Integrating Game Theory and AI in Management Training: A Revolutionary Approach to Enhancing Leadership and Managerial Decision-Making Skills

Abstract

The evolving global business landscape demands innovative management training to equip leaders with the agility and strategic insight needed for human-centric challenges. This paper presents a novel training methodology that combines Game Theory and Artificial Intelligence (AI) to enhance leadership and decision-making skills. By leveraging Game Theory, we dissect organizational decision-making processes, highlighting the interdependence of managerial practices and their impact on organizational dynamics. AI is employed to simulate complex decision-making scenarios, providing tailored feedback and strategic advice through advanced algorithms and data analytics. This integration creates an immersive learning environment where leaders can experiment and observe the consequences of their decisions in real-time, thereby refining their strategic thinking. At the core of our methodology is an AI-assisted simulation game that models a year in the life of a team leader, challenging players with real-world managerial dilemmas. Developed using the Unity 3D engine, the game incorporates evidence-based rules and an AI Assistant that offers real-time feedback to optimize decision-making for future rewards. A case study involving 122 university students and an organizational case study demonstrates significant improvements in strategic management understanding and decision-making skills. The application of this methodology in the Lapland Hospital District (LSHP) led to measurable enhancements in Quality of Work Life (QWL) and leadership perception, alongside a substantial return on investment. In conclusion, the integration of Game Theory and AI in management training offers a revolutionary approach to developing managerial skills, promising to reshape leadership training for the modern era.