This paper presents a systematic literature review on the role of Artificial Intelligence (AI) in hierarchical workplace decision-making, using Agency Theory (AT) as a lens. AI increasingly takes on both principal and agent roles, challenging core AT assumptions such as information asymmetry, risk-sharing, and goal incongruence. Through a systematic literature review of 119 studies across management, operations, and information systems, this study identifies emerging challenges and opportunities AI introduces into principal-agent relationships, revealing governance challenges and the need for adaptive mechanisms. This review provides a foundation for future research and governance frameworks to align human and AI in organizational decision-making.
AI at work: Exploring human-AI interaction through the lens of Agency Theory
Galeazzo A.;Furlan A.;Vinelli A.
2025
Abstract
This paper presents a systematic literature review on the role of Artificial Intelligence (AI) in hierarchical workplace decision-making, using Agency Theory (AT) as a lens. AI increasingly takes on both principal and agent roles, challenging core AT assumptions such as information asymmetry, risk-sharing, and goal incongruence. Through a systematic literature review of 119 studies across management, operations, and information systems, this study identifies emerging challenges and opportunities AI introduces into principal-agent relationships, revealing governance challenges and the need for adaptive mechanisms. This review provides a foundation for future research and governance frameworks to align human and AI in organizational decision-making.
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