Integrating perspectives on democratization in industry via multi-agent systems: insights from a firm-based case study

Abstract Advancements in IT-technology are seen to enable the further development of democracy beyond traditional political governance. Besides mobilizing civil society actors through participatory measures, companies themselves are rethinking their opportunities for democratization. Some now invest in pioneering new technologies and promote ‘democratic’ decision-making in the workplace. However, specific challenges arise, including the concentration of market power and the circumvention of employee co-determination. At the same time, small and medium-sized enterprises (SMEs) are deploying innovations such as AI-based decision-support systems to offer new decision-making opportunities. Is there any potential for democratization in companies emerging thereby as well, and if so, in which form? On the one hand, this article raises the question of how aspects of democratization in companies can be realized and presents a conceptual approach for analysing such ambitions. On the other hand, the specific challenges of democratization through digital tools will be explored by analysing a case study from an SME. The key result is that there are options of democratization via Multi-Agent Systems (MAS), but it can only be achieved if key democratic features (representativeness, transparency and fairness) are incorporated into the development and socio-technical implementation process. This ensures that the use of the AI tool not only increases efficiency, but also empowers employees to engage in meaningful participation fostering thereby legitimacy.