The Allocation of Decision Authority to Human and Artificial Intelligence
Abstract
The allocation of decision authority by a principal to either a human agent or an artificial intelligence (AI) is examined.The principal trades off an AI's more aligned choice with the need to motivate the human agent to expend effort in learning choice payoffs.When agent effort is desired, it is shown that the principal is more likely to give that agent decision authority, reduce investment in AI reliability and adopt an AI that may be biased.Organizational design considerations are likely to impact on how AI's are trained.
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This interaction includes clarifying who is authorized to decide what.
“This interaction (1a) includes clarifying who is authorized to decide what (Athey et al. 2020).”
From Keeping the organization in the loop: a socio-technical extension of human-centered artificial intelligence (2023) · cites this paper as Athey et al. 2020
These changes affect organizational practices and are a continuous outcome of other organizational practices that deal with decisions on the distribution of agency between human and AI.
“These changes affect organizational practices and are a continuous outcome of other organizational practices that deal with decisions on the distribution of agency between human and AI (Athey et al. 2020).”
From Keeping the organization in the loop: a socio-technical extension of human-centered artificial intelligence (2023) · cites this paper as Athey et al. 2020
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Herrmann, T., & Pfeiffer, S. (2023) · AI & SOCIETY · doi:10.1007/s00146-022-01391-5 · Cited by 173 · see citing works
“These changes affect organizational practices and are a continuous outcome of other organizational practices that deal with decisions on the distribution of agency between human and AI (Athey et al. 2020).”
BackgroundInfluentialAn Economic Approach to Regulating Algorithms
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Jin, L., Zhao, Q., Fu, S., Cao, F., Hou, B., & Ma, J. (2023) · Frontiers in Oncology · doi:10.3389/fonc.2023.1092478 · Cited by 15 · see citing works
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McLaughlin, B. (2022) · AEA Randomized Controlled Trials · doi:10.1257/rct.10416 · Cited by 7 · see citing works
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On the intersection of analytical sociology and computational social science
Arvidsson, M., Hedström, P., Jarvis, B. F., & Keuschnigg, M. (2025) · Edward Elgar Publishing eBooks · doi:10.4337/9781802207309.00011 · Cited by 5 · see citing works
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The Use of Generative Artificial Intelligence for Business Decision-Making
Mummar, A., Pacheco, A., Saunders, S., Ratliff-Villarreal, L., & Schmitt, A. (2024) · The Pinnacle A Journal by Scholar-Practitioners · doi:10.61643/c16259 · Cited by 1 · see citing works
Sustainable Artificial Intelligence: In Search of Technological Resilience
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Sepasgozar, S. M. E. (2026) · Encyclopedia · doi:10.3390/encyclopedia6100225
- Authors
- Athey, S., Bryan, K., & Gans, J.
- Affiliations
- National Bureau of Economic Research (US)
- Venue
- National Bureau of Economic Research
- Publisher
- National Bureau of Economic Research
- Published
- 2020-01
- OpenAlex
- W4285717267
- Cited by
- 14
- References
- 0
- Citations by year
- 2026: 1 · 2024: 4 · 2023: 2 · 2022: 4 · 2021: 1 · 2020: 2
- Type
- report
- Language
- en
- Open access
- closed
- Locations
- National Bureau of Economic Research (publishedVersion)
- Topics
- Social Sciences › Decision Sciences › Management Science and Operations Research › Game Theory and Applications
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Game Theory and Voting Systems
- Social Sciences › Safety Research › Ethics and Social Impacts of AI
- Keywords
- artificial intelligence, human agents, agency theory, AI alignment, effort incentives, organizational design, AI training data
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