Machine-Human Collaboration and Business Agility: Impact on Performance

There is a discernible change in the conversations regarding artificial intelligence (AI), with an increasing focus on delving into the real-world consequences of AI. AI promises to provide benefits to firms, but there is uncertainty about the effect of AI-human collaboration (i.e., AI-enabled augmentation) and the specific organizational environment conducive to its optimal use. A survey from 154 U.S. companies was conducted to examine the effects of AI-enabled augmentation on financial performance, and how these effects are realized with the help of two organizational capabilities (i.e., data science competence and business agility). The empirical findings support the proposed research model, demonstrating that both data science competence and AI-enabled augmentation are needed to get business agility, which in turn lead to a major financial performance. This study aims to contribute to the ongoing discourse by examining how AI can both influence and be influenced by the organizational context.