From Compliance to Strategy: How Boards Can Lead in Cybersecurity Resilience
Cybersecurity has become one of the most pressing issues for boardrooms today, with 88% of directors citing it as a key focus, according to the...
Humans and machines working together. Better decisions. Faster execution. Smarter outcomes.
In practice, this is where many organizations quietly struggle.
AI failures can stem from many sources — misuse, malfunction, human error, or even model collapse. Those risks are real, and we will address them later in this series.
In this article, however, we focus on a different and often underestimated failure mode: how humans currently misunderstand the how, what, why, where, and risk of collaborating with AI in everyday work. Breakdowns emerge not from dramatic incidents, but from routine interaction — through subtle misalignment of trust, judgment, escalation, and accountability as people work alongside increasingly capable AI systems.
This article explores where human–AI collaboration most commonly breaks down, why these failures are hard to see, and why Human Risk Management and security leaders should treat collaboration itself as a core risk surface — not a soft skills problem.
On paper, human–AI collaboration looks straightforward. AI processes vast amounts of data at speed and scale; humans bring judgment, context, ethics, and experience. In theory, each compensates for the other’s limitations, and outcomes improve.
That promise is real — and it is also where many organizations get lulled into a false sense of simplicity. It rests on an assumption that rarely holds at scale: that collaboration between humans and AI is intentionally designed, rather than implicitly assumed to work itself out in the flow of day‑to‑day operations.
Most organizations do not design collaboration. They assume it will emerge.
Human AI Collaboration that isn’t designed becomes risk that isn’t visible.
Across industries, failure patterns repeat — a finding supported by research from MIT Sloan Management Review, Gartner, and BCG, which consistently shows that AI initiatives struggle not because models fail, but because decision rights, verification behaviors, incentives, and human–system interaction are left implicit or inconsistently applied. They are rarely dramatic — and that is precisely the problem.
AI systems often present outputs with speed, fluency, and apparent certainty. Humans are cognitively wired to trust confident systems — especially under pressure, a well-documented effect in cognitive psychology and human–automation research often referred to as automation bias (described by researchers such as Daniel Kahneman and observed extensively in human–computer interaction studies).
Over time, this leads to:
Reduced challenge of AI outputs
Declining verification behavior
Delegation of judgment without explicit intent
When over‑trust sets in, errors scale quietly.
Confidence is not correctness — but AI makes them easy to confuse.
Not all breakdowns involve blind trust.
In some environments, AI outputs are treated with suspicion — a pattern well documented in research on algorithm aversion, including studies by Dietvorst, Simmons, and Massey and analysis discussed in MIT Sloan Management Review. People double‑check everything, ignore recommendations, or quietly bypass systems to get work done when trust, incentives, or accountability are unclear.
This creates:
Shadow processes
Inconsistent outcomes
False confidence in controls
Under‑trust is not resistance. It is often a signal that work design and incentives are misaligned.
When AI informs or generates decisions, accountability often becomes unclear — a pattern widely documented in research on human–automation interaction and AI governance. Studies cited by MIT Sloan Management Review and Gartner show that when decision authority is shared between humans and systems, responsibility frequently diffuses unless it is explicitly designed. People assume the system is responsible, teams assume oversight exists elsewhere, and leaders assume controls are embedded — even when they are not. This phenomenon mirrors earlier findings in aviation, healthcare, and finance, where automation without clear accountability structures increased latent risk rather than reducing it.
Questions emerge:
Who approved this decision?
Who is responsible if it’s wrong?
Was the AI advising, deciding, or executing?
Without explicit design, responsibility diffuses — and risk follows.
Quoteable takeaway: If accountability isn’t explicit, it will be assumed — incorrectly.
Escalation depends on human confidence and clarity — both of which are shaped by organizational culture, power dynamics, and prior experience with technology.
Research in organizational psychology and human–automation interaction shows that people are significantly less likely to escalate concerns when authority, permission, or responsibility feels ambiguous. In AI contexts, this effect is amplified. MIT Sloan Management Review notes that as systems appear more autonomous and capable, employees become uncertain about whether and how to intervene, especially in hierarchical or risk‑averse cultures.
Unlike earlier automation, AI systems often blur the line between recommendation and decision. This creates hesitation: people worry about challenging “the system,” second‑guess their own judgment, or assume escalation will be seen as resistance rather than risk management. As a result, escalation slows or stops entirely, and issues surface late — if at all.
This is how small errors become systemic failures.
Human–AI collaboration rarely looks the same across an organization — a phenomenon we can think of as cultural drift, by analogy to the way AI teams talk about model drift.
If culture is simply “how we do things around here,” then collaboration norms with AI will inevitably vary based on local leadership styles, risk tolerance, incentives, and historical experience with technology. Some teams are encouraged to question and slow things down; others are rewarded for speed and compliance. Some cultures normalize challenge and escalation; others quietly punish it. Over time, these differences compound.
The result is not one collaboration model, but many — each drifting in its own direction. What looks like healthy challenge in one part of the organization can look like resistance in another; what feels like efficiency in one team can create hidden risk elsewhere. Research on organizational culture and technology adoption consistently shows that when norms are left implicit, behavior diverges, and risk becomes uneven and difficult to govern at scale.
Different teams develop different norms:
Some challenge aggressively
Others defer automatically
Many never align
This inconsistency creates uneven risk exposure — and makes enterprise‑wide assurance nearly impossible.
Human–AI collaboration failures do not trigger alerts. They do not look like incidents. They show up as:
Slightly worse decisions
Gradual over‑reliance
Missed signals
Normalized shortcuts
By the time outcomes degrade enough to notice, collaboration patterns are already entrenched.
The most dangerous failures feel normal while they’re happening.
Research consistently highlights that AI success depends less on model performance and more on how humans interact with AI in real workflows.
MIT studies show that organizations struggle when decision rights, incentives, and verification behaviors are left implicit. Gartner warns that AI‑related risk increasingly arises from human‑system interaction rather than technical failure alone.
Different lenses. Same conclusion.
Human–AI collaboration sits squarely within the remit of Human Risk Management — even though, in practice, responsibility for AI transformation is often distributed across IT, digital transformation, innovation, or data teams.
In some organizations, IT leads AI adoption. In others, transformation or innovation groups drive experimentation and scale. What is often missing at that table is a deliberate human factors perspective: someone accountable for how people actually experience, trust, challenge, misuse, or over‑rely on AI systems before adoption and during everyday use.
This is where Human Risk Management must show up — not to slow innovation, but to ensure that security, safety, and human cognition (including cognitive security) are protected as AI becomes embedded in work. HRM brings the ability to surface behavioral risk early, understand cultural variance across teams, and design guardrails that support wise adoption, not just fast adoption.
It involves:
Human judgment under uncertainty
Trust calibration
Behavioral norms
Cultural consistency
Accepted risk thresholds
These are not technical controls. They are human controls.
Human Risk Management programs have already evolved from awareness and phishing into quantifying behavior, understanding culture, and designing change. Human–AI collaboration is the next frontier of that evolution.
Organizations that manage collaboration risk do not eliminate AI — or slow it down unnecessarily. They design collaboration deliberately:
Clear decision boundaries
Expected verification behaviors
Safe escalation norms
Explicit accountability
Shared language around trust and challenge
Collaboration becomes intentional, not accidental.
For leadership teams, this does not start with policy or tooling. It starts with asking better questions:
Where, today, are humans expected to challenge, verify, or override AI — and is that expectation explicit, safe, and reinforced? If people cannot clearly answer this, collaboration risk is already present.
Do different teams collaborate with AI in materially different ways — and do we understand where cultural drift is increasing or concentrating risk? If collaboration norms vary invisibly, enterprise assurance will fail.
These questions are not theoretical. They are early-warning signals for whether human–AI collaboration is being designed — or simply left to chance.
Human–AI collaboration is where workforce transformation becomes real.
Skills matter. Operating models matter. Governance matters. But collaboration is where those elements meet daily behavior.
This is why work design sits at the center of AI workforce transformation — and why Human Risk Management has a critical role to play.
(If you haven’t read the foundational piece on AI Workforce Transformation and work design, start there.)
Human–AI collaboration describes how humans and AI systems interact in real work — including decision‑making, verification, escalation, and accountability.
It fails when collaboration is assumed rather than designed, leaving trust, judgment, and responsibility implicit.
No. Training helps, but collaboration failures stem from work design, incentives, and cultural norms.
Human Risk Management, in partnership with security, IT, and business leaders, is best positioned to manage collaboration risk at scale.
This article is part of our AI Workforce Transformation series. Up next:
Why AI governance fails without work design
How Human Risk Management becomes the AI control plane
How to measure human risk in AI‑driven work
Each article links back to the foundational pillar — because collaboration is where AI either compounds value or compounds risk.
AI doesn’t fail in isolation. It fails in collaboration.
Cybersecurity has become one of the most pressing issues for boardrooms today, with 88% of directors citing it as a key focus, according to the...
3 min read
TL;DR — Your employees’ “AI assistant” might be your next silent threat. As generative AI tools become embedded in daily work, many employees adopt...
8 min read
Subscribe to our newsletters for the latest news and insights.
Stay updated with best practices to enhance your workforce.
Get the latest on strategic risk for Executives and Managers.