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AI Is Forcing Companies to Redesign How Decisions Get Made

  • Avi Hammer
  • 7 days ago
  • 3 min read




Artificial intelligence is changing many things inside modern organizations, but not always in the ways people expect.


Most discussions focus on productivity gains, automation, or model capability. Those are real. But beneath the surface, something more fundamental is happening: AI is forcing companies to rethink how decisions actually get made.


And many organizations are discovering that their decision structures were never designed to scale.




The Hidden Constraint: Decision Architecture



In most businesses, decisions evolved organically.


Who approves what.

Where judgment lives.

When escalation happens.

How exceptions are handled.


These systems worked well enough when decisions were slow, manual, and localized. AI changes that dynamic immediately.


When intelligence becomes fast, cheap, and widely accessible, decision-making accelerates—and weaknesses become visible.


Suddenly, questions emerge that didn’t matter before:


  • Who owns AI-driven outcomes?

  • When should a system act autonomously versus defer?

  • How are conflicting recommendations resolved?

  • What happens when AI output disagrees with human judgment?



These are not model questions.

They are organizational design questions.




Why AI Exposes Organizational Fragility



AI doesn’t create chaos on its own.

It reveals it.


When companies plug intelligence into unclear workflows, they experience:


  • Conflicting outputs across teams

  • Paralysis around accountability

  • Over-reliance on automation in some areas, and under-use in others

  • A growing lack of trust in systems that were supposed to help



The issue isn’t intelligence quality.

It’s that decisions were never designed to move at machine speed.




From Task Automation to Decision Flow



Early AI adoption focused on tasks:


  • Writing

  • Summarization

  • Classification

  • Prediction



These were safe entry points. They didn’t force organizations to confront deeper questions.


But as AI moves closer to core operations—finance, operations, compliance, customer interactions—the unit of impact shifts from tasks to decisions.


This is where things get difficult.


Decisions require:


  • Context

  • Constraints

  • Tradeoffs

  • Accountability



And unlike tasks, they can’t be bolted onto existing systems without consequences.




What Leading Organizations Are Quietly Doing Differently



The most effective AI adopters are not rushing to automate every decision.


They are redesigning decision flow.


That includes:


  • Defining which decisions are machine-assisted vs machine-executed

  • Establishing clear ownership for AI-influenced actions

  • Embedding intelligence where decisions already happen, not in parallel tools

  • Designing escalation paths for ambiguity and edge cases



This work is slow.

It’s unglamorous.

And it’s where most of the leverage is.




Why This Shift Is Hard for Mid-Market Companies



Large enterprises can absorb inefficiency with scale.

Small teams can move fast with informal alignment.


Mid-market organizations sit in between.


They are:


  • Too complex for ad-hoc decision making

  • Too lean for large governance teams

  • Under pressure to adopt AI without breaking operations



For them, AI doesn’t just introduce opportunity—it introduces risk.


Without intentional design, intelligence amplifies inconsistency instead of clarity.




The Real Maturity Curve of AI Adoption



The AI adoption curve is not:


  1. Use AI

  2. Automate everything

  3. Replace humans



It looks more like:


  1. Experiment with intelligence

  2. Encounter decision friction

  3. Redesign systems

  4. Then scale automation responsibly



Most organizations are currently between steps two and three.


That’s not a failure.

It’s a transition.




The Long-Term Advantage



In the long run, the companies that benefit most from AI won’t be the ones that moved fastest.


They’ll be the ones that:


  • Took decision design seriously

  • Built systems that support judgment, not bypass it

  • Treated intelligence as a structural layer, not a shortcut



AI doesn’t eliminate the need for good decisions.

It raises the cost of bad ones.




Closing Thought



AI is not just a technology shift.

It’s an organizational one.


As intelligence becomes embedded in daily operations, companies are being asked a harder question than “What can AI do?”


They’re being asked:

Are we designed to operate it?


The answer to that will determine who compounds, and who stalls, as this next phase unfolds.

 
 
 

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