AN ALGORITHMIC SOCIETY AND ITS IMPACT ON THE COMPETITIVENESS OF ORGANIZATIONS

Purpose: This article aims to provide a deeper understanding of how algorithms influence competitive advantage, organizational decision-making, and potential ethical dilemmas. Design/methodology/approach: The primary research assumption is that the integration and use of algorithms significantly affect organizational competitiveness and communication. Algorithms offer opportunities for enhanced efficiency, improved decision-making, and product differentiation, but they also pose challenges related to transparency, organizational dynamics, and ethics. The central research question is: how do algorithms influence the creation and maintenance of competitive advantage, the dynamics of organizational communication, and decision-making processes within organizations? Findings: The research highlights differences in the adoption and use of algorithms (including artificial intelligence) across countries, identifies the most common application areas of generative AI in organizations, and examines cost reduction and revenue growth driven by GenAI implementation. Additionally, the study explores the level of personal understanding of GenAI and its perceived impact on business processes across various industries. Research limitations/implications: The study faces limitations in assessing the nuanced impact of algorithms on human interactions and in adapting findings to diverse industries. Practically, organizations must balance automation with human oversight to ensure ethical and effective decision-making. Navigating these dynamics is critical to fully leveraging the benefits of algorithms while addressing associated risks. Originality/value: This research provides a comprehensive exploration of how algorithms shape organizational dynamics and competitiveness. It offers practical insights into the diverse applications of algorithms and highlights challenges such as transparency and communication dynamics posed by AI integration. By bridging theoretical perspectives with practical implications, the study delivers valuable guidance for organizations adapting to the transformative impact of AI.