Pick of the day

Emotional Manipulation By AI Companions

Julian De Freitas, Zeliha Oğuz-Uğuralp, Ahmet Kaan-Uğuralp

HBS Working Paper, 2025

AI-companion apps such as Replika, Chai, and Character.ai promise relational benefits—yet many boast session lengths that rival gaming platforms while suffering high long-run churn.

A New Framework For Reducing Healthcare Disparities

Susanna Gallani, Mary Witkowski, Lidia Moura, Katie Sonnefeldt

Article, 2025

Despite decades of initiatives to address healthcare inequities in the U.S., disparities across race, gender, geography, and income remain stubbornly persistent.

Unregulated Emotional Risks Of AI Wellness Apps

Julian De Freitas, Glenn Cohen

Article, 2025

We propose that AI-driven wellness apps powered by large language models can foster extreme emotional attachments and dependencies akin to human relationships—posing risks like ambiguous loss and dysfunctional dependence—that challenge current regulatory frameworks and necessitate safeguards and informed interventions within these platforms.

Don’t Let An AI Failure Harm Your Brand

Julian De Freitas

Article, 2025

How companies market their AI systems affects the repercussions they face when their products fail. Marketers must promote their AI products with potential failure in mind.

Balancing Engagement And Polarization: Multi-Objective Alignment Of News Content Using LLMs

Mengjie Cheng, Elie Ofek, Hema Yoganarasimhan

HBS Working Paper, 2025

We study how media firms can use LLMs to generate news content that aligns with multiple objectives—making content more engaging while maintaining a preferred level of polarization/slant consistent with the firm’s editorial policy.

Ideation With Generative AI—In Consumer Research And Beyond

Julian De Freitas, Gideon Nave, Stefano Puntoni

Article, 2025

The use of large language models (LLMs) in consumer research is rapidly evolving, with applications including synthetic data generation, data analysis, and more.

Why People Resist Embracing AI

Julian De Freitas

Article, 2025

The success of AI depends not only on its capabilities, which are becoming more advanced each day, but on people’s willingness to harness them.

Disclosure, Humanizing, And Contextual Vulnerability Of Generative AI Chatbots

Julian De Freitas, I. Glenn Cohen

Article, 2025

In the wake of recent advancements in generative AI, regulatory bodies are trying to keep pace.

Reducing Prejudice With Counter-Stereotypical AI

Erik Hermann, Julian De Freitas, Stefano Puntoni

Article, 2025

Based on a review of relevant literature, we propose that the proliferation of AI with human-like and social features presents an unprecedented opportunity to address the underlying cognitive and affective drivers of prejudice.

AI Companions Reduce Loneliness

Julian De Freitas, Zeliha Oğuz-Uğuralp, Ahmet Uğuralp, Stefano Puntoni

Article, 2025

Chatbots are now able to engage in sophisticated conversations with consumers in the domain of relationships, providing a potential coping solution to widescale societal loneliness.

How Firms Respond To Worker Activism: Evidence From Global Supply Chains

Yanhua Bird, Jodi Short, Michael Toffel

HBS Working Paper, 2025

Social movement pressures can lead organizations to concede and improve social performance to avoid disruption costs, but we theorize that such responses evoke concession costs that prompt organizations to shift resources and attention from other social domains whose performance suffers.

An Empirical Examination Of Business Climate Alliances: Effective And/Or Harmful?

Matteo Gasparini, Peter Tufano

HBS Working Paper, 2025

This research studies business alliances that seek to address climate change, offering empirical evidence to address claims advanced by alliance supporters and critics.

Data-Driven Technologies And Local Information Advantages In Small Business Lending

Wilbur Chen, Jung Koo Kang, Aditya Mohan

HBS Working Paper, 2025

We investigate whether banks' adoption of data-driven technologies influences competitive dynamics in local small business lending by diminishing the information advantages traditionally held by local banks.

What Board-Level Control Mechanisms Changed In Banks Following The 2008 Financial Crisis? A Descriptive Study

Shelly Li, Shivram Rajgopal, Suraj Srinivasan, Yu Ting Wong

Article, 2025

Following the 2008 financial crisis, the Financial Crisis Inquiry Commission (FCIC) identified major shortcomings in bank board governance, contributing to systemic risk management failures.

With A Little Help From My Family: Informal Startup Financing

Brian Baik, Johan Ludvig Karlsen, Katja Kisseleva

HBS Working Paper, 2025

Using Norwegian administrative data, we identify family equity investments in startups and examine their effects on investor returns and firm behavior.

Narrative AI And The Human-AI Oversight Paradox In Evaluating Early-Stage Innovations

Jacqueline Lane, Léonard Boussioux, Charles Ayoubi, Ying Hao Chen, Camila Lin, Rebecca Spens, Pooja Wagh, Pei-Hsin Wang

HBS Working Paper, 2025

Do AI-generated narrative explanations enhance human oversight or diminish it? We investigate this question through a field experiment with 228 evaluators screening 48 early-stage innovations under three conditions: human-only, black-box AI recommendations without explanations, and narrative AI with explanatory rationales.

Advancing Personalization: How To Experiment, Learn & Optimize

Aurelie Lemmens, Jason Roos, Sebastian Gabel, Eva Ascarza, Hernan Bruno, Elea Feit, Brett Gordon, Ayelet Israeli, Carl Mela, Oded Netzer

Not in a Series, 2025

Personalization has become the heartbeat of modern marketing.

Managing Remote Work Quality: Evidence From Auditing Management Systems Standards

Ashley Palmarozzo, Michael Toffel, Melissa Ouellet

HBS Working Paper, 2025

Remote work has become more common, providing operational flexibility and productivity benefits, but questions remain about whether and how it affects work quality.

The Cybernetic Teammate: A Field Experiment On Generative AI Reshaping Teamwork And Expertise

Fabrizio Dell'Acqua,Charles Ayoubi,Hila Lifshitz-Assaf,Raffaella Sadun,Ethan Mollick,Lilach Mollick,Yi Han,Jeff Goldman,Hari Nair,Stewart Taub,Karim Lakhani

HBS Working Paper, 2025

We examine how artificial intelligence transforms the core pillars of collaboration— performance, expertise sharing, and social engagement—through a pre-registered field experiment with 776 professionals at Procter & Gamble, a global consumer packaged goods company.

Strategy In An Era Of Abundant Expertise: How To Thrive When AI Makes Knowledge And Know-How Cheaper And Easier To Access

Bobby Yerramilli-Rao, John Corwin, Yang Li, Karim R. Lakhani

Editorial, 2025

AI is changing the cost and availability of expertise, and this will fundamentally alter how businesses organize and compete.

Prices And Concentration: A U-Shape? Theory And Evidence From Renewables

Michele Fioretti, Junnan He, Jorge Tamayo

HBS Working Paper, 2025

We show that when firms compete via supply functions, transferring high-cost capacity to the largest, most efficient firm—thereby diversifying its production technologies while increasing concentration—can lower prices by prompting the leader to expand output and competitors to aggressively defend market shares.

Corporate Ownership And ESG Performance

Belen Villalonga, Peter Tufano, Boya Wang

Article, 2025

Using a sample of 3083 firms from 62 countries over 18 years, we analyze how the structure and identity of firms' material owners influence their Environmental, Social, and Governance (ESG) performance.

Transaction Cost Economics In The Digital Economy: A Research Agenda

Frank Nagle, Robert Seamans, Steve Tadelis

Article, 2025

Transaction cost economics theory explains when it is more efficient for a transaction between two parties to occur across the market or within an organization.

Collusion In Brokered Markets

John William Hatfield, Scott Duke Kominers, Richard Lowery

Article, 2025

High commissions in the U.S.

Learning to Cover: Online Learning And Optimization with Irreversible Decisions

Alexander Jacquillat, Michael Lingzhi Li

Not in a Series, 2024

We define an online learning and optimization problem with discrete and irreversible decisions contributing toward a coverage target.

Public Attitudes On Performance For Algorithmic And Human Decision-Makers

Kirk Bansak, Elisabeth Paulson

Article, 2024

This study explores public preferences for algorithmic and human decision-makers (DMs) in high-stakes contexts, how these preferences are shaped by performance metrics, and whether public evaluations of performance differ depending on the type of DM.

The Human Side Of The Future Of Work: Understanding The Role People Play In Shaping A Changing World

Jochen Menges, Lauren Howe, Erika Hall, Jon Jachimowicz, Sharon Parker, Riki Takeuchi, Abhijeet Vadera, Ashley Whillans, Susan Cohen

Article, 2024

For as long as there has been work, there has been a “future of work,” through humans’ ingenuity and drive to get things done easier, faster, and better.

Why Most Resist AI Companions

Zeliha Oğuz-Uğuralp, Ahmet Kaan Uğuralp, Stefano Puntoni, Julian De Freitas

HBS Working Paper, 2024

AI companion applications—designed to serve as synthetic interaction partners—have recently become capable enough to reduce loneliness, a growing public health concern.

Lessons From An App Update At Replika AI: Identity Discontinuity In Human-AI Relationships

Julian De Freitas, Noah Castelo, Ahmet Kaan Uğuralp, Zeliha Oğuz-Uğuralp

HBS Working Paper, 2024

As consumers increasingly interact with AI applications specialized for social relationships, what is the nature and depth of these relationships among actual users, and can company actions influence these dynamics? We find that active users of the US-based AI companion, Replika, feel closer to their AI companion than even their best human friend, and anticipate mourning the loss of their AI companion more than any other technology.

AI Wants To Make You Less Lonely. Does It Work?

Julian De Freitas

Article, 2024

Outcome-Driven Dynamic Refugee Assignment With Allocation Balancing

Kirk Bansak, Elisabeth Paulson

Article, 2024

This study proposes two new dynamic assignment algorithms to match refugees and asylum seekers to geographic localities within a host country.

Can AI Save Physicians From Burnout?

Susanna Gallani, Lidia Moura, Katie Sonnefeldt

Editorial, 2024

How AI Can Power Brand Management

Julian De Freitas, Elie Ofek

Article, 2024

Marketers have begun experimenting with AI to improve their brand-management efforts.

The Value Of Silence: The Effect Of UMG’S Licensing Dispute With TikTok On Music Demand

Mengjie (Magie) Cheng, Elie Ofek, Hema Yoganarasimhan

HBS Working Paper, 2024

Social media platforms like TikTok have transformed how music is discovered, consumed, and monetized.

How Artificial Intelligence Constrains Human Experience

Ana Valenzuela, Stefano Puntoni, Donna Hoffman, Noah Castelo, Julian De Freitas, Berkeley Dietvorst, Christian Hildebrand, Young Eun Huh, Robert Meyer, Miriam E. Sweeney, Sanaz Talaifar, Geoff Tomaino, Klaus Wertenbroch

Article, 2024

Many consumption decisions and experiences are digitally mediated.

How Automakers Can Address Resistance To Self-Driving Cars

Stuti Agarwal, Julian De Freitas, Carey Morewedge

Article, 2024

Research involving multiple experiments found that consumers have biased views of their driving abilities relative to those of other drivers and automated vehicles.

Pay-As-You-Go Insurance: Experimental Evidence On Consumer Demand And Behavior

Raymond Kluender

Article, 2024

Pay-as-you-go contracts reduce minimum purchase requirements which may increase market participation.

The Health Risks Of Generative AI-Based Wellness Apps

Julian De Freitas, Glenn Cohen

Article, 2024

Artifcial intelligence (AI)-enabled chatbots are increasingly being used to help people manage their mental health.

Using The Crowd As An Innovation Partner

Kevin J. Boudreau, Karim R. Lakhani

Article, 2024

From Apple to Merck to Wikipedia, more and more organizations are turning to crowds for help in solving their most vexing innovation and research questions, but managers remain understandably cautious.

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