The Impact of Gen AI on Leadership

??????????? In my last blog, I dove deeper into how disruption is shifting the way we do business today and how as a leader, we can turn our associates’ fear into hope. Although there is tough competition for what could be the biggest disruptor today from technological to economic and geopolitical, Gen AI is capturing the mind of many leaders, including myself. I ended my last blog with the question “How is Gen AI different than other disruptions?” It is a special disruption because it is developing at a rapid pace but with the longevity to become a permanent fixture in businesses. Gen AI is a learning journey and we do not have all the answers.? In this blog, I will discuss the initial impact of Gen AI has on leaders, how they can act, and how it can empower them.

Disruptions can differ in their momentum and scale. Disruption from Gen AI changed the way we think and the way we do business. Disruptions impact our workplace, but they also impact us on a societal level, like COVID-19. The pandemic forced leaders to navigate a complex landscape: maintaining client deliverables, tackling supply chain disruptions, and building a work-from-home infrastructure—all at once. Whether a technological or non-technological disruption, as a leader the same questions and emotions go through your head. How do I control this? What tools do I have to do this properly? We experience the initial fear and anxiety and slowly it gets replaced with curiosity. Then you become intrigued with the possibilities of what it could do for you, your team, and your organization. Finally, you ask yourself, “What actions can I take to help my associates through this change?”

Asking yourself this question will help you move from fear to assessment to decisive action. We fear change from Gen AI when we do not understand its capabilities and how we can work alongside it. While it leads us, as leaders, to consider our organization’s future, it’s much more personal than that; our associates fear that it can replace them. Leading empathetically and communicating what is going to change and what it means for your people will help eliminate fear. Leaders must understand, truly embrace, and align as a team on the future vision. Then, it is critical to communicate the future vision, what is changing, why it is changing, what it means for them, and address the concerns for their associates. Next, ensure there is a comprehensive program with resources to help your associates be prepared for the change. Now you have provided them with the opportunities to change and take advantage of Gen AI, ultimately working alongside it. The actions I have mentioned here are simple and known by most leaders. However, very few leaders successfully prepare their organization for change and disruption (McKinsey, 2015, found only 30% of transformations succeed).

Gen AI has provided a once in a generation leadership change that is empowering leaders who harness its capabilities. There is more to it than merely automating repetitive and time-consuming tasks. Gen AI takes ideas and strategies to the next level while helping eliminate risk during the decision-making process. It can analyze massive amounts of data from multiple sources, helping us simulate different scenarios, predict trends, and can create and prioritize ideas. Gen AI is saving leaders time and reducing the risk associated with decision-making. It gives them the power to do the right things. However, it cannot take away a leader’s ability to implement these decisions with the foresight that leaders should be equipped with. Crucially, it cannot provide the human-to-human connection that is needed to successfully run an organization. When we experience disruptions, we rely on our leaders’ emotional connections to pull us through. Gen AI cannot remove fear. In my last blog, I spoke on what an effective leader that guides disruption today should be. They should be confident, empathetic, and turn their associates fear into hope. In the future, leaders cannot stray away from these core leadership skills, but they will adjust for the partnership with AI. They will need effective communication skills to explain the “why” behind their decisions and humanize the process for their associates.

Disruption comes with opportunities and challenges. The disruption from Gen AI evokes the same emotions and responses as previous disruptions. However, its momentum and intriguing capabilities spark curiosity for leaders. We educate ourselves, challenge ideas, and wonder what it means. As leaders, we align our vision as a team and then communicate the tools needed for our associates to adopt these changes. This truly is a learning journey for all of us. It gives us the power to make the right decisions. However, as it continues to evolve in the next 5-10 years, will the leadership skills needed to run an organization change?