Insight Center Collection The Risks And Rewards Of Ai

This HBR Insight Center explores both the promise and peril of AI, revealing that while advanced algorithms lower the cost of prediction, they increase the value of human judgment. Key articles argue that as AI assumes more decision-support functions, executives must master “Reward Function Engineering”—the discipline of aligning machine actions with organizational goals. Misaligned incentives can lead to perverse outcomes, as illustrated by examples like AI exploiting game mechanics. Ultimately, organizations must blend machine precision with human insight to optimize decision-making, rethinking leadership, employee roles, and strategic execution in an AI-driven economy.