Algorithmic Management: The Role of AI in Managing Workforces

Successful implementation requires new competencies and ethical considerations.

With the help of digital technology, complex managerial tasks, such as the supervision of employees and assessment of job candidates, can now be taken over by machines. While still in its early stages, algorithmic management — the delegation of managerial functions to algorithms in an organization — is becoming a key part of AI-driven digital transformation in companies.

Algorithmic management promises to make work processes more effective and efficient. For example, algorithms can speed up hiring by filtering through large ...

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