Why "AI Management" and "AI Co-creation" Don't Align.

White Paper: "Management Theory for Orchestrating Co-creation with AI" by AlphaDrive AX for Revenue Institute

AlphaDrive Inc. (Chiyoda-ku, Tokyo; President & CEO/CAXO: Yoichi Aso; hereinafter "AlphaDrive"), through its AX (AI Transformation) research arm, the AX for Revenue Institute, has released a joint research report with POT Institute, which focuses on transformational talent and organizational change research. The report, titled "Management Theory for Orchestrating Co-creation with AI" (22 pages, free), is now available.

This paper points out the disconnect between two separate discussions currently prevalent: "AI Management" (management in the age of AI), which discusses organizational flattening and agent control, and "AI Co-creation" (Human-AI Co-Creation), which explores how humans and AI can generate new value. It defines the intersection of these two as "Co-Creation Orchestration."

▶︎ Download here: "Management Theory for Orchestrating Co-creation with AI"

Key Points of This Release:

"AI Management" is biased towards efficiency, while "AI Co-creation" remains at the individual level. A management theory that bridges these two and integrates AI and human co-creation "as an organization and for revenue" has yet to be articulated.

The AX for Revenue Institute names this gap "Co-Creation Orchestration" and positions it at the core of management in the AI era.

The key is not to replace humans with AI. In situations where the outcome is predefined and convergence is valuable, 1 Autonomous AI Agents (bearers of predefined outcomes) operate autonomously under human supervision. Conversely, in situations where the outcome is undefined and diversity and breakthroughs are valuable, 2 AI-Augmented Co-creators (PIs – bearers of on-the-ground intuition and unconventional ideas) infuse their own will and PI. The new management responsibility in the AI era is to discern the boundaries based on the granularity of "judgment" rather than tasks or departments, and to continuously update them in alignment with the AX for Revenue Loop defined in this paper.

CAXO is responsible for this cross-cutting responsibility. However, CAXO is not a superior position replacing CEO or COO. It is a role that connects the responsibilities of existing CxOs within the context of AI transformation and revenue evolution. In some companies, this can begin with the management team acting as the "de facto CAXO."

Background: "Despite Implementing AI, Sales Performance Hasn't Changed"

With the spread of generative AI, tasks such as creating meeting minutes and preparing documents have certainly become faster and cheaper. However, many on-site managers feel an unease, thinking, "We've implemented AI, but it's not generating new sales."

This paper attributes the reason to the "disconnection" between two discussions. The subject of global "AI Management" discourse is almost consistently the efficiency of execution. Both organizational flattening and AI agent control are confined to the context of "running predefined outcomes faster with fewer people." On the other hand, "AI Co-creation" research deals with value creation, but most of it is limited to individual-level experiments of "one human and one AI," and has not evolved into organizational or revenue theory.

AlphaDrive has referred to these two mountains as the "Mountain of Efficiency" (making existing work faster and cheaper) and the "Mountain of Revenue Evolution" (generating sales that didn't exist before). Many companies are only climbing the Mountain of Efficiency, and global management theory has yet to show how to climb the Mountain of Evolution – how to integrate AI and human co-creation as an organization.

Glossary: "What is AI Management?" "What is AI Co-creation?"

Let's first clarify the two terms this paper brings together.

AI Management is...

The practice of management that involves incorporating AI and AI agents into operations and questions how to design and operate organizations, people, and outcomes. Global discussions focus on organizational flattening and AI agent control, much of which is confined to the "Mountain of Efficiency" of efficiently running predefined outcomes.

AI Co-creation is...

The process where humans and AI collaborate by dividing roles to create new value that neither could achieve alone (Human–AI Co-Creation). While important for dealing with value creation, much of the research remains at the individual level of "one human and one AI."

"AI Management" discusses organizations but is biased towards efficiency; "AI Co-creation" discusses value creation but is limited to individuals. Their intersection is Co-Creation Orchestration.

This Paper's Argument: Defining the Intersection as "Co-Creation Orchestration"

The AX for Revenue Institute defines this unexplored territory as "Co-Creation Orchestration." This extends "AI Orchestration" (orchestrating multiple AIs) to include not only AI agents but also human PI (Primal Intelligence), team combinations, organizational culture, and management decisions as design targets. It is not a "technique for using AI well." It is management that reconnects human PI and will, ensuring they are not lost in an era where the boundaries between AI and humans are constantly shifting.

The starting point for design is to distinguish between entities that perform two different modes of operation based on the granularity of "judgment," rather than tasks or departments.

1 Autonomous AI Agents (Bearers of Predefined Outcomes)...

In situations where outcomes are predefined and quality standards, procedures, and completion conditions are clear, AI agents operate autonomously under human supervision. Convergence is valuable, making it suitable for the Mountain of Efficiency.

2 AI-Augmented Co-creators (Bearers of PI. PI refers to on-the-ground intuition and unconventional ideas)...

In situations where outcomes are undefined and exploration of questions, hypotheses, customer value, or the business model itself is required, AI-augmented co-creators take the lead. These are individuals or teams who, while having their capabilities augmented by AI, infuse their own will and PI (on-the-ground intuition and unconventional ideas) to push AI beyond its learning scope. This is not about people who are good at prompting. Diversity and breakthroughs are valuable, making it suitable for the Mountain of Revenue Evolution.

This paper presents a model for operating this co-creation across three "responsibility granularities": on-site/project, business unit/company-wide. This is not a hierarchical command structure. In each granularity, judgments handled by humans and processing handled by AI coexist.

And, the cross-cutting responsibility is borne by the CAXO (Chief AI Transformation Officer). However, CAXO is not a superior position replacing CEO or COO. It is the name of the responsibility for cross-connecting the business decisions set by the CEO, the execution structure handled by the COO, and the technology/data infrastructure handled by existing CxOs (such as CTO) within the context of AI transformation and revenue evolution. Depending on the company's maturity and focus, this can begin with the CEO, COO, CTO, CHRO, or CIO/CDO acting as the "de facto CAXO."

Reason for Joint Paper with POT Institute:

This paper is not solely an AI management theory from the AX for Revenue Institute. POT Institute has previously researched talent in the AI era not just as AI skill holders, but from the perspectives of PI emergence, team combinations, and organizational culture. Their white paper "AI Talent Development is Insufficient with Training" discusses "whose PI to infuse into AI within which teams," and "AI Era Corporate Culture is Determined by Whether the Organization Can Offer PI" discusses "whether the organization can accept that PI." Following these, this paper addresses how to continuously organize people, teams, and culture as management, along with groups of AI agents.

Research Auxiliary Line: "Hidden Pitfalls" in Co-creation Exist

This paper references multiple studies on AI co-creation and organizes risks that managers often overlook. For example, a randomized experiment in short story creation (Doshi & Hauser, Science Advances, 2024) showed that while the novelty of works by writers who interacted with generative AI increased by up to 8.1%, a "homogenization" was observed where works by different writers became similar to each other. A meta-analysis integrating multiple studies (de Rooij & Biskjaer, 2026) also suggests this trend.

Translated into management terms, this is the risk that "if all employees rely on the same AI in the same way, proposals may improve, but the organization's answers will converge, and differentiation will quietly disappear." This does not manifest as reduced processing time or costs. This paper tentatively calls the measure for "organizational novelty" "Collective Novelty," but frankly states that its measurement is not yet established and remains a future research challenge.

Furthermore, this paper states that leading indicators under research, such as collective novelty, and assessment indicators like traits and culture, should not be directly used for individual performance evaluations or rankings. On the other hand, outcome and contribution indicators such as Revenue ROI, hypothesis testing, learning contribution, and team performance may be linked to evaluations and compensation in the future as outcomes of AI revenue evolution – taking the stance of separating assessment from outcomes, rather than "not linking to assessment."

White Paper Overview:

Title:

Management Theory for Orchestrating Co-creation with AI

Format/Price:

PDF, 23 pages total, Free

Publication Date:

July 7, 2026

Issued by:

AX for Revenue Institute / POT Institute (AlphaDrive Inc.)

Download:

From here: https://axfr.ai/whitepaper/wp-09

Related Content:

White Paper "AI Talent Development is Insufficient with Training": Here

White Paper "AI Era Corporate Culture is Determined by Whether the Organization Can Offer PI": Here

About POT Institute:

POT Institute is AlphaDrive's research and development organization for human and organizational transformation.

Its mission is to create a society where future corporate value is enhanced by visualizing, leveraging, and combining the potential of each diverse individual within a company.

To achieve this, POT Institute has been researching and developing ways to visualize and discover the qualities of transformational talent, which are difficult to see with existing evaluation criteria, from within companies. Furthermore, it researches and develops environments and organizational cultures where these qualities can be exercised within teams and accepted by the organization, rather than ending as individual achievements.

CULTURE7, developed by POT Institute, is a unique framework that visualizes organizational culture across multiple axes, extending from this research. It aims to visualize not only the discovery of human potential but also the "space" for that potential to be exercised, combined, and lead to corporate value.

Details: https://pot.alphadrive.co.jp/

About AX for Revenue:

AX for Revenue is a new domain launched by AlphaDrive in May 2026. It advocates and implements "Revenue Evolution AI Systems" that use AI to achieve discontinuous evolution of corporate revenue, promoting the application of AI in business development and the systematization of human resource development methods for the AI era. Recognizing the era of "Completion Cost Collapse," it supports revenue evolution that goes beyond mere efficiency, centered on original concepts such as Full-Product Launch, AI Orchestration, and Field Intelligence. It redefines the ideal human resource for AI-era business development as an "AX Architect" and includes their development and organizational implementation within its support scope.

Details: https://axfr.ai

▼ AlphaDrive Inc. Company Overview

Company Name: AlphaDrive Co.,Ltd.

Established: February 23, 2018

Representative: President & CEO/CAXO Yoichi Aso

Location: 1F Kurasu Bldg., 2-17-3 Nagata-cho, Chiyoda-ku, Tokyo 100-0014

https://alphadrive.co.jp/