Algorithmic management in the workplace

Algorithmic management – the use of software, which may include artificial intelligence (AI), to fully or partially automate tasks traditionally carried out by human managers – has received increased attention in recent years. On the one hand, it has the potential to deliver productivity and efficiency gains as well as greater consistency and objectivity of managerial decisions within firms. On the other hand, there is growing evidence from other studies of its potential detrimental impacts on workers. As policymakers grapple with how to respond to the challenges that algorithmic management presents, additional evidence is needed. Towards this aim, this study draws on a unique survey of over 6 000 firms in six countries: France, Germany, Italy, Japan, Spain and the United States. The survey offers unprecedented insights into the prevalence of algorithmic management, its perceived impacts and firm-level measures to govern its use. The findings show that algorithmic management tools are already commonly used in most countries studied. While managers perceive that algorithmic management often improves the quality of their decisions as well as their own job satisfaction, they also perceive certain trustworthiness concerns with the use of such tools. They cite concerns of unclear accountability, inability to easily follow the tools’ logic, and inadequate protection of workers’ health. It is urgent to examine policy gaps to ensure the trustworthy use of algorithmic management tools.