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TL;DR

A management-focused experiment pits AI models against real business crises, exposing their strengths and weaknesses in decision-making and trust. Results highlight that analysis alone isn’t enough for effective management.

A live experiment conducted by Firmulate tests five AI models on managing a simulated company facing its worst week, revealing key differences in their ability to follow through on decisions, not just analyze problems. This development matters because it challenges assumptions that AI’s analytical prowess directly translates into effective management, as detailed in the original analysis.

The experiment involved five AI models running a small software company with a simulated crisis environment, including real-time customer issues, financial pressure, and operational challenges. For more on managing AI in business, see this analysis. Each model was tasked with managing the company, making decisions, and closing deals under pressure. The results, published in July 2026, showed that while all models recognized crises and refused manipulative requests, only two successfully completed a crucial €55,000 deal, demonstrating effective execution.

Among the models, GPT-5.6-Sol ranked first with 95 points, followed by Kimi K3 with 93, Sonnet 5 with 88, Fable 5 with 77, and Opus 4.8 with 73. The experiment highlighted that thorough analysis did not necessarily lead to successful management; models that combined understanding with decisive action performed better. For example, Opus 4.8 produced detailed analysis but failed to close the deal, illustrating that analysis without execution is insufficient.

Security and trustworthiness were also tested, with all models correctly refusing manipulative requests, indicating strong security instincts. The experiment emphasizes that effective management involves not only recognizing problems but also taking and completing the necessary actions under real-world pressures.

At a glance
reportWhen: ongoing, with recent results published…
The developmentA live test comparing AI models on management decisions reveals significant differences in their ability to execute and complete tasks, not just analyze problems.

Implications of Management Testing for AI Effectiveness

This experiment demonstrates that evaluating AI models solely on their analytical capabilities is insufficient for assessing their readiness for operational management. The ability to execute, follow up, and close deals is critical, and models that excel in analysis but falter in action may not be suitable for real-world deployment. For organizations considering AI automation, such tests provide a more accurate measure of how AI will perform in actual business environments, emphasizing the importance of comprehensive evaluation beyond theoretical or superficial assessments.

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Background of AI Management Evaluation Methods

Traditional AI evaluation often focuses on benchmarks measuring language understanding, problem-solving, or predictive accuracy. However, these do not necessarily reflect an AI’s capacity to manage ongoing tasks or handle complex decision-making in operational settings. Recent experiments, including Firmulate’s live crisis management test, aim to bridge this gap by simulating real management scenarios where decision quality and follow-through are essential. The results challenge the assumption that better analysis automatically leads to better management performance, highlighting the need for more practical testing approaches.

“Thorough analysis is valuable, but without effective execution, AI models cannot replace human management in complex, pressured situations.”

— a researcher involved in the experiment

Unanswered Questions About AI Management Capabilities

It is still unclear how these findings will translate to real-world business environments beyond simulations. The experiment focused on specific decision-making scenarios, and the broader applicability to diverse industries, company sizes, or management styles remains to be tested. Additionally, the long-term reliability and adaptability of these models under evolving business conditions are not yet known.

Future Directions for AI Management Testing

Organizations are expected to adopt similar management wargames tailored to their operations to evaluate AI readiness. Further research will likely explore how models improve in follow-through and operational discipline over time, and whether integrated evaluation frameworks can better predict real-world performance. The ongoing development of AI models will also focus on balancing analytical depth with effective action, refining the criteria for deployment in management roles.

Key Questions

Why is execution more important than analysis in AI management?

Because managing a business requires not only understanding problems but also taking and completing the necessary actions under pressure. Without effective execution, even the most insightful analysis fails to deliver results.

Can AI models be trusted to make management decisions?

Current experiments show that models can recognize risks and refuse manipulative requests, indicating strong security instincts. However, their ability to consistently execute and follow through on decisions is still under evaluation.

How does this experiment change AI evaluation practices?

It highlights the need for practical, scenario-based testing that assesses not just analytical skills but also operational discipline and action-taking capabilities.

Will this lead to AI replacing human managers?

While AI can assist with analysis and decision support, effective management still requires human judgment, especially for complex, nuanced, and follow-through tasks. These experiments aim to identify where AI can complement human roles rather than replace them.

Source: ThorstenMeyerAI.com

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