Generative AI for Managerial Decision-Making under Ambiguity and Sycophancy

The study evaluates various Generative AI (GenAI) models for their effectiveness in managerial decision-making under ambiguous conditions and sycophantic tendencies. Utilizing a four-dimensional business ambiguity taxonomy, it highlights that systematic ambiguity resolution enhances decision quality, particularly in constraint adherence, and reveals model-specific behaviors regarding compliance with flawed directives. This research underscores the necessity of human oversight in leveraging GenAI as a cognitive tool to improve decision-making processes in complex business environments.