Daos: A Lens on Ai and Bounded Rationality

This article explores the applicability of the concept of bounded rationality on Artificial Intelligence (AI) actors on various application levels. It contains a conceptual framework derived from AI applications at different operational levels within Decentralized Autonomous Organizations. Despite AI’s potential to significantly augment decision-making processes, I argue that bounded rationality, a concept illustrating the inherent limitations in human decision-making, remains relevant. The article underscores that while AI can mitigate some constraints posed by bounded rationality, it does not eliminate them. I posit that human involvement, insufficient computing power, and inadequate information are factors that sustain the relevance of bounded rationality in AI-augmented decision-making environments.