Abstract
In the early 2010s, when Artificial Intelligence (AI) emerged from the latest "winter" of disillusionment, discussions about its use in decision-making tended to be dichotomous: humans or AI. More recently, consensus has shifted toward a complementary humans-and-AI perspective, recognising that augmentation, not substitution, is the more appropriate frame for AI's role in the foreseeable future. This shift foregrounds the challenge of evaluating outcomes in collaborative decision-making contexts.The thesis proposes a simulation-based framework, drawing on system dynamics, to evaluate whether complex, time-varying interactions between humans and AI agents result in collectively rational behaviour. The framework extends the observation of dynamic complexity to settings where algorithmic components handle pattern recognition and prediction while human judgement governs goal-setting, threshold parameters, and cross-process coordination. Two testbeds test the framework's viability: a stylised supply chain model and a bike-share system.In the supply chain testbed, forecasting product returns is handled by machine learning, while human judgement determines how forecasts translate into capacity and inventory decisions. A partial model tests local rationality, while a fuller model places forecasting in a broader operational context to assess holistic rationality. In the bike-share case, inventory balancing relies on crowdsourcing, where incentivised users take action. Using open data from New York's Citi Bike, the study highlights misalignments between incentives and system needs, underscoring the complexity of user behaviour mediated by bike availability.The findings confirm that AI models evaluated in isolation may deliver disappointing results when task performance is considered holistically. These cases demonstrate the central contribution: a simulation-based framework for assessing the joint performance of human and AI decision-makers, supported by a simulation workbench that enables systematic exploration of alternative policies.
Awarding Institution(s)
University of Plymouth
Supervisor
Guido Siestrup, Martin Knahl, Marco Palomino, Nathan Clarke
Document Type
Thesis
Publication Date
2026
Embargo Period
2026-02-13
Deposit Date
February 2026
Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Recommended Citation
Sankaran, G. (2026) Towards an Evaluation of the Business Value of AI: A System Dynamics Approach. Thesis. University of Plymouth. Retrieved from https://pearl.plymouth.ac.uk/secam-theses/565
