Risks and Challenges of Using AI in Organizational Management

Abstract

Organizations encounter multiple benefits and risks when implementing Artificial Intelligence for their management needs. This study investigates three essential risks linked to AI adoption which are data security flaws and ethical quandaries and biased decision making. The study investigates two main questions regarding AI management risks. Which methods do organizations do organizations employ to lessen these problems? The research demonstrates that AI improves operational effectiveness along with decision capabilities yet generates substantial threats from job loss through displacing employees as well as from discriminatory algorithmic decision systems which do not exhibit sufficient clarity in their decision making. The research findings demonstrate why standardized ethical governance guidelines and regulatory systems matter for reducing AI system's adverse consequences. Organizations need to strike a balance in their AI implementation by implementing responsible integration along with human oversight and ethical participation for established and effective management approaches. CZU: [005.334:004.8]:005.7; JEL: M11 O31