While the invention of previous general-purpose technologies like steam power and electricity have enabled machines to take over physical tasks, today's digital age marks the rise of artificially intelligent machines that, for the first time, are capable of taking over complex decision-making tasks. In light of this development, this research focuses on the introduction of artificial intelligence (AI) in organizations and explores the conditions under which the consequent human-machine interaction leads to beneficial outcomes. It comprises three papers, namely one theoretical essay that outlines emerging tensions and possible ways to address them, and two empirical papers that analyze consequent human-machine interaction and decision outcomes. This dissertation thereby provides insights that jointly enrich our understanding of AI in organizational settings and contributes to the emerging research agenda on AI, strategy, and human behavior.