The Challenge of AI Governance for Public Organizations

This chapter examines the use of artificial intelligence (AI) systems by public organizations and the resulting critical challenges of dehumanization and loss of human control. It further identifies core challenges to modern public organizations and modern governance through the lens of Max Weber’s ideal type bureaucracy and Herbert Simon’s administrative behavior including challenges of: (1) a decreased scope of tasks for human bureaucrats, (2) a loss in human managerial control, and (3) an evolving bureaucracy structure, (4) a reshaping of the bounded rationality of agents, (5) value alignment of public organizations, and (6) a changing balance of formal and informal communication. Furthermore, our analysis reveals how understanding and adjusting to the interrelated dynamics of bounded rationality, hierarchy, facts, specialization, and human judgment can help public organizations maintain AI while preserving and reasserting human dignity and control. Finally, we highlight that the theoretical lenses provided by Weber and Simon may diminish in relevancy in the presence of hybrid human and machine bureaucracies.