The Janus Face of Artificial Intelligence Feedback: Deployment Versus Disclosure Effects on Employee Performance

Tong et. al. 2021, "The Janus Face of Artificial Intelligence Feedback: Deployment Versus Disclosure Effects on Employee Performance ", Strategic Management Journal, Forthcoming

Fox School of Business Research Paper Forthcoming

Nanyang Business School Research Paper No. 21-40

47 Pages Posted: 8 Jul 2021 Last revised: 22 Nov 2021

See all articles by Siliang Tong

Siliang Tong

Nanyang Business School, Nanyang Technological University

Nan Jia

University of Southern California - Marshall School of Business

Xueming Luo

Temple University

Zheng Fang

Sichuan University - Business School

Date Written: June 25, 2021

Abstract

Companies are increasingly using artificial intelligence (AI) to provide performance feedback to employees, by tracking employee behavior at work, automating performance evaluations, and recommending job improvements. However, this application of AI has provoked much debate. On the one hand, powerful AI data analytics increase the quality of feedback, which may enhance employee productivity (“deployment effect”). On the other hand, employees may develop a negative perception of AI feedback once it is disclosed to them, thus harming their productivity (“disclosure effect”). We examine these two effects theoretically and test them empirically using data from a field experiment. We find strong evidence that both effects coexist, and that the adverse disclosure effect is mitigated by employees’ tenure in the firm. These findings offer pivotal implications for management theory, practice, and public policies.

Keywords: Artificial Intelligence, Employee Productivity, Employee Performance Feedback, Employee Perceptual Bias, Field Experiment, New Technology in Management

Suggested Citation

Tong, Siliang and Jia, Nan and Luo, Xueming and Fang, Zheng, The Janus Face of Artificial Intelligence Feedback: Deployment Versus Disclosure Effects on Employee Performance (June 25, 2021). Tong et. al. 2021, "The Janus Face of Artificial Intelligence Feedback: Deployment Versus Disclosure Effects on Employee Performance ", Strategic Management Journal, Forthcoming, Fox School of Business Research Paper Forthcoming, Nanyang Business School Research Paper No. 21-40, Available at SSRN: https://ssrn.com/abstract=3873901 or http://dx.doi.org/10.2139/ssrn.3873901

Siliang Tong (Contact Author)

Nanyang Business School, Nanyang Technological University ( email )

Singapore, 639798
Singapore

Nan Jia

University of Southern California - Marshall School of Business ( email )

701 Exposition Blvd
Los Angeles, CA California 90089
United States

Xueming Luo

Temple University ( email )

1810 N. 13th Street
Floor 2
Philadelphia, PA 19128
United States

HOME PAGE: http://www.fox.temple.edu/mcm_people/xueming-luo/

Zheng Fang

Sichuan University - Business School ( email )

China

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