Automation-augmentation paradox in organizational artificial intelligence technology deployment capabilities; an empirical investigation for achieving simultaneous economic and social benefits

Purpose The purpose of this research study was to understand the simultaneous competitive and social gains of machine learning (ML) and artificial intelligence (AI) usage in organizations. There was a knowledge hiatus regarding the contribution of the deployment of ML and AI technologies and their effects on organizations and society. Design/methodology/approach This study was grounded on the dynamic capabilities (DC) and ML and AI automation-augmentation paradox literature. This research study examined these theoretical perspectives using the response of 239 Indian organizational chief technology officers (CTOs). Partial least square-structural equation modeling (PLS-SEM) path modeling was applied for data analysis. Findings The results indicated that ML and AI technologies organizational usage positively influenced DC initiatives. The findings depicted that DC fully mediated ML and AI-based technologies' effects on firm performance and social performance. Research limitations/implications This study contributed to theoretical discourse regarding the tension between organizational and social outcomes of ML and AI technologies. The study extended the role of DC as a vital strategy in achieving social benefits from ML and AI use. Furthermore, the theoretical tension of the automation-augmentation paradox was explored. Practical implications Organizations deploying ML and AI technologies could apply this study's insights to comprehend the organizational routines to pursue simultaneous competitive benefits and social gains. Furthermore, chief technology executives of organizations could devise how ML and AI technologies usage from a DC perspective could help settle the tension of the automation-augmentation paradox. Social implications Increased ML and AI technologies usage in organizations enhanced DC. They could lead to positive social benefits such as new job creation, increased compensation to skilled employees and greater gender participation in employment. These insights could be derived based on this research study. Originality/value This study was among the first few empirical investigations to provide theoretical and practical insights regarding the organizational and societal benefits of ML and AI usage in organizations because of their DC. This study was also one of the first empirical investigations that addressed the automation-augmentation paradox at the enterprise level.