Would having an AI boss be better than your current human one?

Managing 83 employees had taken a toll on Hannu Rauma, a senior manager at Student Marketing Agency in Vancouver. Feeling bogged down and frustrated, Rauma's perspective changed dramatically in November when the agency adopted an AI manager developed by the US-based company Inspira.

This AI manager assists employees by setting schedules, planning workloads, tracking time, sending reminders, and updating work progress. It even offers suggestions to improve written text and answers work-related questions. Rauma noted a significant reduction in his stress levels and a boost in employee productivity, stating, "It's added years to my life."

Rauma's relationships with his employees have also improved. The shift from a "father-child" dynamic to a more equal footing has allowed for more positive interactions. Not all employees at Student Marketing Agency use the AI manager yet, as Rauma and 26 of his team participated in a study comparing AI and human managers' effectiveness.

The study, conducted by Inspira and academics from Columbia University, Arizona State University, and the University of Wisconsin, divided participants into three groups: one coached by a human manager, another by the AI manager, and a third by both. The AI manager showed a 44% success rate in getting employees to pre-plan workdays and a 42% rate for timely log-ins, comparable to the human manager's 45% and 44% respectively. Combined, AI and human managers achieved a 72% success rate in pre-planning workdays and 46% in timely log-ins.

Despite the study's limited scope, its results highlight the potential benefits of integrating AI tools in the workplace. Companies like Dell have announced job cuts, intending to replace roles with AI, but experts caution against fully replacing human managers.

Prof. Paul Thurman from Columbia University emphasizes the critical role of middle management, stating that human managers excel in providing continuity, mentoring, and coaching. AI can free managers from mundane tasks, allowing them to focus on innovation and personal development. AI can also identify team members who need more support or recognition.

However, companies must avoid turning AI managers into surveillance tools, warns Prof. Thurman. Tina Rahman, founder of HR Habitat, suggests that AI managers could help "accidental managers" excel by providing clear instructions and transparency, potentially improving job satisfaction and productivity.

The biggest concern, according to James Bore, managing director of cybersecurity consultancy Bores, is cybersecurity. AI managers handling sensitive company information could be targeted by cybercriminals. Over-reliance on AI might lead to unintended consequences, making companies more replaceable and vulnerable.

Balancing AI and human management could lead to more efficient and productive workplaces, provided the right safeguards are in place.

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