Strategic Agency Reserve in AI-Intensive Organisations: Preserving Human Judgement, Intervention Capacity and Resilience under Intelligent Automation

Kwan Hong TAN *

Singapore University of Social Sciences, Singapore.

*Author to whom correspondence should be addressed.


Abstract

Aims: This chapter proposes Strategic Agency Reserve (SAR), an original management construct describing the stock of human capability that allows an organisation to diagnose, judge, intervene, improvise and accept accountability when AI-mediated routines become unreliable, ambiguous, unavailable or misaligned.

Study Design: Integrative conceptual review and theory-development chapter.

Methodology: The analysis synthesises published peer-reviewed research on generative AI productivity, human-automation reliance, organisational learning, skill formation, strategic decision making, organisation design and resilience. Conceptual comparison is used to distinguish SAR from human capital, absorptive capacity, dynamic capabilities, slack and resilience.

Results: The chapter identifies five dimensions of SAR: epistemic vigilance, contextual judgement, intervention competence, adaptive recombination and accountability ownership. It develops ten propositions explaining how AI delegation can erode or replenish SAR, proposes a 15-item diagnostic scale and complementary behavioural indicators, and specifies reserve-preserving practices for AI-intensive organisations. The framework predicts that high delegation can remain strategically robust when organisations deliberately maintain a sufficient and distributed reserve, whereas high delegation combined with low reserve creates brittle autonomy.

Conclusion: AI strategy should treat human capability not simply as labour awaiting substitution, but as an option-bearing reserve whose value becomes most visible during exceptions, shocks and model failure. SAR offers a measurable research agenda and a practical design principle for combining AI-enabled efficiency with durable organisational agency.

Keywords: Strategic agency reserve, artificial intelligence, human-AI collaboration, organisational resilience, strategic management, skill erosion, automation, human oversight


How to Cite

TAN, K. H. (2026). Strategic Agency Reserve in AI-Intensive Organisations: Preserving Human Judgement, Intervention Capacity and Resilience under Intelligent Automation. Knowledge, Innovation and Technology in Scientific Research Vol. 2, 109–136. https://doi.org/10.9734/bpi/kitsr/v2/7942