AI management beyond the hype: exploring the co-constitution of AI and organizational context

AI technologies hold great promise for addressing existing problems in organizational contexts, but the potential benefits must not obscure the potential perils associated with AI. In this article, we conceptually explore these promises and perils by examining AI use in organizational contexts. The exploration complements and extends extant literature on AI management by providing a typology describing four types of AI use, based on the idea of co-constitution of AI technologies and organizational context. Building on this typology, we propose three recommendations for informed use of AI in contemporary organizations. First, explicitly define the purpose of organizational AI use. Second, define the appropriate level of transparency and algorithmic management for organizational AI use. Third, be aware of AI’s context-dependent nature.