The Deinstitutionalization of Business Support Functions through Artificial Intelligence

Abstract

Technological advances in the field of artificial intelligence offer enormous potential for organizations. In recent years, organizations have leveraged this potential by establishing new business models or adjusting their primary activities. In the meantime, however, the potential for greater efficiency and effectiveness in support functions such as human resource management (HRM), supply chain management (SCM), or financial management (FM) through these technological advances is also increasingly being recognized. We synthesize the current state of research on AI regarding the potentials and diffusion within these support functions. Building upon this, we assess the deinstitutionalization power of AI for altering organizational processes within business support functions and derive implications to harness the full potential of AI across organizations.