Organizational Learning and Enactment in the Era of Artificial Intelligence

Patrick Hendriks, Timo Sturm, Christian M. Olt, Ning Nan and Peter Buxmann

Publications of Darmstadt Technical University, Institute for Business Studies (BWL) from Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL)

Abstract: Organizations must constantly align their operations with their environment in order to survive. To achieve this, organizations use two primary strategies: Organizations (1) learn about their environment to adapt to it and (2) enact their environment to adapt it to their own needs. With the rise of artificial intelligence (AI), humans are no longer the only ones capable of learning and enacting on behalf of organizations. We investigate how organizations can effectively coordinate organizational learning and enactment to ensure that they complement rather than conflict with each other. Through a series of agent-based simulations, we find that the optimal coordination of learning and enactment between humans and AI largely depends on the prevailing nature of human learning and allowing both humans and AI to enact for organizations. Our findings contribute to rethinking theory on organizational learning and enactment in the AI era and provide practical guidance for organizations’ strategic alignment.

Date: 2024-12
New Economics Papers: this item is included in nep-cmp
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Persistent link: https://EconPapers.repec.org/RePEc:dar:wpaper:150817

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