How Artificial Intelligence is Changing the Way We Lead
Notes from Peifer, Jeske, & Hille (2022)
As artificial intelligence (AI) continues to evolve, it is having a profound impact on the way we lead. AI is changing the way we make decisions, communicate with others, and even manage our time. In this post, I will explore how AI is impacting leadership and discuss some of the challenges and opportunities that lie ahead. But first, let’s define AI in the context of leadership.
What is Artificial Intelligence?
AI combines aspects of both engineering and cognitive science and can be divided into different levels:
- Artificial Narrow Intelligence (ANI): This is the most basic form of AI and focuses on completing a specific task.
- Artificial General Intelligence (AGI): This level of AI can handle more complex tasks and is often compared to human intelligence.
- Artificial Super Intelligence (ASI): This is the highest level of AI and refers to machines that are smarter than humans.
Currently, we are still in the early stages of developing AI and most systems are still at the ANI level. But as AI continues to evolve, we are moving closer and closer to AGI.
Machine Learning
Today’s AI systems work with machine learning. Machine learning is a subset of AI that deals with the study and construction of algorithms. These algorithms can automatically improve given more data.
Deep Learning
Deep learning is a newer development in machine learning. It uses methods from unsupervised learning, such as representation learning and feature learning. Deep learning allows machines to learn from data that is unstructured or unlabeled.
How is AI impacting Leadership?
The increased use of AI is changing the way we lead in several ways.
Decision-Making
One of the most significant ways AI is impacting leadership is in the area of decision-making. With the help of data and analytics, AI can provide leaders with new insights and perspectives that they may not have otherwise had access to. This can help leaders make better decisions about where to allocate resources, how to best serve their customers, and what trends to be aware of.
Communication
Another way AI is impacting leadership is in the area of communication. AI-powered tools such as chatbots and virtual assistants are changing the way leaders communicate with their employees and customers. These tools can help leaders save time by automating tasks such as scheduling meetings and sending reminders. They can also help leaders stay connected with their team by providing them with instant access to information and answers to questions.
Time Management
AI is also changing the way leaders manage their time. With the help of AI-powered tools, leaders can now get real-time insights into how their team is performing and where they need to focus their attention. This allows leaders to be more efficient with their time and better prioritize their tasks.
What Challenges and Opportunities Lie Ahead?
As AI continues to evolve, there will be both challenges and opportunities that arise for leaders. One of the challenges that leaders will face is how to manage the increased amount of data that will be generated. With more data comes more responsibility to make sure it is used in a way that benefits employees and customers. Such a challenge and opportunity is associated with AI integration.
AI Integration
AI integration is the process of incorporating AI into various business processes. This can be done in a number of ways, such as using AI to automate tasks, using AI to make decisions, or using AI to interact with customers.
AI is having a profound impact on leadership because it is changing the way leaders make decisions, communicate with others, and manage their time.
Peifer, Jeske, & Hille (2022) have attempted to gain insights into the challenges and requirements for leaders from the increased use of AI. They argue that different aspects of AI integration must be taken into account through a holistic approach and, in turn, describe four clusters of challenges and requirements for leaders.
Four Clusters of Challenges and Requirements for Leaders
- Strategic Transformation Process
- Qualification and Competencies
- Culture
- Human AI Interaction
Strategic Transformation Process
Implementation and use of AI in companies require a strategy that begins with the strategic design of the change process. Here, leaders should be aware that strategic change is a long-term task and develop a vision.
Qualification and Competencies
Because of AI, the requirements for leaders and their competencies will increasingly change. Leaders should therefore have knowledge about the quality of data and how to work with it, have the ability to weigh the risks of their own decisions, design the change process and manage the complexity, and interact between employees and AI.
Culture
Leadership and culture are important aspects of the successful implementation of AI. Culture helps generate acceptance among stakeholders and allows for mistakes and failures during the change process.
Human AI Interaction
Leaders have the task of shaping the interaction between employees and AI. They must make decisions based on which activities are to be taken over by humans and which to be carried out by the AI. Leaders must understand the individual strengths of respective actors, i.e., strength competencies related to the following:
- Social awareness of employees
- Ethics
- Self-determination
- Justice
- Protection of privacy
- Protection of the individual
- Trustworthiness
- Useful work-sharing
- Communication, cooperation, and social inclusion
Ethical AI
Another challenge that leaders will face is how to ensure that AI-powered tools are used ethically and responsibly. With the power to automate tasks and make decisions, comes the responsibility to use AI in a way that is fair and just.
On the other hand, there are also many opportunities that will arise for leaders as AI continues to evolve. One of these opportunities is the ability to create new products and services that solve problems in new and innovative ways. Another opportunity is the ability to tap into new markets that have been created by the rise of AI. As AI continues to change the world, leaders who are able to embrace these changes will be best positioned for success.
What do you think?
How has AI changed the way you lead? Are you using any AI-powered tools to help you communicate or manage your time? Share your thoughts in the comments!
Peifer, Y., Jeske, T., & Hille, S. (2022). Artificial Intelligence and its Impact on Leaders and Leadership. Procedia Computer Science, 200, 1024–1030.
