{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,9,11]],"date-time":"2026-09-11T06:07:31Z","timestamp":1789106851160,"version":"build-2803163510"},"reference-count":68,"publisher":"Frontiers Media SA","license":[{"start":{"date-parts":[[2026,9,11]],"date-time":"2026-09-11T00:00:00Z","timestamp":1789084800000},"content-version":"vor","delay-in-days":0,"URL":"https:\/\/creativecommons.org\/licenses\/by\/4.0\/"}],"content-domain":{"domain":["frontiersin.org"],"crossmark-restriction":true},"short-container-title":["Front. Artif. Intell."],"abstract":"<jats:p>As artificial intelligence (AI) becomes deeply embedded in organizational cognition and decision-making, a profound paradox emerges: AI significantly enhances operational efficiency while systematically eroding the generation and retention of innovation drivers. This study introduces the institutional interface as a meso-level analytical lens for examining how specific configurations of AI design choices, human\u2013AI interaction protocols, and organizational norms produce systematic biases. Under the design conditions theorized in this article, these configurations tend to erode innovation drivers through unconscious automatic execution and residual production. This study illuminates a key feature of AI-driven institutional execution\u2014unconscious automatic execution\u2014and deconstructs it into three dimensions: opacity of execution, loss of agency, and diminished reflexivity. It introduces the concept of residuals to capture the cognitive, behavioral, and value-laden elements that deviate from statistical mainstreams or resist quantification and are systematically deprioritized or excluded from organizational awareness. Under specific design conditions and viewed through the three nested interface lenses, AI systems tend to filter residuals across the cognitive, action, and value interfaces, systematically excluding potentially valuable innovations and impoverishing organizational cognitive diversity. This study articulates the conditions under which a self-reinforcing tendency toward efficiency lock-in emerges and theorizes the institutional features\u2014non-optimization zones, outlier pathways, and paradox-balancing roles\u2014that may counteract this drift. Critically, it further reveals the persistent and irreducible dilemmas facing such features (isolation, authority, and evaluation), arguing that they are tensions to be continually managed rather than problems to be solved. Advancing testable theoretical propositions, this article offers new analytical tools and design directions for innovation governance in AI-augmented organizations. It contributes directly to discussions on AI's role in business understanding and managerial decision support, while laying the conceptual foundation for a broader research program on the learning and governance of AI-augmented organizations.<\/jats:p>","DOI":"10.3389\/frai.2026.1864238","type":"journal-article","created":{"date-parts":[[2026,9,11]],"date-time":"2026-09-11T05:29:54Z","timestamp":1789104594000},"update-policy":"https:\/\/doi.org\/10.3389\/crossmark-policy","source":"Crossref","is-referenced-by-count":0,"title":["The paradox of efficiency: institutional interfaces, residuals, and the erosion of innovation drivers in AI-augmented organizations"],"prefix":"10.3389","volume":"9","author":[{"given":"Tianyuan","family":"Yang","sequence":"first","affiliation":[{"name":"College of Management, Hebei GEO University","place":["Shijiazhuang, China"]},{"name":"Strategy and Management Base of Mineral Resources in Hebei Province, Hebei GEO University","place":["Shijiazhuang, China"]}],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"1965","published-online":{"date-parts":[[2026,9,11]]},"reference":[{"key":"B1","doi-asserted-by":"publisher","first-page":"34","DOI":"10.2478\/jec-2025-0003","article-title":"The role of exploration, exploitation and dynamic capabilities: South Korean entertainment firms' proactive response strategies to the COVID-19 pandemic","volume":"22","author":"Ahn","year":"2025","journal-title":"Econ. Cult"},{"key":"B2","doi-asserted-by":"publisher","first-page":"1659","DOI":"10.3390\/bs15121659","article-title":"A paradox of fit: how job complexity shapes AI self-efficacy and AI adoption through a curvilinear mechanism","volume":"15","author":"Akben","year":"2025","journal-title":"Behav. Sci"},{"key":"B3","doi-asserted-by":"publisher","first-page":"239","DOI":"10.1108\/EBR-08-2022-0163","article-title":"Paradoxical leader behavior and leader effectiveness: moderating role of structural and job-related uncertainty","volume":"35","author":"Batool","year":"2023","journal-title":"Eur. Bus. Rev"},{"key":"B4","doi-asserted-by":"publisher","first-page":"771","DOI":"10.1007\/s43681-022-00138-8","article-title":"AI bias: exploring discriminatory algorithmic decision-making models and the application of possible machine-centric solutions adapted from the pharmaceutical industry","volume":"2","author":"Belenguer","year":"2022","journal-title":"Ai Ethics"},{"key":"B5","doi-asserted-by":"publisher","first-page":"1571698","DOI":"10.3389\/frai.2025.1571698","article-title":"Is AI a functional equivalent to expertise in organizations and decision-making? Opportunities and pitfalls for AI in the context of just transitions","volume":"8","author":"Billi","year":"2025","journal-title":"Front. Artif. Intell"},{"key":"B6","doi-asserted-by":"publisher","first-page":"203","DOI":"10.1016\/j.jik.2020.07.003","article-title":"Organizational ambidexterity and competitive advantage: the role of strategic agility in the exploration-exploitation paradox","volume":"6","author":"Clauss","year":"2021","journal-title":"J. Innov. Knowl"},{"key":"B7","doi-asserted-by":"publisher","first-page":"128","DOI":"10.2307\/2393553","article-title":"Absorptive capacity: a new perspective on learning and innovation","volume":"35","author":"Cohen","year":"1990","journal-title":"Admin. Sci. Q"},{"key":"B8","doi-asserted-by":"publisher","first-page":"146488","DOI":"10.1016\/j.jclepro.2025.146488","article-title":"Can (A)I help you measure your circularity? An AI-driven and collaborative framework for strategic KPI definition","volume":"524","author":"Corsini","year":"2025","journal-title":"J. Cleaner Prod"},{"key":"B9","doi-asserted-by":"publisher","first-page":"114","DOI":"10.1037\/xge0000033","article-title":"Algorithm aversion: people erroneously avoid algorithms after seeing them err","volume":"144","author":"Dietvorst","year":"2015","journal-title":"J. Exp. Psychol. Gen"},{"key":"B10","first-page":"3","article-title":"\u201cInterest and agency in institutional theory,\u201d","volume-title":"Institutional Patterns and Organizations: Culture and Environment","author":"DiMaggio","year":"1988"},{"key":"B11","doi-asserted-by":"crossref","first-page":"1","DOI":"10.24251\/HICSS.2022.723","article-title":"\u201cStructuring the quest for strategic alignment of artificial intelligence (AI): a taxonomy of the organizational business value of AI use cases,\u201d","volume-title":"Proceedings of the 55th Hawaii international conference on system sciences","author":"Engel","year":"2022"},{"key":"B12","doi-asserted-by":"publisher","first-page":"1145","DOI":"10.1108\/JOCM-02-2025-0086","article-title":"A paradox perspective on early AI adoption: understanding temporal and relational tensions","volume":"38","author":"Engstr\u00f6m","year":"2025","journal-title":"J. Organ. Change Manag"},{"key":"B13","doi-asserted-by":"publisher","first-page":"62","DOI":"10.1016\/j.infoandorg.2018.02.005","article-title":"Working and organizing in the age of the learning algorithm","volume":"28","author":"Faraj","year":"2018","journal-title":"Inf. Organ"},{"key":"B14","doi-asserted-by":"publisher","first-page":"1272823","DOI":"10.3389\/frai.2023.1272823","article-title":"Revisiting the role of HR in the age of AI: bringing humans and machines closer together in the workplace","volume":"6","author":"Fenwick","year":"2024","journal-title":"Front. Artif. Intell"},{"key":"B15","doi-asserted-by":"publisher","first-page":"13151","DOI":"10.52783\/jisem.v10i60s.13151","article-title":"Reverse-engineering black-BoxAI decisions for regulatory compliance: a Cloud-Native explainability platform for financial systems","volume":"10","author":"Gaddapuri","year":"2025","journal-title":"J. Inf. Syst. Eng. Manag."},{"key":"B16","doi-asserted-by":"publisher","first-page":"125","DOI":"10.5465\/amp.2016.0138","article-title":"Serendipity arrangements for exapting science-based innovations","volume":"32","author":"Garud","year":"2018","journal-title":"Acad. Manag. Perspect"},{"key":"B17","volume-title":"Case Studies and Theory Development in the Social Sciences","author":"George","year":"2005"},{"key":"B18","volume-title":"The Constitution of Society: Outline of the Theory of Structuration.","author":"Giddens","year":"1984"},{"key":"B19","doi-asserted-by":"publisher","first-page":"1272102","DOI":"10.3389\/frai.2024.1272102","article-title":"Human-centered AI through employee participation","volume":"7","author":"Haipeter","year":"2024","journal-title":"Front. Artif. Intell"},{"key":"B20","doi-asserted-by":"publisher","first-page":"100686","DOI":"10.1016\/j.modpat.2024.100686","article-title":"Ethical and bias considerations in artificial intelligence\/machine learning","volume":"38","author":"Hanna","year":"2024","journal-title":"Mod. Pathol"},{"key":"B21","doi-asserted-by":"publisher","first-page":"73","DOI":"10.1111\/johs.70027","article-title":"AI efficiency versus human empathy: a paradox of AI and human agents in service support interactions","volume":"39","author":"Hasan","year":"2025","journal-title":"Sociol. Lens"},{"key":"B22","doi-asserted-by":"publisher","first-page":"377","DOI":"10.1007\/s11846-024-00748-y","article-title":"Consumer responses to human-AI collaboration at organizational frontlines: strategies to escape algorithm aversion in content creation","volume":"19","author":"Haupt","year":"2024","journal-title":"Rev. Manag. Sci"},{"key":"B23","doi-asserted-by":"publisher","first-page":"103700","DOI":"10.1016\/j.jretconser.2023.103700","article-title":"How does AI technology integration affect employees' proactive service behaviors? A transactional theory of stress perspective","volume":"77","author":"Huang","year":"2024","journal-title":"J. Retail. Consum. Serv"},{"key":"B24","doi-asserted-by":"publisher","first-page":"194","DOI":"10.1038\/35058500","article-title":"Computational modelling of visual attention","volume":"2","author":"Itti","year":"2001","journal-title":"Nat. Rev. Neurosci"},{"key":"B25","doi-asserted-by":"publisher","first-page":"18","DOI":"10.1007\/s13162-020-00161-0","article-title":"Designing conceptual articles: four approaches","volume":"10","author":"Jaakkola","year":"2020","journal-title":"AMS Rev."},{"key":"B26","doi-asserted-by":"publisher","first-page":"3528","DOI":"10.3390\/math13213528","article-title":"Time-series recommendation quality, algorithm aversion, and data-driven decisions: a temporal human\u2013AI interaction perspective","volume":"13","author":"Jiang","year":"2025","journal-title":"Mathematics"},{"key":"B27","doi-asserted-by":"publisher","first-page":"366","DOI":"10.5465\/annals.2018.0174","article-title":"Algorithms at work: the new contested terrain of control","volume":"14","author":"Kellogg","year":"2020","journal-title":"Acad. Manag. Ann"},{"key":"B28","doi-asserted-by":"publisher","first-page":"371","DOI":"10.1108\/OIR-02-2025-0115","article-title":"Framing the digital self: development and validation of the social media AI filter scale","volume":"50","author":"Ku\u015fci","year":"2026","journal-title":"Online Inf. Rev"},{"key":"B29","doi-asserted-by":"crossref","first-page":"150","DOI":"10.1145\/3768292.3770375","article-title":"\u201cYour AI, not your view: the bias of LLMs in investment analysis,\u201d","volume-title":"Proceedings of the 6th ACM International Conference on AI in Finance","author":"Lee","year":"2025"},{"key":"B30","doi-asserted-by":"publisher","first-page":"483","DOI":"10.1108\/AAAJ-11-2017-3223","article-title":"Control and empowerment as an organising paradox: implications for management control systems","volume":"32","author":"Lewis","year":"2019","journal-title":"Acc. Audit. Acc. J"},{"key":"B31","doi-asserted-by":"publisher","first-page":"1069","DOI":"10.1080\/13504851.2023.2301462","article-title":"Managing the exploitation\/exploration paradox: the role of digital transformation","volume":"32","author":"Li","year":"2024","journal-title":"Appl. Econ. Lett"},{"key":"B32","doi-asserted-by":"publisher","first-page":"5265","DOI":"10.1080\/10447318.2025.2544006","article-title":"When usefulness fuels fear: the paradox of generative AI dependence and the mitigating role of AI literacy","volume":"42","author":"Liu","year":"2025","journal-title":"Int. J. Hum. Comput. Interact"},{"key":"B33","doi-asserted-by":"publisher","first-page":"603","DOI":"10.1007\/s43681-022-00143-x","article-title":"Defining organizational AI governance","volume":"2","author":"M\u00e4ntym\u00e4ki","year":"2022","journal-title":"AI Ethics"},{"key":"B34","doi-asserted-by":"publisher","first-page":"71","DOI":"10.1287\/orsc.2.1.71","article-title":"Exploration and exploitation in organizational learning","volume":"2","author":"March","year":"1991","journal-title":"Organ. Sci"},{"key":"B35","doi-asserted-by":"publisher","first-page":"102908","DOI":"10.1016\/j.ijinfomgt.2025.102908","article-title":"Dynamics of user engagement: AI mastery goal and the paradox mindset in AI-employee collaboration","volume":"83","author":"Marvi","year":"2025","journal-title":"Int. J. Inf. Manag"},{"key":"B36","doi-asserted-by":"publisher","first-page":"39","DOI":"10.28945\/5078","article-title":"The impact of artificial intelligence on workers' skills: upskilling and reskilling in organisations","volume":"26","author":"Morandini","year":"2023","journal-title":"Informing Sci J"},{"key":"B37","doi-asserted-by":"publisher","first-page":"1729797","DOI":"10.3389\/frai.2026.1729797","article-title":"Comparative analysis of strategic vs. computational thinking in management","volume":"9","author":"Nyenno","year":"2026","journal-title":"Front. Artif. Intell"},{"key":"B38","doi-asserted-by":"publisher","first-page":"174","DOI":"10.1145\/196734.196745","article-title":"Technological frames","volume":"12","author":"Orlikowski","year":"1994","journal-title":"ACM Trans. Inf. Syst"},{"key":"B39","doi-asserted-by":"publisher","first-page":"404","DOI":"10.1287\/orsc.11.4.404.14600","article-title":"Using technology and constituting structures: a practice lens for studying technology in organizations","volume":"11","author":"Orlikowski","year":"2000","journal-title":"Organ. Sci"},{"key":"B40","volume-title":"The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies.","author":"Page","year":"2007"},{"key":"B41","doi-asserted-by":"publisher","first-page":"551","DOI":"10.1080\/09593969.2024.2312892","article-title":"Towards innovation capability in retail services: managing the tensions of exploration and exploitation","volume":"34","author":"Paredes","year":"2024","journal-title":"Int. Rev. Retail Distrib. Consum. Res"},{"key":"B42","first-page":"1505","article-title":"\u201cModeling and managing collective cognitive convergence,\u201d","volume-title":"Proceedings of the 7th international joint conference on autonomous agents and multiagent systems (AAMAS 2008) Vol. 3","author":"Parunak","year":"2008"},{"key":"B43","doi-asserted-by":"publisher","first-page":"598","DOI":"10.62311\/nesx\/rphcr20","article-title":"Auditing black-box AI systems using counterfactual explanations","volume":"5","author":"Pasupuleti","year":"2025","journal-title":"IJAIRI"},{"key":"B44","doi-asserted-by":"publisher","first-page":"136","DOI":"10.5406\/21520542.36.2.03","article-title":"Public trust, institutional legitimacy, and the use of algorithms in criminal justice","volume":"36","author":"Purves","year":"2022","journal-title":"Public Aff. Q"},{"key":"B45","doi-asserted-by":"publisher","first-page":"477","DOI":"10.1038\/s41586-019-1138-y","article-title":"Machine behaviour","volume":"568","author":"Rahwan","year":"2019","journal-title":"Nature"},{"key":"B46","doi-asserted-by":"publisher","first-page":"192","DOI":"10.5465\/amr.2018.0072","article-title":"Artificial intelligence and management: the automation\u2013augmentation paradox","volume":"46","author":"Raisch","year":"2021","journal-title":"Acad. Manag. Rev"},{"key":"B47","doi-asserted-by":"publisher","DOI":"10.1007\/s13347-024-00758-4","article-title":"Filter bubbles and the unfeeling: how AI for social media can foster extremism and polarization","author":"Rodilosso","year":"2024","journal-title":"Philos. Technol"},{"key":"B48","doi-asserted-by":"publisher","first-page":"261","DOI":"10.1108\/JMH-09-2023-0097","article-title":"New institutional theory and AI: toward rethinking of artificial intelligence in organizations","volume":"31","author":"Rudko","year":"2024","journal-title":"J. Manag. Hist"},{"key":"B49","first-page":"80","article-title":"\u201cArtificial intelligence in project management: impacts on efficiency, innovation & competitive edge,\u201d","author":"Saxena","year":"2024"},{"key":"B50","doi-asserted-by":"publisher","first-page":"547","DOI":"10.1177\/0170840621993238","article-title":"Inter-Organizational Paradox Management: how national business systems affect responses to paradox along a global value chain","volume":"43","author":"Schrage","year":"2021","journal-title":"Organ. Stud"},{"key":"B51","doi-asserted-by":"publisher","first-page":"50","DOI":"10.32038\/jbso.2025.14.04","article-title":"Cognitive machines and cultural shifts: how AI redefines organizational development and consulting practice","volume":"14","author":"Scoggin","year":"2025","journal-title":"Int. J. Behav. Stud. Organ"},{"key":"B52","doi-asserted-by":"publisher","first-page":"103174","DOI":"10.1016\/j.im.2019.103174","article-title":"Machines as teammates: a research agenda on AI in team collaboration","volume":"57","author":"Seeber","year":"2020","journal-title":"Inf. Manag"},{"key":"B53","doi-asserted-by":"publisher","first-page":"381","DOI":"10.5465\/AMR.2011.59330958","article-title":"Toward a theory of paradox: a dynamic equilibrium model of organizing","volume":"36","author":"Smith","year":"2011","journal-title":"Acad. Manag. Rev"},{"key":"B54","doi-asserted-by":"publisher","first-page":"211","DOI":"10.1111\/ijmr.12349","article-title":"Exploring social enterprise legitimacy within ecosystems from an institutional approach: a systematic literature review and research agenda","volume":"26","author":"Spanuth","year":"2023","journal-title":"Int. J. Manag. Rev"},{"key":"B55","doi-asserted-by":"publisher","first-page":"571","DOI":"10.2307\/258788","article-title":"Managing legitimacy: strategic and institutional approaches","volume":"20","author":"Suchman","year":"1995","journal-title":"Acad. Manag. Rev"},{"key":"B56","doi-asserted-by":"publisher","DOI":"10.1108\/JKM-02-2025-0252","article-title":"Hybrid cognitive authority and algorithmic subjectivity: rethinking knowledge management in AI-driven communication","author":"Sun","year":"2025","journal-title":"J. Knowl. Manag"},{"key":"B57","doi-asserted-by":"publisher","first-page":"12822","DOI":"10.48084\/etasr.6641","article-title":"Advanced fraud detection in blockchain transactions: an ensemble learning and explainable AI approach","volume":"14","author":"Taher","year":"2024","journal-title":"Eng. Technol. Appl. Sci. Res"},{"key":"B58","doi-asserted-by":"crossref","DOI":"10.1093\/acprof:oso\/9780199601936.001.0001","volume-title":"The Institutional Logics Perspective: A New Approach to Culture, Structure and Process","author":"Thornton","year":"2012"},{"key":"B59","volume-title":"Guide to Methods for Students of Political Science.","author":"Van Evera","year":"1997"},{"key":"B60","doi-asserted-by":"publisher","first-page":"161","DOI":"10.1108\/AJB-01-2025-0014","article-title":"Intuition or artificial intelligence? When do decision-makers rely on AI decision-aids for ill-structured problems","volume":"40","author":"Vincent","year":"2025","journal-title":"Am. J. Bus"},{"key":"B61","doi-asserted-by":"publisher","first-page":"275","DOI":"10.1002\/jsc.2578","article-title":"Cognitive profiles of strategic decision-makers: implications for exploration\u2013exploitation strategies","volume":"33","author":"Vla\u0161i\u0107","year":"2024","journal-title":"Strateg. Change"},{"key":"B62","doi-asserted-by":"publisher","first-page":"1635246","DOI":"10.3389\/frai.2025.1635246","article-title":"The innovation paradox in human-AI symbiosis: ambidextrous effects of AI technology adoption on innovative behavior","volume":"8","author":"Wang","year":"2025","journal-title":"Front. Artif. Intell"},{"key":"B63","doi-asserted-by":"publisher","first-page":"3529","DOI":"10.1109\/JBHI.2022.3157877","article-title":"A multimodal AI system for out-of-distribution generalization of seizure identification","volume":"26","author":"Yang","year":"2022","journal-title":"IEEE J. Biomed. Health Inform"},{"key":"B64","doi-asserted-by":"publisher","first-page":"1175","DOI":"10.1007\/s10490-022-09843-8","article-title":"Responsible innovation in emerging markets' SMEs: the role of alliance learning and absorptive capacity","volume":"41","author":"Zahoor","year":"2022","journal-title":"Asia Pac. J. Manag"},{"key":"B65","doi-asserted-by":"publisher","first-page":"538","DOI":"10.5465\/amj.2012.0995","article-title":"Paradoxical leader behaviors in people management: antecedents and consequences","volume":"58","author":"Zhang","year":"2015","journal-title":"Acad. Manag. J"},{"key":"B66","doi-asserted-by":"publisher","first-page":"351","DOI":"10.1080\/09585192.2024.2444325","article-title":"Navigating algorithmic paradox management: the role of workplace game engagement and regulatory focus","volume":"36","author":"Zhang","year":"2025","journal-title":"Int. J. Hum. Resour. Manag"},{"key":"B67","doi-asserted-by":"publisher","first-page":"249","DOI":"10.1007\/s42454-025-00083-x","article-title":"Designing human-centric intelligent systems in aviation: applications of artificial cognitive systems, AI-enhanced investigations, and immersive eVTOL simulation training","volume":"7","author":"Ziakkas","year":"2025","journal-title":"Hum. Intell. Syst. Integr"},{"key":"B68","doi-asserted-by":"publisher","first-page":"305","DOI":"10.1016\/j.jbusres.2019.01.028","article-title":"An analysis of process-tracing research on consumer decision-making","volume":"111","author":"Zuschke","year":"2020","journal-title":"J. Bus. Res"}],"container-title":["Frontiers in Artificial Intelligence"],"original-title":[],"link":[{"URL":"https:\/\/www.frontiersin.org\/articles\/10.3389\/frai.2026.1864238\/full","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2026,9,11]],"date-time":"2026-09-11T05:29:57Z","timestamp":1789104597000},"score":1,"resource":{"primary":{"URL":"https:\/\/www.frontiersin.org\/articles\/10.3389\/frai.2026.1864238\/full"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2026,9,11]]},"references-count":68,"alternative-id":["10.3389\/frai.2026.1864238"],"URL":"https:\/\/doi.org\/10.3389\/frai.2026.1864238","relation":{},"ISSN":["2624-8212"],"issn-type":[{"value":"2624-8212","type":"electronic"}],"subject":[],"published":{"date-parts":[[2026,9,11]]},"article-number":"1864238"}}