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Podcast: Leadership Article Review Podcast
Episode: From Search to Match: How AI Agents Are Reshaping Platform Economics and Organizational Strategy, by Jonathan H. Westover PhD
Description:
Abstract: Artificial intelligence agents are fundamentally transforming how platforms operate, shifting economic dynamics from search-based to matching-based systems. This transition introduces new forms of market congestion where AI agents acting on behalf of users create coordination challenges that differ markedly from traditional search costs. Drawing on recent empirical evidence and matching theory, this article examines how AI-powered agents concentrate demand, reshape competitive dynamics, and create novel organizational challenges. Organizations face pressure from algorithm-driven selection processes that prioritize top-ranked options while filtering out alternatives users might have previously discovered through search. The article presents evidence-based organizational responses across multiple industries...