Innovation and the Asymptotic Rationality of Artificial Intelligence

Innovation has long been viewed as a process of organizational search in either pre-defined or newly discovered search spaces – a process that now promises to be upended by the increasing prowess of Artificial Intelligence (AI). We present a conceptualization of AI, (bounded) rationality, and innovation, especially untangling the promise and limitations of using AI to attempt radical innovation. Introducing the concept of asymptotic rationality, we outline how AI may remove limitations of human bounded rationality and describe why radical innovation may still never be achievable to AI. We argue that AI may nevertheless increasingly contest human capabilities through procedural emulation, and close by discussing scenarios where the distinction between human- and automated innovation may no longer matter.     «

Innovation has long been viewed as a process of organizational search in either pre-defined or newly discovered search spaces – a process that now promises to be upended by the increasing prowess of Artificial Intelligence (AI). We present a conceptualization of AI, (bounded) rationality, and innovation, especially untangling the promise and limitations of using AI to attempt radical innovation. Introducing the concept of asymptotic rationality, we outline how AI may remove limitations of human...     »