The Human-AI Substitution Principle: When will you be replaced by AI in your organization?
Artificial Intelligence (AI) is rapidly transforming organizations, raising a fundamental organizational and economic question: when will a human employee be replaced by AI? We present an analytical model for studying Human--AI Task Allocation (HAT) in hierarchical organizations. A central feature of the HAT model is that it formally encodes the economic asymmetry between human skill acquisition and AI capability scaling. The HAT model allows us to derive how risk-adjusted costs, skills, organizational depth, deployment scale, strategic adaptation, and risk jointly determine when, where, why, and under what structural conditions human--AI replacement occurs. A key result is the Human--AI ...
| Authors | Bonny Banerjee, Shreya Singh |
|---|---|
| Primary category | cs.AI |
| Published | 22 July 2026 |
| Last updated at source | 12 August 2026 |
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