Warning: "continue" targeting switch is equivalent to "break". Did you mean to use "continue 2"? in /var/www/www-root/data/www/modecon.mnau.edu.ua/wp-content/plugins/qtranslate-x/qtranslate_frontend.php on line 497
{"id":22413,"date":"2026-07-29T15:36:37","date_gmt":"2026-07-29T12:36:37","guid":{"rendered":"https:\/\/modecon.mnau.edu.ua\/?p=22413"},"modified":"2026-07-29T16:34:26","modified_gmt":"2026-07-29T13:34:26","slug":"artificial-intelligence-as-a-tool-2","status":"publish","type":"post","link":"https:\/\/modecon.mnau.edu.ua\/en\/artificial-intelligence-as-a-tool-2\/","title":{"rendered":"Varava L., Stets R. Artificial Intelligence as a Tool for Improving Organizational Management: Systematizing AI Applications and the Compensatory Direction"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]<\/p>\n\n\n\n
JEL Classification:<\/strong> M10; M15; D81; D83; O33<\/em><\/td>\nDOI<\/b>: https:\/\/doi.org\/10.31521\/modecon.V57(2026)-01<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

[\/vc_column_text][vc_column_text]Varava Larysa,<\/strong> Doctor of Economic Sciences, Professor, Department of Management and Administration, Kryvyi Rih National University, Kryvyi Rih, Ukraine.<\/p>\n

ORCID:<\/strong> 0000-0003-1069-1645<\/span><\/a>
\ne-mail: <\/strong>lvarava@knu.edu.ua<\/span><\/a><\/p>\n

Stets Roman,<\/strong> PhD Student, Department of Management and Administration, Kryvyi Rih National University, Kryvyi Rih, Ukraine.<\/p>\n

ORCID:<\/strong> 0009-0005-0861-4060<\/span><\/a>
\ne-mail: <\/strong>stets.roman96@gmail.com<\/span><\/a><\/p>\n

Artificial Intelligence as a Tool for Improving Organizational Management: Systematizing AI Applications and the Compensatory Direction<\/strong><\/p>\n

Introduction.<\/i><\/b>Artificial intelligence (AI) is rapidly becoming integrated into management, yet its value is often overstated. AI meaningfully transforms management when it provides capabilities that go beyond classical algorithms. However, the leading integrative frameworks are condition-neutral and do not account for turbulence and involuntary resource loss. This creates a gap that is particularly relevant for Ukrainian enterprises.<\/em><\/p>\n

Purpose. <\/em><\/strong>This study aims to systematize the applications of AI in organizational management, clarify the conditions under which AI genuinely transforms management, develop compensatory strategies, and identify the research gaps left by condition-neutral frameworks. A structured, critical review of international and Ukrainian literature from 2017 to 2026 was conducted using analysis, synthesis, comparison, classification, and typological generalization.<\/em><\/p>\n

Results.<\/em><\/strong> AI creates managerial value when at least one of the following three conditions is met: unstructured input; a substantial reduction in the cost of prediction; or a reconfigurable tool that replaces multiple specialized systems. Five applications of AI are organized along an environmental axis (normal conditions versus turbulence). The key contribution is identifying a compensatory direction whereby AI replaces involuntarily lost capabilities to maintain organizational continuity. This direction provides continuity benefits but introduces new dependencies related to connectivity, energy supply, external vendors, and data control. It is also associated with risks such as lock-in, loss of balance, and erosion of tacit knowledge.<\/em><\/p>\n

Conclusions. <\/em><\/strong>AI improves management by restructuring decision-making rather than through automation alone. Its benefits depend on the task type, the reliable zone of the technology, and complementary investments. For organizations experiencing involuntary capability loss, AI can compensate for the loss, albeit at the cost of increased dependence. The absence of a condition-sensitive and risk-aware framework for such cases is an important area for future research.<\/em><\/p>\n

Keywords: <\/em><\/strong><\/i><\/b>artificial intelligence; organizational management; managerial decision-making; compensatory AI use; organizational resilience; turbulence.<\/em><\/i><\/p>\n

References<\/b>:<\/strong><\/p>\n

    \n
  1. Raisch, S., & Krakowski, S. (2021). Artificial intelligence and management: The automation\u2013augmentation paradox. Academy of Management Review<\/em>, 46(1), 192\u2013210. https:\/\/doi.org\/10.5465\/amr.2018.0072<\/a>.<\/li>\n
  2. Agrawal, A., Gans, J., & Goldfarb, A. (2018). Prediction, judgment, and complexity: A theory of decision making and artificial intelligence<\/em> (NBER Working Paper No. 24243). National Bureau of Economic Research. https:\/\/doi.org\/10.3386\/w24243<\/a>.<\/li>\n
  3. Acemoglu, D., & Restrepo, P. (2019). Automation and new tasks: How technology displaces and reinstates labor. Journal of Economic Perspectives<\/em>, 33(2), 3\u201330. https:\/\/doi.org\/10.1257\/jep.33.2.3<\/a>.<\/li>\n
  4. Shrestha, Y. R., Ben-Menahem, S. M., & von Krogh, G. (2019). Organizational decision-making structures in the age of artificial intelligence. California Management Review<\/em>, 61(4), 66\u201383. https:\/\/doi.org\/10.1177\/0008125619862257<\/a>.<\/li>\n
  5. Hillebrand, L., Raisch, S., & Schad, J. (2025). Managing with artificial intelligence: An integrative framework. Academy of Management Annals<\/em>, 19(1), 343\u2013375. https:\/\/doi.org\/10.5465\/annals.2022.0072<\/a>.<\/li>\n
  6. Brynjolfsson, E., Li, D., & Raymond, L. (2025). Generative AI at work. The Quarterly Journal of Economics<\/em>, 140(2), 889\u2013942. https:\/\/doi.org\/10.1093\/qje\/qjae044<\/a>.<\/li>\n
  7. Dell\u2019Acqua, F., McFowland, E., Mollick, E. R., Lifshitz-Assaf, H., Kellogg, K., Rajendran, S., Krayer, L., Candelon, F., & Lakhani, K. R. (2023). Navigating the jagged technological frontier: Field experimental evidence of the effects of AI on knowledge worker productivity and quality<\/em> (Harvard Business School Working Paper No. 24-013). https:\/\/doi.org\/10.2139\/ssrn.4573321<\/a>.<\/li>\n
  8. Shkrobot, M. (2026). Augmented management: The economic logic of integrating artificial intelligence into managerial decision-making. Problems of Modern Transformations. Series: Economics and Management<\/em>, (25). https:\/\/doi.org\/10.54929\/2786-5738-2026-25-06-02<\/a>.<\/li>\n
  9. Kravchenko, M., & Poliakov, Ye. (2026). A systemic approach to using AI in enterprise business functions and assessing its impact on economic efficiency. Stalyi rozvytok ekonomiky<\/em>, 1(58). https:\/\/doi.org\/10.32782\/2308-1988\/2026-58-95<\/a>.<\/li>\n
  10. Horobchenko, O., Buha, O., & Volkodav, T. (2025). Risk-oriented enterprise management under martial law. Instytut bukhhalterskoho obliku, kontrol ta analiz v umovakh hlobalizatsii<\/em>, (3\u20134). https:\/\/doi.org\/10.35774\/ibo2025.03-04.079<\/a>.<\/li>\n
  11. Ionin, Ye., & Prysich, A. (2025). Implementing digital management in business: Challenges, stages and effective practices. Ekonomika i orhanizatsiia upravlinnia<\/em>, 2(58). https:\/\/doi.org\/10.31558\/2307-2318.2025.2.3<\/a>.<\/li>\n
  12. Maliarchuk, N., & Pacheva, N. (2026). Transformation of HR management functions in IT companies under the influence of artificial intelligence technologies. Stalyi rozvytok ekonomiky<\/em>, 2(59). https:\/\/doi.org\/10.32782\/2308-1988\/2026-59-97<\/a>.<\/li>\n
  13. Afanasiev, Ye. V., & Khoma, V. V. (2024). The use of artificial intelligence in the strategic management of a modern enterprise. Ekonomichnyi analiz<\/em>, 34(4), 67\u201374. https:\/\/doi.org\/10.35774\/econa2024.04.067<\/a>.<\/li>\n
  14. Lozhachevska, O., Varava, L., Fedirets, O., & Shevchenko, V. (2025). Managing organizational and corporate change under uncertainty: A value-oriented approach to project management. Aktualni problemy staloho rozvytku<\/em>, 2(5). https:\/\/doi.org\/10.60022\/2(5)-9S<\/a>.<\/li>\n
  15. Pronko, L., Puzyrova, P., Sobchyshyn, V., Varava, L., Zakharov, D., & Vynohradova, O. (2025). Innovative management of labour potential in the system of digitalization of financial and economic security of the smart economy. Financial and Credit Activity: Problems of Theory and Practice<\/em>, 1(60), 554\u2013569. https:\/\/doi.org\/10.55643\/fcaptp.1.60.2025.4694<\/a>.<\/li>\n
  16. Williams, T. A., Gruber, D. A., Sutcliffe, K. M., Shepherd, D. A., & Zhao, E. Y. (2017). Organizational response to adversity: Fusing crisis management and resilience research streams. Academy of Management Annals<\/em>, 11(2), 733\u2013769. https:\/\/doi.org\/10.5465\/annals.2015.0134<\/a>.<\/li>\n
  17. Kruhlyk, B. (2026). Digital agriculture in Ukraine 2025<\/em>. IT Ukraine Association. https:\/\/itukraine.org.ua\/en\/digital-agriculture-in-ukraine-2025\/<\/a>.<\/li>\n
  18. Ukraine’s precision agriculture grows as war disrupts exports. (2025). Euromaidan Press<\/em>. https:\/\/euromaidanpress.com\/2025\/10\/03\/ukraine-agriculture-digitization-war\/<\/a>.<\/li>\n
  19. NetDragon appoints its first virtual CEO<\/em>. (2022). PR Newswire [Press release]. https:\/\/www.prnewswire.com\/news-releases\/netdragon-appoints-its-first-virtual-ceo-301613062.html<\/a>.<\/li>\n
  20. Ransbotham, S., Kiron, D., Khodabandeh, S., Iyer, S., & Das, A. (2025). The emerging agentic enterprise: How leaders must navigate a new age of AI<\/em>. MIT Sloan Management Review & Boston Consulting Group. https:\/\/sloanreview.mit.edu\/projects\/the-emerging-agentic-enterprise-how-leaders-must-navigate-a-new-age-of-ai\/<\/a>.<\/li>\n
  21. F\u00fcgener, A., Walzner, D. D., & Gupta, A. (2026). Roles of artificial intelligence in collaboration with humans: Automation, augmentation, and the future of work. Management Science<\/em>, 72(1), 538\u2013557. https:\/\/doi.org\/10.1287\/mnsc.2024.05684<\/a>.<\/li>\n<\/ol>\n

    [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Received: <\/strong>19 June 2026<\/p>\n

    \"varava.pdf\"<\/div>
    varava.pdf<\/div><\/div>
    <\/div>
    <\/div>
    Size: <\/span>1,35<\/span><\/div>
    Download Now!<\/a><\/span>162<\/span> Downloads<\/span><\/span><\/div><\/div>
    <\/div><\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n\n\n\n\n
    \n

    How to quote this article?<\/p>\n<\/td>\n<\/tr>\n

    Varava L., Stets R. (2026). Artificial Intelligence as a Tool for Improving Organizational Management: Systematizing AI Applications and the Compensatory Direction. Modern Economics, 57(2026), 7-13. DOI: https:\/\/doi.org\/10.31521\/modecon.V57(2026)-01.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=”.vc_custom_1657628632157{margin-top: 10px !important;}”]<< \u041f\u043e\u0432\u0435\u0440\u043d\u0443\u0442\u0438\u0441\u044f \u0434\u043e \u0437\u043c\u0456\u0441\u0442\u0443<\/a>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/section>","protected":false},"excerpt":{"rendered":"

    [vc_row][vc_column][vc_column_text] JEL Classification: M10; M15; D81; D83; O33 DOI: https:\/\/doi.org\/10.31521\/modecon.V57(2026)-01 [\/vc_column_text][vc_column_text]Varava Larysa, Doctor of Economic Sciences, Professor, Department of Management and Administration, Kryvyi Rih National University, Kryvyi Rih, Ukraine. ORCID: 0000-0003-1069-1645 e-mail: lvarava@knu.edu.ua Stets Roman, PhD Student, Department of Management and Administration, Kryvyi Rih National University, Kryvyi Rih, Ukraine. ORCID: 0009-0005-0861-4060 e-mail: stets.roman96@gmail.com Artificial Intelligence
    Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":13475,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[258],"tags":[259],"class_list":["post-22413","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-57-2026-articles","tag-57-2026"],"_links":{"self":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts\/22413","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/comments?post=22413"}],"version-history":[{"count":3,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts\/22413\/revisions"}],"predecessor-version":[{"id":22599,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts\/22413\/revisions\/22599"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/media\/13475"}],"wp:attachment":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/media?parent=22413"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/categories?post=22413"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/tags?post=22413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}