Abstract

Artificial Intelligence (AI) is a growing aspect of organisational contexts, affecting the way that managers make decisions, and changing the way of traditional decision-making to augmented intelligence. In this study, the focus is on the human–AI collaboration to improve managerial effectiveness, particularly the use of AI systems to assist, not displace, human decision-making in complex scenarios. With augmented intelligence, managers can harness the power of AI insights, predictive analytics, and automation of repetitive tasks, yet still maintain important human attributes like intuition, ethics, and context.The study is based on the premise that in modern organisations, effective decision-making is a combination of data-driven intelligence and human expertise. AI technologies can analyze large quantities of structured and unstructured data quickly, extract patterns and trends, and detect anomalies that might not be apparent to human decision-makers. But sometimes, the managerial decisions need to be interpreted in regard to the specific organisational, cultural, and ethical contexts, and this is where the importance of human oversight persists. This study explores the benefits of human–AI collaboration in improving managerial decision-making accuracy, alleviating cognitive load, and achieving quicker decisions in today’s rapidly evolving business landscape. It also explores the need for trust, transparency, and explainability in AI systems, which play an important role in managerial readiness to accept the AI-generated recommendations. Additionally, the study discusses the potential pitfalls of AI dependence, such as future human reliance on algorithms and the possibility of biases in them. This study aims to integrate the literature from various fields, such as artificial intelligence, decision-making theory, and organizational behaviour, to suggest a hybrid managerial approach that combines the benefits of AI with human decision-making, where AI serves as an advisory tool rather than a fully autonomous decision maker. The results support this debate about digital transformation and the impact of AI on the future of work, and give organisations a set of points on which to focus when investing in their technological capabilities, as well as in the skills of their staff. Finally, the study suggests that the transition from AI to augmented intelligence is a paradigm shift in how organizations manage, as it focuses on how human intelligence and AI can complement each other to enhance organizational performance and strategic decisions.