How Artificial Intelligence Reshapes Management Models 
in the Context of Digital Transformation

Yanran Li

doi:10.70711/aitr.v3i7.8869

How Artificial Intelligence Reshapes Management Models in the Context of Digital Transformation

Yanran Li

Abstract

Digital transformation is increasingly characterized by "AI-first" redesign of organizational decision-making, coordination, and
control. Drawing on a lightweight system review (management, information systems, and work/organization literatures) and triangulating
with recent large-scale industry surveys, this paper explains how AI reshapes management models through three core mechanisms: decision
augmentation (humanAI joint judgment), algorithmic coordination (workflow and resource orchestration), and algorithmic accountability
(measurement, auditability, and governance). Evidence from enterprise surveys shows that AI adoption has remained broad and persistent,
while generative AI (GenAI) rapidly expands AI use across functionsraising both performance potential and new managerial risks (e.g., inaccuracy, cybersecurity, opacity). The paper synthesizes these insights into an operating-model lens, specifying design levers (strategy, structure, process controls, people/culture) for scaling AI responsibly. Contributions include a clear mechanism-based explanation of managementmodel change and an actionable governance-oriented blueprint for executives navigating AI-enabled transformation.

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DOI: http://dx.doi.org/10.70711/aitr.v3i7.8869

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