AI Agency

61 Pages Posted: Last revised: 11 Feb 2025

See all articles by Mehmet Canayaz

Mehmet Canayaz

Pennsylvania State University - Smeal College of Business

Date Written: January 31, 2025

Abstract

AI agents, or autonomous digital employees, represent a new form of agency within firms. This paper provides an initial exploration of their reliability and cost-effectiveness across different AI workforce designs and degrees of oversight. The findings highlight the potential of AI agents to reduce operational costs, while demonstrating that their added value requires more than intelligence alone—strategic AI workforce design and oversight are also critical. By tracing the actions of AI agents, including their tool usage, reasoning patterns, interactions with firm algorithms, and conversations with each other, the paper identifies key factors shaping their efficiency and limitations.

Keywords: AI Agents, AI Workforce, Agency Problem, Organizational Design

Suggested Citation

Canayaz, Mehmet, AI Agency (January 31, 2025). Available at SSRN: https://ssrn.com/abstract=

Mehmet Canayaz (Contact Author)

Pennsylvania State University - Smeal College of Business ( email )

University Park, PA 16802
United States

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