AI-Powered Leadership: Revolutionizing Work and Management in Today's Companies and Institutions

AI systems can relieve executives of routine activities and give them time for people management, strategic planning, and change management in the AI age. However, AI-supported automation of back-office tasks raises data protection and labor law issues, as well as organizational issues, and can therefore cause concern for employees. People should always be the center of attention, what's more, they should be the origin of the things we want to happen.

What is needed is a management culture based on participation, openness and transparency.

“Artificial intelligence can make an important contribution to human-centered cooperative leadership. By easing the burden of operational tasks, automation and support systems create space for good people management, innovation, and strategic foresight. Executives can focus on their human strengths and on the essentials of modern leadership: creative problem solving, employee motivation and coaching, and open and appreciative communication with employees.

What managers need to consider when dividing the work with AI systems?

At the same time, the use of AI systems in companies triggers change and presents employees with far-reaching organizational and work challenges, for example, on what basis AI systems can issue instructions. Shaping this change together with employees is becoming a key task for managers.

One risk of using AI, for example, is losing sight of the people behind the data because of the key figures and statistics the AI system uses, experts warn in the white paper. “AI systems can take over management tasks that were previously the sole responsibility of humans. For example, they can help managers create individual curricula for further training of employees. To do this, the AI will have to work with sensitive personal data."

The fear that calculations in a computer program could influence personnel policy, further training opportunities, or career opportunities can be psychologically stressful and demotivating for employees, therefore it is important that managers follow through on their duty of care paying attention to health protection, making the use of the AI system transparent, critically questioning AI recommendations and involving employees in the design of new processes.

In particular, when AI systems process personal or performance-related data of employees, data protection and personal rights of individuals must be ensured. In this way, learning data from continuing education can promote the career advancement of employees. However, executives could also misuse the data to monitor and monitor performance, for this it will be necessary to certify AI systems in management according to their risk potential and use only certified systems to avoid misuse. On the basis of which data AI systems take over management tasks must be determined in close consultation with employees and their stakeholders.

Successful leaders have recognized the importance of AI and use the technology for operational tasks, but also to become better leaders. With AI, they can drive growth and set the right priorities. This gives them the freedom to motivate and inspire people.

AI is changing leadership. To successfully deal with artificial intelligence, managers need to acquire new skills and further develop management culture.

AI makes leadership even more human and helps decision makers focus on what's important: employees and strategic priorities. Therefore, operational skills will take a backseat in the future. On the other hand, leadership qualities are increasingly important: inspiration, empathy, openness, respect and creativity. At the same time, the courage to focus, prioritize, and deal with complexity and uncertainty becomes central.

AI is a growth engine, clearly high growth companies use AI more than twice as often as slow growing companies.

Executives at high-growth companies want to use AI more for decision-making and for the strategic direction of their organization.

What leadership qualities will become more important as AI spreads?

Executives must learn to handle AI and use technology for themselves:

• How can AI ease me in everyday life?
• What impact does AI have on corporate strategy?
• And what cultural changes are associated with the use of AI?

To answer these questions, managers need up-to-date training and development and, above all, courage, openness and curiosity in the face of digital change.

Many companies have recognized artificial intelligence as an important driver of growth, but the debate in society as a whole about the use of technology and its effects is still in its infancy. It is high time to develop a common vision for our AI future and create the framework for dealing with the technology.

Emirates Institute of Finance (EIF) has set itself the goal of empowering executives to confidently lead in the age of artificial intelligence.

We can train leaders in aspects that will undoubtedly be critical aspects for them:

Technology: They will get an overview of the basics of AI and the technologies behind them.

Strategy: Learn how AI is used from practical examples from leading financial companies.

Culture: EIF joiners from a wide range of fields use their own examples to explain how they experienced and helped shape culture change.

What kind of leadership will it take to make that happen?

Any debate around AI requires a reassessment of leadership itself. Without a transformation here, AI will never fully work: business problems and dilemmas cannot be solved with algorithms alone. The answers lie elsewhere, in a transformation from smart to wise leadership. Because wise leaders not only create and capture vital economic value, but also build more sustainable and legitimate organizations.

More than reasonable, they are responsible and fulfill their fiduciary duty of loyalty and care to the organization and its long-term/sustainable value. Value that the AI can enhance, erode, or destroy, depending on how wisely it is directed.

At its core, intelligent decision making is about expanding the contextual framework and providing a more holistic perspective. It means being able to understand and resolve contradictions, paradoxes, tensions. Wise leaders embrace a 'multiple perspective' and have the emotional maturity and generosity of soul to inspire and mobilize others. AI can help leaders realize an organization's vision, but without wisdom, it can jeopardize a more humane future.

AI (and machine learning) involve computers crunching vast amounts of data to find patterns and make predictions. Deep learning enables predictive modeling via an artificial 'neural network', freely modeling the way neurons are wired in the brain.

What kind of leadership needed today? Here is our summary.

New intelligence, new leadership

Any debate around AI requires a reassessment of leadership itself. Without a transformation here, AI will never fully work: business problems and dilemmas cannot be solved with algorithms alone. The answers lie elsewhere, in a transformation from smart to wise leadership. Because wise leaders not only create and capture vital economic value, but also build more sustainable and legitimate organizations. More than reasonable, they are responsible and fulfill their fiduciary duty of loyalty and care to the organization and its long-term/sustainable value. Value that the AI can enhance, erode, or destroy, depending on how wisely it is directed.

At its core, intelligent decision making is about expanding the contextual framework and providing a more holistic perspective. It means being able to understand and resolve contradictions, paradoxes, tensions. Wise leaders embrace a 'multiple perspective' and have the emotional maturity and generosity of soul to inspire and mobilize others. AI can help leaders realize an organization's vision, but without wisdom, it can jeopardize a more humane future.

Harnessing the predictive power of AI will require intelligent judgment

Any senior executive knows the importance of predicting the next market change or big product by making sense of multiple factors. AI is already outperforming humans in rising above the noise, in capturing patterns and signals. Its precise predictive power is working with, and improving, human judgment. But leveraging AI means transforming key operational activities and collaborating beyond internal corporate boundaries to form an ecosystem of common (digital) connections and practices. Additionally, predictions must lead to strategically valid actions, with embedded data analytics as a core organizational capability, used to detect pain points, design solutions, and enable decisions.

Business is about imagining the unimaginable, innovating solutions, inspiring and mobilizing people. Shape a future situation, rather than just predicting particular outcomes. Wise leaders will combine human and artificial intelligence, deploying AI as a highly effective tool. Wise leaders use their creativity where they can make a difference, establishing a new solution that they can influence.

AI needs explicit and appropriate goals: algorithms do what they are told. And if they can identify patterns too subtle for human detection, generate accurate information, and enable better, more informed decisions, they don't explain why they offer particular recommendations. The prediction is not equivalent to advice either, this implies a certain dimension of ?socioethical value?. So for the foreseeable future, AI may be smart, but it still needs humans to set the right targets and engage in creative interpretation. Human intelligence alone and, by association, artificial intelligence, do not equate to wisdom.

Early adopters can reap significant benefits from AI, also in one of the most critical business areas in this data-driven age: security. The government (detecting possible cyberattacks, traffic control systems, military drones), banks (detecting suspicious behavior) or retail (theft detection) will benefit. And big data analytics correlated with core digital technologies are powerful AI techniques: virtual agents, natural language generation and processing, image recognition, decision making, robotic process automation, robotics, and speech recognition. However, the AI follows a slow moving S-curve. Only 10% of companies have tried to spread it in their organizations.

Machines are unlikely to replace humans any time soon

For the foreseeable future, AI and machine learning may radically alter the way work gets done, complementing and augmenting human capabilities.

Cognitive systems can perform specific tasks, becoming smarter by the minute through feedback loops.?But entire jobs are out of reach. If automation and outsourcing are to change the job landscape, 'updated' and AI-enabled humans will still be in charge. Mercedes-Benz is one example: 'cobot' arms (intelligent, context-aware robots), guided by human workers, manipulate heavy parts in an extension of the worker's body.

In this sense, AI can drive the need for new roles and talents, enabling beneficial collaboration with intelligent machines. Productivity can grow thanks to digitization processes that encompass data analysis, AI, robotics and automation. Human creativity still surpasses the power of computers, especially since abstract symbolic reasoning cannot (yet) produce meaning on its own.

Perhaps neuromorphic computers—which mimic important aspects of biological brains by being energy efficient, resilient, and capable of learning, in the words of the European Commission—can accomplish such a feat in the distant future.

But leaders must make decisions today that will affect the more global immediate environment and hopefully provide a return on investment. Wise leadership will recognize the tremendous opportunities and prowess of computer learning, illuminated by insights from neuroscience, while emphasizing human creativity. Not trying to compete with computers, but developing our human qualities: creativity, discernment, fairness of judgment, social collaboration, and a holistic vision of the future.

The new generation of wise leaders:

Embrace and cultivate collaboration between human and artificial intelligence:??transforming operations, markets, industries and the workforce with new skills.

Envision a more meaningful future:??Show your organization's stakeholders what it can look like, and guide and enable your organization to achieve that goal.

As a result, instill profitable progress while making society a better place to live:?upholding your fiduciary duty to the organization, its shareholders and stakeholders, and the community at large.

Facets of the intelligent leader in AI

The future 'cognitive enterprise' will be very different from anything we know today. However, the data is just a bunch of numbers that don't make sense without context. Therefore, AI-savvy leaders must facilitate innovation, embracing human-AI collaboration, transforming operations, markets, industries, and the workforce with new skills. An intelligent AI leader will combine the following traits:

Mobilizer:??Inspire people towards an imagined future

Social Builder:??Championing Human Interaction

Humanist:??Valuing the creativity of people

Mediator:??uniting humans and AI in a common quest

Navigator:??Building bridges in the AI ecosystem

Explorer:??Using AI to sharpen competitive advantage

Sense maker:??Emphasis on clarity in AI design and processes

Architect:??analyzing, diagnosing, designing

Guardian:??Safeguarding the integrity of AI design and maintenance

Wise AI leaders, like wise leaders in general, can envision a more meaningful future, show organizational stakeholders what it can look like, and guide and enable their organization to pursue that goal. In this way, they will instill profitable progress, making society a “better” place to live, all while fulfilling a fiduciary duty to their organization, its stakeholders, and the community.

Leadership in the age of artificial intelligence

In conclusion, the integration of AI systems within the financial sector offers immense opportunities for executives to streamline their workflow, freeing up time for critical tasks such as people management, strategic planning, and change management. However, it is crucial to address the potential challenges and concerns that arise alongside AI-supported automation.

The automation of back-office tasks through AI brings to the forefront issues surrounding data protection, labor laws, and organizational dynamics. Organizations must prioritize compliance with regulations to protect both employee rights and customer privacy. Clear protocols and robust safeguards should be implemented to instill trust and mitigate any risks associated with data handling.

Furthermore, the introduction of AI-driven automation can create concerns among employees, including fears of job displacement and the loss of human influence in decision-making processes. It is imperative for organizations to proactively address these concerns by fostering open communication, providing upskilling opportunities, and emphasizing the importance of employee well-being. By involving employees in the AI transformation journey and emphasizing their significance, organizations can cultivate a culture that embraces technology while valuing the unique contributions of its workforce.

As we navigate the advancements of AI, it is crucial to recognize that people should always remain the center of attention. AI systems should be seen as tools that augment human capabilities rather than replace them. By harnessing the power of AI while prioritizing human interests, creativity, and potential, organizations can pave the way for a future that harmoniously blends technological advancements with the invaluable contributions of individuals.