Examining the Spectrum of Artificial Intelligence Failures: A Focus on Users’ Point of View

Abstract

Artificial Intelligence AI is increasingly becoming a foundation of competitive planning for contemporary organizations. However, even though the implementation of AI in organizations is a critical intervention that can unlock new forms of value, many of these implementations do not meet the expected outcomes. They may result in substantial financial, operational, and reputational negative consequences. This systematic literature review starts with a sample of 3104 articles from well-reputed journals published between 2010-2024. It aims to examine several questions that surround the occurrence of AI failure in organizations: the reasons behind those failures, the categories of the failures, and the disciplinary areas of the failures. Moreover, customers', employees', and management's points of view are considered in the review to extrapolate the potential consequences of the failure of AI systems. The result demonstrates that the AI breakdown often results from a mixture of technology, organization, and people problems and that different industries exhibit diverce types of failures.