You are currently viewing GenAI Tools and Decision-Making: Beware a New Control Trap

Generative AI tools promise to help leaders make better decisions. But they may also cause trouble by nudging leaders toward a control-based style, research shows.

November 18, 2024

Reading Time: 8 min 

As artificial intelligence technologies develop, managers are striving to reap the benefits. Today’s generative AI tools can aid managers in strategic decision-making and assist with problem-solving in a variety of contexts, ranging from product development to employee conflicts. ChatGPT — a common GenAI tool — is even being used as a debating partner for managerial decision-making processes.

At the same time, interacting with technology as part of a decision-making or problem-solving process is fundamentally different from consulting with humans. AI systems, by design, are focused on efficiency, predictability, and data-driven solutions. This emphasis is where leaders can get into unintended trouble.

Our latest research suggests that when managers interact with GenAI tools to help make decisions, the tools may inadvertently nudge them toward a more rigid and mechanistic approach. Specifically, our study reveals that when managers used ChatGPT to assist with solving a problem related to employee behavior and working conditions, they were more likely to propose control-oriented rather than people-oriented solutions.

For decades, researchers and managerial practitioners have detailed the benefits of human-centric management approaches. Our findings caution that without proper consideration, the use of generative AI tools may risk an unintended return to a more mechanistic and control-based management style. That’s a problem, since research has established that the old command-and-control style of management doesn’t breed employee engagement or trust.

A Management Dilemma: ChatGPT Versus Human Experience

References

1. P.E. Spector, “Perceived Control by Employees: A Meta-Analysis of Studies Concerning Autonomy and Participation at Work,” Human Relations 39, no. 11 (November 1986): 1005-1016; and T.W.H. Ng and D.C. Feldman, “Employee Voice Behavior: A Meta-Analytic Test of the Conservation of Resources Framework,” Journal of Organizational Behavior 33, no. 2 (February 2012): 216-234.

Reprint #:

66231

“The MIT Sloan Management Review is a research-based magazine and digital platform for business executives published at the MIT Sloan School of Management.”

Please visit the firm link to site


You can also contribute and send us your Article.


Interested in more? Learn below.