on the region differ. The study points to how the citizenship of the family firms is fundamental and how employment is at the heart of the interdependence, while those firms interacting most strongly with the region are those expanding beyond what would be expected by a family firm in terms of traditions and risk aversion. This again indicates a complex pattern of interactivities and interdependencies between family firms and sparsely populated regions. The paper provides important dimensions to theories on family firms’ local contexts specifically related to under-researched settings of sparsely populated regions and important implications for managers, public actors and policy makers, not the least related to support to such contexts.

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