Setting the right goals and prioritizing them might be the most crucial and the most challenging type of decisions people make for themselves, their teams, and their organizations. In this article, we explore whether it might be possible to leverage artificial intelligence (AI) to help people set better goals and which potential problems might arise from such applications. We devised the first prototype of an AI-powered digital goal-setting assistant and a rigorous empirical paradigm for assessing the quality of AI-generated goal suggestions. Our empirical paradigm compares the AI-generated goal suggestions against randomly-generated goal suggestions and unassisted goal-setting on a battery of self-report measures of important goal characteristics, motivation, and usability in a large-scale repeated-measures online experiment. The results of an online experiment with 259 participants revealed that our intuitively compelling goal suggestion algorithm was actively harmful to the quality of the people's goals and their motivation to pursue them. These surprising findings highlight three crucial problems to be tackled by future work on leveraging AI to help people set better goals: i) aligning the objective function of the AI algorithms with the design goals, ii) helping people quantify how valuable different goals are to them, and iii) preserving the user's sense of autonomy.

Goal-directed behaviour is a deeply important part of human psychology. People constantly set goals for themselves and pursue them in many domains of life. In this paper, we develop computational models that characterize how humans pursue goals in a complex dynamic environment and test how well they describe human behaviour in an experiment. Our models are motivated by the principle of resource rationality and draw upon psychological insights about people's limited attention and planning capacities. We found that human goal pursuit is qualitatively different and substantially less efficient than optimal goal pursuit. Models of goal pursuit based on the principle of resource rationality captured human behavior better than both a model of optimal goal pursuit and heuristics that are not resource-rational. We conclude that human goal pursuit is jointly shaped by its function, the structure of the environment, and cognitive costs and constraints on human planning and attention. Our findings are an important step toward understanding humans goal pursuit, as cognitive limitations play a crucial role in shaping people's goal-directed behaviour.