From service design thinking to the third generation of activity theory: a new model for designing AI-based decision-support systems.

Abstract

The rise of Artificial Intelligence (AI), particularly machine learning, has brought a significant transformation in decision-making (DM) processes within organizations, with AI gradually assuming responsibilities that were traditionally performed by humans. However, as shown by recent findings, the acceptance of AI-based solutions in DM remains a concern as individuals still strongly prefer human intervention. This resistance can be attributed to psychological factors and other trust-related issues. To address these challenges, recent studies show that practical guidelines for user-centered design of AI are needed to promote justified trust in AI-based systems. To this aim, our study bridges Service Design Thinking and the third generation of Activity Theory to create a model which serves as a set of practical guidelines for the user centered design of Multi-Actor AI-based DSS. This model is created through the qualitative study of human activity as a unit of analysis. Nevertheless, it holds the potential for further enhancement through the application of quantitative methods to explore its diverse dimensions more extensively. As an illustrative example, we used a case study in the field of human capital investments, with a particular focus on organizational development, which involves managers, professionals, coaches and other significant actors. As a result, the qualitative methodology employed in our study can be characterized as a "pre-quantitative" investigation. This framework aims at locating the contribution of AI in complex human activity and identifying the potential role of quantitative data in it.