PhD Seminar Series: Abhinav Pandey and Yujia Chen

Beyond Black Boxes: Designing and Testing Agentic AI Systems for Strategy

Speaker: Abhinav Pandey (Bocconi University)

Abstract: Existing work on AI and strategy examines the effects of general-purpose models, implicitly assuming that strategists will use whatever tools are available and that human-AI interaction is largely a matter of prompting, complacency, or aversion. Inspired by Herbert Simon’s work on system architecture, we instead adopt a design view in which purposeful AI system design and use—not mere access to generic models—can itself be a dynamic capability and a source of competitive advantage. Building on this perspective, we develop Aristotle, an agentic multiagent AI system for theory-based strategic decision making, and study how it shapes strategists’ reasoning, beliefs, and strategies compared with general AI assistance or no AI assistance. We document the design journey of Aristotle, highlighting design choice trade-offs in strategy framework, human-AI integration, and cost, and then implement a streamlined three-agent version suitable for experimental testing. In a randomized experiment with 976 managers comparing this agentic AI system, general AI (GPT-4o), and a human-only condition, we find that experienced managers achieve quality improvements without confidence inflation, whereas highly educated managers exhibit confidence gains without corresponding quality improvements. We establish user-system-problem fit as a core design dimension requiring alignment between architectural complexity and practitioner expertise. We abductively derive a five-dimensional taxonomy that maps the design space for agentic AI systems and a methodological roadmap that enable researchers and practitioners to experiment with, evaluate, and iteratively improve their AI system design choices.

Compliance Without Consensus: Global Investors, Board Gender Diversity, and Social Scrutiny

Speaker: Yujia Chen (Universidad Carlos III de Madrid)

Abstract: How do globally endorsed governance reforms unfold in organizational contexts where they remain socially contested? We address this question by examining board gender diversity in Japan, a setting characterized by persistent male-dominated norms and limited societal support for women’s leadership. Leveraging the 2013 “Womenomics” reforms and a difference-in-differences design, we show that ownership by the Big Three institutional investors is associated with significant increases in board gender diversity following the reform. These changes reflect substantive organizational adjustments, such as replacing male directors, rather than symbolic compliance. However, we also find that increases in board gender diversity are followed by heightened governance-related scrutiny from media and secondary stakeholders. This scrutiny is not explained by declines in firm performance, earnings reliability, or other governance outcomes. Instead, it is concentrated in male-dominated industries and among highly visible firms, suggesting that public evaluations reflect contested social values rather than governance deterioration.