The Nexus Between Artificial Intelligence and the Behavioral Theory of the Firm

Abstract

The Behavioral Theory of the Firm (BTF; Cyert & March, 1963) has, essentially since its inception, been intimately linked with AI. However, since the original pioneering work by behavioral theorists on the importance of AI for our understanding of the functioning of organizations, great strides have been made in AI technologies. Hence, the time is ripe to reevaluate both the central assumptions of the behavioral theory of the firm and its key implications. Consequently, this panel symposium intends to open up a dialogue about whether and how our understanding of the BTF has changed and, perhaps, how it should still change in response to and in step with advancements in artificial intelligence. The main purpose of this Symposium is to engage a group of panelists in a moderated and interactive discussion on the questions pertaining to the nexus between AI and the BTF. More specifically, the panelists will (1) discuss how – in the light of the technological advances of AI – the BTF has changed and should be further reevaluated, (2) identify challenges and opportunities researchers face in linking AI to behavioral theory, and (3) discuss ways forward. Moreover, this symposium aims to build a network of scholars from different career stages and divisions who share an interest in this topic.