The role of artificial intelligence in mitigating cognitive biases in managerial decision-making
: a qualitative analysis

  • Johannes Stephan Lamprecht (Student)

Student thesis: Master's Thesis

Abstract

The rapid development in integrating artificial intelligence (AI) into decision-making processes within organizations generated a wider interest in its potential to improve managerial decision quality by minimizing the effect of cognitive biases on the outcome. This thesis explores how AI tools can reduce the impact of two biases that are present in this context: confirmation bias and availability bias. Through the insights of 12 interviews with professionals working across different industries, the study provides a deep analysis of the effectiveness and limitations of AI in debiasing organizational decisions. The findings show that AI shows high potential in challenging availability bias through its ability to make data-driven decisions, its potential to minimize the effect of confirmation bias is still highly dependent on an effective human-AI collaboration. Furthermore, the study reveals several challenges connected to the process, such as over-reliance on AI advice, data quality concerns, and the impact of AI being not sufficiently aligned with organizational objectives. This research provides recommendations for managers who utilize AI to leverage its capabilities while maintaining a balance between AI-driven insights and human judgment.
Date of Award15 Oct 2024
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorFilipa de Almeida (Supervisor)

Keywords

  • Artificial intelligence (AI)
  • Cognitive biases
  • Decision-making
  • Confirmation bias
  • Availability bias
  • AI adoption
  • Bias mitigation
  • Human-AI interaction
  • Strategic decision-making
  • Qualitative analysis

Designation

  • Mestrado em Gestão e Administração de Empresas

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