The Business Leader's Dilemma - to AI to not?

We are in unprecedented and challenging times. Especially for the business leaders and entrepreneurs who have probably not seen so much change on various fronts happening in such a short time frame. While they still need to be able to run their business profitably and sustainably in an increasingly complex and dynamic environment, the question that remains is - should they remain focused on their core objective and ignore that what's happening around as passing hype that will die down eventually? Or should they take it seriously and use it to their advantage to leap their business forward?

As artificial intelligence (AI) continues to evolve at a rapid pace, business leaders are asking themselves: Do I embrace AI’s potential, or do I err on the side of caution?

In this article, we'll explore both as we attempt to understand both the promise of AI adoption, touching on security, workforce impact, ethics, and the unique human qualities that leaders must cultivate on one hand, and on the challenges and perils to be wary of on the other.

It's a dilemma that the business leader will need to come to terms with, whether it's now or later.

Running a profitable and sustainable business in todays' world has never been so challenging. Each geography and market pause their own economic, social, environmental and political challenges. There is more and more pressure on leaders to report on their compliance of their sustainable business practices. Customers are becoming more and more sensitive to this and are adapting their buying behaviors accordingly. The ability of the business to be on top of its customers ever-changing needs and being innovative in how it provides a delightful customer experience while keeping an eye on the operations, the required logistics, and motivated workforce to make it all happen is what will determine whether it will remain in business and thrive.

All of the above, irrespective of the industry, require a great amount of process automation and efficiency, an informed decision making at all levels, as well as the required risk mitigation and security measures in place to help steer the business in the right direction at all times. Requiring the business leader to learn to adapt and innovate while it builds a resilient business that will thrive in an ever-evolving landscape, at all times.

Though the degree of effectiveness can always be questioned, most of the above has been happening till now, without the direct use of AI. The cautious and traditional business leader would argue - why should I take the risk of stepping into an unknown which I can't control and risk my business. Especially if it's so new. When it's not yet fully matured. And with all the risks and perils that are inherently linked to relying on LLMs and machine generated algorithms that are a black box to me.? Hence the dilemma stated above. The business leader is not sure whether to AI or not. Especially when they hear other leaders have taken the plunge and the latter have started to reap the benefits of AI, albeit in specific areas of the business.

Having worked closely with hundreds of business leaders across different industries, in various geographies and markets over the past two and half decades, I will admit that this is an initial fair stand that most unaware leaders would take.? However, I also know that most of them don't want to remain in a status quo mode. They realize that they need to adapt and evolve with the times. This is about the very future of their business.

Especially when we look at the S&P's 500 index, the average lifespan of a company dropped from 33 years in 1965 to 20 years in 1990 to a projected 14 years by 2026. Adaptability is crucial to survival.

On a positive note, AI adoption holds a lot of promise that's already being proven these days. We can coin this as AI-enabled management. Where AI is able to enhance decision-making both at a strategic and an operational level. As it processes vast amounts of data, learns rapidly and provide insights that humans may miss, it is able to provide accurate and objective analyses, reducing human error and bias. Ensuring decision quality and repeatability on a large scale. Decisions can be made faster in a dynamic environment. As a result, organizations are run more efficiently and visibility on operations and timely decisions lead to reduction in costs at different levels.

• There are so many use cases in various industries where AI is helping tremendously, whether in the manufacturing, retail, distribution, services, life sciences, energy, education, and so on. And the list is growing rapidly as the machine learning models and AI algorithms are trained and get more mature with time.
• AI is also helping with automating repetitive tasks, streamlining workflows and reducing manual effort across various business functions. Leading to enhanced productivity and higher employee morale.? AI-driven innovations are helping organizations come up with new products and services, thereby opening up new revenue streams faster than before. AI is helping organization detect anomalies, prevent fraud and enhance cybersecurity, allowing the business leaders to safeguard sensitive data and protect against threats in a better way.
• Taking this a step further, AI is also helping organizations tackle intricate problems with multiple parameters and data points that may be overwhelming for humans. Examples are supply chain optimization, preventive maintenance, troubleshooting, personalized customer experiences, and so on.?

However, before taking the leap, the business leader needs to be cautious of the challenges and perils that are linked to the use of AI. Typically, there are concerns on data privacy and security, which we have heard a lot of lately. Which data has been used to build and train the machine learning models and LLMs? Have they been vetted? Can the outcome be trusted? Has personal data been used? What are the ethical implications and ensure there is no bias and that there is transparency and fairness in the application of AI. How will all this impact on their decision-making?

There is also the sensitive topic of the impact of AI on the workforce. How can this be mitigated and addressed in a way that does not impact on employee morale? AI at the core is meant to augment human capabilities and provide assistance to help humans do their jobs in a better way. I can draw an analogy when robotic and industrial automation happened several decades ago. People and businesses have adapted since.

AI can automate processes, but they may lack the human touch and business leaders here would need to find a balance between aiming for efficiency and maintaining empathetic customer interactions.

All of the above do require the business leader to have an understanding of how AI can be used within their organization, so they can navigate the challenges thoughtfully in order to fully harness the benefits that AI brings. Awareness is a key quality to harness. The business leader needs to understand the AI strengths and limitations, so they can make informed decisions accordingly. They need to be mindful that compassion and empathy remain uniquely human capabilities that foster positive relationships and AI is not ready with that soft skillset yet. And lastly but not least,

business leaders will need to apply judgement, ethics and long-term thinking when adopting AI, as these are areas where AI falls behind.

Hence, while AI offers immense potential for the forward-looking business organization, the business leader must always balance its benefits with ethical considerations and should focus developing distinct human qualities that cannot be easily replicated by AI. This is a fine balance that when applied intelligently, it will go a long way in helping businesses make the most of AI while staying vigilant and being on top of their game. Helping the business leaders LEAD with AI and not be LED by AI.

It is thus not so much a question of whether to AI or not. It's more of when, and how!

About the author

Aumesh is a seasoned business leader with more than 25 years of global cross-industry experience with a passion for technology and customer success. He has held leadership and business development roles in major consulting services and technology firms, namely IBM, Oracle, an Accenture affiliate and is currently with CGI. Throughout his career, he has contributed to the development, deployment, and execution of sales and market-entry strategies for enterprise business applications and technology solutions in emerging and mature markets.

Views expressed in this article are my own.