5 Ways Artificial Intelligence Influences Leadership In The Workplace

Are you adopting artificial intelligence in your workplace ?

Do you still think it’s too early ?

If so, it’s Game Over.

The long term potential of AI is fabulous; however, the short term potential is quite unclear yet. A McKinsey research reveals that the long term opportunity of AI is forecast to reach USD 4.4 Trillion in added productivity growth potential in a corporate context. The impactful influence of AI in the workplace has pushed us to rethink about our leadership personal brand.

Artificial intelligence creates a blend between human creativity and strategic thinking which enable enhanced problem solving and thereby giving leaders the edge enabling them to tackle challenges they face. The scope of leadership transformation set to take place as a result of AI is not measurable yet. According to McKinsey, 92% of companies plan to increase their AI investments in the next 3 years.

With all these changes taking place, the real question is are we ready to adapt ourselves to embrace these advancements. The adoption of artificial intelligence into systems and processes requires people to change by leaps and bounds too. How are we as the leadership team planning to change the team members to adapt their mindset to fit the needs of the organization’s vision. This has been clearly demonstrated in Seth Godin’s book “This Is Strategy”. It says “people don’t do things because you want them to. They change because they want to”. This is an absolutely powerful statement which addresses the root cause of the problem as to why people do not change. Therefore, it’s essential that we create an environment, a system, a process which makes the people in the organization want to change.? ?

Artificial intelligence could create disruptive changes which are positive. Leadership teams should understand that this transformation would take time; however, leaders should not lose focus. Advancing boldly today is of paramount importance to face the future without getting thrown out of the game.? As a CEO or a member of a leadership team making tough calls is undoubtedly one of the most important aspects in running a business. These are decisions are make or break calls which will either become a thriving factor for the business or declining factor. Therefore, decision making for leaders in the age of AI is not something that can be ignored or avoided.

One of the most essential aspects of leadership in this age of AI is the fact that AI reduces human-error in decision making. Human errors can take businesses into catastrophic situations. These errors and impacts can vary based on industries in instances where the errors could result in production slowdowns to physical injuries and in general reduced efficiency.

There is a steadfast importance of AI for the C-Suite. According to the Boston Consulting Group (BCG), around 75% of C-Suite executives has named AI as one of the top 3 priorities for 2025. Investment in Generative AI would also increase from 2025 and beyond.? 25% of executives who mentioned that they have created significant value through AI initiatives, have focused on only a small set of AI initiatives. These initiatives would be scaled swiftly, changing core processes, upskilling their teams, and systematically measuring operational and financial returns (BCG Data).

BCG also says that top performing organizations follow the 10-20-70 principle which is about dedicating 10% of their efforts to algorithms, 20% to data & technology and 70% to people, processes and cultural transformation. Human workers have stating power where 68% of companies expect to maintain their workforce. What we should remember as leaders is that AI will never reach its potential if workers feel disempowered and displaced. If the workers feel they are not important, it will be chaotic for the companies; because AI should always work in tandem with humans for businesses to tap its fullest potential.

Here are 5 ways artificial intelligence influences leadership in the workplace;

1. Enhanced decision making:

The internet was born 40 years ago. During this period companies such as Alphabet, Amazon, Apple, Meta and Microsoft have reached trillion-dollar market capitalization. The internet created a profound change in the anatomy of work and the access to information. In an era such as this, where AI is like the internet many years ago, the risk for business leaders is not thinking too big, but rather too small. Thinking too big involves critical decision making. AI has enabled enhanced decision making through real time data and analysis where leaders could make more informed decisions and consequently respond in a swift manner to changes in the business environment.

2. Shift from directive leadership to collaborative leadership:

Even though the hype of artificial intelligence is at a certain level in the current context; according to a recent BCG article titled “A Leader’s Guide To Transforming with AI ”, only 25% of companies have cracked the code and identified the real value. It’s an interesting concept that BCG came up with called BCG’s 3 AI Value Plays which are Deployed, Reshape and Invent which talk about deploying technology for productivity gains, reshaping critical functions and inventing new revenue streams by developing novel products and services. Therefore, improving through feedback is essential when we are transitioning from a directive leadership style to a collaborative leadership style.

3. Razor Sharp Focus on Emotional Intelligence:

There are extraordinary advances taking place with AI; However, humanity ranks above technology at all times. This societal revolution should focus on building better humans with empathy. As leaders, we should always ensure that our people are in good shape and they are taken care of well. The mindset we have to maintain the AI systems should apply in multiple fold to take care of the people we have with us in the organization; because we cannot reap the maximum potential of AI without humans. Emotional intelligence is an integral factor in crafting a vision for a collective future where businesses thrive with the blend of AI and humans.

4. Ethical Leadership:

The responsible use of AI is a critical factor. It can make business thrive or shut down. Therefore, the ethical aspect in leadership is crucial. This ethical leadership approach would be beneficial in building trust and integrity within the organization. Experts believe that a conscientious approach is essential for AI use and interaction with other technologies and at the same time putting people at the center. Therefore, ethical leadership is an integral factor in driving business forward in a futuristic world.

5. Continuous Adaptability and Learning:

Artificial intelligence is a catalyst for progress as well as a source of disruption in the modern business world. There is a question we should ask ourselves as leaders at all times. Are we relevant ? The answer to this is lifelong learning and adaptability when systems are designed in top down approach where there are structured processes and procedures, people have no other choice than adapting to them. If not, they would not survive.

Therefore, these 5 ways of enhanced decision making, shift from directive leadership to collaborative leadership, focus on emotional intelligence, ethical leadership and continuous adaptability & learning make a massive influence in the leadership styles in the age of AI.

Your leadership personal brand is an element you should rethink to thrive in this ever advancing modern business world.

To be a One-Of-A-Kind Personal Brand, you need to be a One-Of-A-Kind Thinker.

Wish You Success !

Sasanka Dias