Recent advances in artificial intelligence (AI) technologies have introduced new challenges related to privacy, transparency, and accountability, which have important implications for managerial decision-making. Although prior research has examined the adoption of AI in supply chain management, limited attention has been paid to how responsible AI interacts with managers' cognitive flexibility to shape organisational foresight. Drawing on Transaction Cost Economics, this study examines the combined effects of implementing responsible AI governance and leadership-enacted organisational control on the development of organisational foresight. This study contributes to organisational foresight research by explaining how the responsible implementation of responsible AI governance enhances organisations' ability to anticipate and interpret future developments through managerial cognitive flexibility. This research highlights responsible AI as a mechanism for balancing automation and human judgment, reinforcing the importance of human-centric governance in data-driven decision environments. Organisations should implement responsible AI alongside enabling leadership practices that encourage autonomy, experimentation, and reflective interpretation, as excessive control can undermine the cognitive flexibility necessary for developing organisational foresight. • Responsible AI improves foresight in supply chain finance contexts. • AI governance reduces uncertainty, supporting future-oriented decisions. • Excessive control constrains learning and future-oriented sensemaking. • Responsible AI drives organisational foresight through cognitive flexibility.
Awan et al. (Thu,) studied this question.