This study aims to investigate the ethical and practical implications of delegating decision-making to AI systems, focusing on the necessity for a robust governance framework. Specifically, it examines how autonomy, transparency and accountability within AI governance influence organizational decision-making.
Employing a quantitative survey methodology, this study gathered data from 452 business owners and managers in Indian IT companies. The questionnaire was disseminated using online platforms and departmental communication channels. Structural equation modelling (SEM) was utilized for data analysis, allowing for the examination of relationships among autonomy, transparency, accountability and decision-making.
The findings indicate that autonomy, transparency and accountability significantly impact organizational decision-making processes. Specifically, autonomy and accountability were found to directly influence decision-making, while transparency also played a crucial role. Additionally, social innovation was identified as a significant moderating factor, enhancing the relationship between AI governance and decision-making outcomes.
This research contributes to the existing literature on AI governance by elucidating the critical role of ethical frameworks in organizational decision-making. By incorporating social innovation as a moderating variable, the study offers novel insights into how AI governance can be optimized to enhance decision-making processes. The application of SEM provides a rigorous analytical approach, facilitating a deeper understanding of the interplay between governance dimensions and decision-making outcomes. The findings have practical implications for organizations seeking to implement effective AI governance strategies in their operations.
