Sustainable Human-AI Collaboration: A Human-Centered Institutional Design for AI-Mediated Institutions Version 3

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Purpose: This paper examines how institutional design influences the effectiveness and sustainability of Human-AI collaboration in AI-mediated institutions. It argues that sustainable collaboration depends on institutional conditions governing evaluation, integration, governance, and the use of human expertise. Design/Methodology/Approach: The paper adopts a conceptual human-centered systems perspective to examine institutional evaluation mechanisms, incentive structures, hierarchical information filtering, and behavioral normalization loops. Their interaction produces emergent institutional patterns that affect organizational coherence, contextual decision-making, learning, and adaptive capacity. Building on this analysis, HCESF (Author’s previously developed Framework) provides the ethical foundation for an AI-mediated institutional design response. Findings: The analysis demonstrates that AI can reinforce organizational weaknesses arising from fragmented communication, misaligned incentives, hidden workload, weakened contextual judgment, and overreliance on measurable indicators. Sustainable Human-AI collaboration therefore requires institutions that enable AI to augment human judgment while preserving contextual knowledge, ethical reasoning, adaptability, and recognition of human contributions. Research Limitations/Implications: The paper is conceptual and does not empirically test the proposed relationships or design principles. Its contribution is to provide an integrated account of the institutional conditions shaping sustainable Human-AI collaboration. Practical Implications: Five AI-mediated institutional design principles are identified: boundary-defined roles, adaptive policy systems, transparent feedback systems, recognition equity mechanisms, and ethical workload governance. Social Implications: Human-centered institutional design can strengthen trust, fairness, resilience, accountability, and human agency while supporting responsible technological advancement. Originality/Value: The paper shifts attention from technological implementation toward the institutional conditions required for sustainable Human-AI collaboration. Keywords: Artificial Intelligence; Human-AI Collaboration; AI-Mediated Institutions; Human-Centered Institutional Design; Human-Centered Ethical Systems Framework; Institutional Governance. AI Disclosure: Chat GPT was used during manuscript preparation to support language refinement, editing, and improvement of clarity and readability. The author retains full responsibility for the manuscript, including its intellectual contributions, theoretical development, analysis, interpretations, and final content decisions. Author Note: The author is an independent researcher with professional experience in human resources and organizational administration across healthcare, power, construction, media, and technology sectors. This professional experience informs the author's interest in organizational systems, institutional governance, human-centered design, and the development of sustainable Human-AI collaboration.