Automated decision-making

Abstract

Purpose This paper aims to analyse three decision-making approaches that involve humans and artificial autonomous agents, namely, human “in the loop”, “on the loop” and “out of the loop” and identifies the decision characteristics that determine the choice of a decision-making approach. Design/methodology/approach This is a conceptual paper that analyses the relationships between the human and the artificial autonomous agents in the decision-making process from the perspectives of the agency theory, sustainability, legislation, economics and operations management. Findings The paper concludes that the human “out of the loop” approach is most suitable for quick, standardised, frequent decisions with low negative consequences of a wrong decision by the artificial intelligence taken within a well-defined context. Complex decisions with high outcome uncertainty that involve significant ethical issues require human participation in the form of a human “in the loop” or “on the loop” approach. Decisions that require high transparency need to be left to humans. Originality/value The paper evaluates the decision-making approaches from the perspectives of the agency theory, sustainability, legislation, economics and operations management and identifies the decision characteristics that determine the choice of a decision-making approach.

Finding a fit between CXO’s experience and AI usage in CXO decision-making: evidence from knowledge-intensive professional service firms

“…Assessing potential privacy risks is one of the factors for dissonance between human and AI collaboration, particularly in the context of whether a machine is blamed for its fault (Lee and Kobsa, 2020). Another concern is whether an AI designer or department head knows and is held accountable for how AI performs when deployed in practice (Ivanov, 2022). An example of such moral obligations in human-AI collaboration may be the malfunction of the Maneuvering Characteristics Augmentation System in the Boeing 737 max aircraft that resulted in the demise of over 200 passengers from two crashes (Prahl and Goh, 2021).…”

“…AI adoption in the workplace often deploys algorithmic data analytics and automation of tasks and processes using machine learning (ML) to improve decision-making with little or no human intervention (Bader and Kaiser, 2019; Dear, 2019). Latest developments in AI are revolutionizing managerial functions, such as auditing services (Tiron-Tudor and Deliu, 2022), portfolio management (Huang and Rust, 2018), automated trade in financial markets (Ivanov, 2022) and aspects of people management (Budhwar et al. , 2022; Malik et al.…”

“…AI adoption in the workplace often deploys algorithmic data analytics and automation of tasks and processes using machine learning (ML) to improve decision-making with little or no human intervention (Bader and Kaiser, 2019;Dear, 2019). Latest developments in AI are revolutionizing managerial functions, such as auditing services (Tiron-Tudor and Deliu, 2022), portfolio management (Huang and Rust, 2018), automated trade in financial markets (Ivanov, 2022) and aspects of people management (Budhwar et al, 2022;Malik et al, 2023), such as recruitment and selection and talent management (Malik et al, 2021(Malik et al, , 2022a. There have been significant breakthroughs in AI apps' processing power, exponential increases in data availability and new ML algorithms (Haesevoets et al, 2021).…”

What can we learn from Star Wars about the future of tourism? Absolutely everything!

“…24. Although robots are everywhere, decisions in travel, tourism and hospitality companies are not automated (Ivanov, 2022) but are taken by biological entities.…”

“…The Empire and the First Order fell for that same reason – Sheev Palpatine's (aka the Emperor, Darth Sidious) obsession with power.The design of facilities needs to be robot-friendly to allow for robots' mobility on the premises of hospitality companies (Ivanov and Webster, 2017b). Although robots are everywhere, decisions in travel, tourism and hospitality companies are not automated (Ivanov, 2022) but are taken by biological entities.Simplicity goes in hand with posh design. In the future, there will still be hotels and restaurants for every pocket.…”