The Great Power Shift: How Intelligent Choice Architectures Rewrite Decision Rights

As organizations increasingly rely on agentic AI, three structural shifts will require leaders to proactively address decision rights allocations, power, and decision-making practices.

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Incorporating AI agents at scale transforms how enterprises define, design, and deploy decision environments.1 Our research shows that organizations using AI to generate sophisticated choice sets — rather than singular, “best,” or “optimal” solutions — achieve superior outcomes across diverse sectors. These intelligent systems don’t just enhance decision-making; they push organizations to redesign decision rights, accountability frameworks, and power dynamics among decision makers.

Building on choice architecture principles from behavioral economics, our intelligent choice architecture (ICA) framework captures how such increasingly sophisticated systems reshape enterprise decision-making.2 (See “Intelligent Choice Architectures.”) By combining generative and predictive AI capabilities to create, refine, prioritize, and present options, ICAs transcend conventional recommendation engines. As AI agents, ICAs can articulate and explain trade-offs, surface hidden opportunities, and learn from outcomes to refine future choice sets. ICAs mark a decisive shift from using algorithms primarily for task automation efficiencies to deploying AI as an architect of superior decision environments.

Consider a major retail enterprise whose HR department deploys AI to identify emerging talent in sales and merchandising — a strategic imperative. While the AI system proves adept at spotting high-potential candidates in unexpected corners of the organization, it quickly becomes clear that these exceptional workers will remain underappreciated without a new decision rights framework to govern development, transfer, and promotion decisions. Success requires the implementation of a data-driven, collaborative decision architecture that aligns talent development options with management incentives, organizational priorities, and concrete outcomes.

Topics

Strategic Measurement

Strategic Measurement examines the role of key performance indicators (KPIs) as a leadership tool.

In Collaboration With

TCS
More in this series

References

1. In the context of this research, decision environments are dynamic settings in which people and algorithms consider complex information, competing priorities, and constraints to make consequential decisions.

2.M. Schrage and D. Kiron, “Intelligent Choices Reshape Decision-Making and Productivity,” MIT Sloan Management Review, Oct. 29, 2024, https://dev02.mitsmr.io.

3.Jensen, M. “Decision Rights: Who Gives the Green Light?” Harvard Business School Working Knowledge, Aug. 8, 2005, www.library.hbs.edu.

Acknowledgments

We thank each of the following individuals, who were interviewed for this article:

Monica Caldas, global CIO, Liberty Mutual Insurance

Emmanuel Frenehard, chief digital officer, Sanofi

Greg Ulrich, chief data and artificial intelligence officer, Mastercard

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Comment (1)
Stuart Roehrl
I found particularly important your three main points on how ICAs change the landscape of the decision-making process.
      Stuart Roehrl