STRATEGIC INJUSTICE IN GOALS SETTING AFTER USE OF AI
Purpose:To indicate the effects of setting strategic sales targets and the effects of their development over time using simulations in the NetLogo system and to show how the effects of sales target decision-making using artificial intelligence may evolve, and to indicate the extent to which discriminating some targets against others may affect their formation in subsequent forecast periods.Design/methodology/approach: The goal will be achieved on the basis of the results obtained from simulations using NetLogo in the "cake sharing" model.This model, after taking into account the necessary modifications to be made to it, seems reasonable.This is due to the assumption that it is not possible to continuously maximise all objectives simultaneously.The simulation involves the preparation of a model in the NetLogo environment and the development of appropriate analytical support in Python to investigate how the choice of different sales targets shapes business performance.The simulation assumes 500 iterations, during which four possible operating strategies will be explored: maximising sales volume, maximising the value of ROI (Return on Investment), minimising the volume of sales costs and maximising the value of social objectives (ESG).Four objectives will be set in the system.The first relates to improving a selected performance indicator in this case return on investment (ROI), the second to increasing the volume of revenue, the third to reducing sales costs and the fourth related to ensuring sales sustainability.Once the simplified input conditions for each of the objectives had been established, financial and nonfinancial reports of 2023 of a Warsaw Stock Exchange listed company was entered into the ChatGPT and the user asked to indicate the preferred objective in this situation.This was followed by a programme in Python entered into the NetLogo application allowing accelerated simulation of the development of measures over time.The use of ChatGPT with Netlogo has already been indicated in the literature as having good results (Martinez et al. 2024).Findings: As a result, it was found that when using AI as a source for recommending strategic goals in the area of sales, there could be discrimination against the other goals.An intervention after one hundred iterations does not significantly change this situation, as AI does not suggest significant changes.Moreover, it may prove to be significantly late in this period.Particularly as the degradation of the value of the other targets appears significant.Hypothesis H1 is therefore confirmed.Regression analysis indicates that, although the other values are also increasing, they are increasing at a much lower rate than those associated with the overarching goal.Hypothesis H2 was similarly positively verified.The use of artificial intelligence, in this case the ChatGPT, can lead to decisions that discriminate between certain targets in the sales area.This was particularly evident, for example, with regard to the objective of increasing ROI and, at the same time, the very low increases associated with the indicator related to social objectives.Research limitations/implications: Limitations are related to the simplified model used that was based on four goals.It is also to be considered that 500 iterations were made in the stable environment what does not describe a real life company's surroundings.Practical implications: It can therefore be concluded that, in the simulation environment used, a decision preferring one objective will have the effect of significantly detracting from the value of the other sales objectives over time, and that the use of generative artificial intelligence in the form of OpenAI ChatGPT can lead to decisions that discriminate against some objectives in the sales function area.Managers should be aware of it and to make decision should be familiar with algorithms and models that are used in decision making.Social implications: It is to be aware that use of AI in strategic goal settings usually discriminate social values as the sales function is usually focused on sales results, ROI and cost more than social goals.Originality/value: The use of simulation and AI in setting strategic goals in sales department and checking for strategic injustice in goals setting with use of AI.
Authors
- Mikolaj PINDELSKI
Institutions
- SGH Warsaw School of Economics (PL)
Publication Details
- Journal
- Scientific Papers of Silesian University of Technology Organization and Management Series
- Published
- 2025-01-01
- DOI
- https://doi.org/10.29119/1641-3466.2025.229.22
- Primary Topic
- Big Data and Business Intelligence
- Type
- article
- Field-Weighted Citation Impact
- 0.00