COGNITIVE ARBITRAGE: THE OUTSOURCING OF INTELLIGENCE

Artificial intelligence (AI) is disrupting industry and potentially threatening to replace humans at work. In this article, we offer a strategy to ensure that executive decision-makers are given the tools to combine the best of human skills with AI, both preserving human dignity and enhancing organizational achievement. We propose a decision-making framework, the Arbitrage-Enhancement Decision Grid (AEDG), that enables organization leaders to determine the optimum human and intelligent machine collaboration to improve workforce performance. The framework recognizes the inevitable adoption of technology innovation, in conjunction with an organization’s need to balance human performance and competitive objectives. The authors then advance an actionable roadmap for developing human workforce and intelligent machine competencies and skills, the Human Resource-Artificial Intelligence Collaboration (HRAIC) framework that complements the decision-making outcomes of the AEDG.