For nearly a century, management theory has sought to incorporate greater realism concerning the influence exerted by cognitive, emotional, and social impacts on decision-making under uncertainty. Despite near-universal recognition of these behavioral influences, the presumption that ecological rationality is adaptive continues to cast a long shadow, and management theory remains anchored to the assumption that marketplaces are populated with intendedly rational participants. This assumption is, at best, an incomplete rendering of both the decisional environment and the motivational drivers impelling business activity. As the widespread and increasingly sophisticated use of artificial intelligence (AI) – particularly generative AI (Gen AI)– continues to expand its role in shaping managerial and organizational decisions and actions, it is important to assess the extent to which variation-generating, irrational, impulsive, and eristically motivated decisions and actions are at risk of extinction. Thus, the purpose of this inquiry is to challenge the notion that accurate, efficient decision-making is invariably adaptive. We do this by exploring the premise that irrationality is not only useful, but often indispensable to the generation of novel, organization-enhancing variation. Our approach widens the conceptual aperture concerning the motivational mechanisms that lead to decisions, actions, and outcomes, particularly in light of the rapidly escalating commitment to algorithmic decision-making.
