How will AI redefine Management?
Artificial Intelligence has gained enormous traction in the past years and it is making a big impact across all industries. We have seen, and also discussed, the AI impact in the marketing Marketing and Supply Chain industries.
Today, I want to talk about AI and its impact in Management, which is a broader term, since it is not applicable to one industry but multiple.
Talking to colleagues of mine - Directors, People Manager and Project Managers - I have encountered different opinions or approaches towards the impact of AI in their environments. Many fear of it due to the potential for AI technologies to replace current workforce; others are still quite ignorant to the impact; others are on denial mode believing it won’t hit them and only a few see and understand the benefits and possibilities it can offer
I personally believe we should not fear the rapid evolution of AI in the industry. In this article, I want to explain all the possibilities but also challenges that, in my opinion, AI will bring to Management
What is Artificial Intelligence?
We have already covered the definition of AI more thoroughly in previous blog posts. As a recap only, let’s stick to its main definition:
“Artificial Intelligence leverages computers and machines to mimic the problem-solving and decision making capabilities of the human mind”
It is important that you understand this concept, as it will be the key to then be able to understand the possibilities but also the challenges that AI will bring to Management
Management: AI opportunities & challenges
1.New Intelligence requires new leadership
Artificial Intelligence won’t exist in an organization unless the Leadership team makes it happen. This in itself already triggers possibilities or challenges:
Is your leadership team already implementing AI solutions in your organization?
Is your leadership team educated or assessed properly in regards to new technologies like AI?
Is there an Innovation department/team or anyone appointed to be up to date with the latest technologies that could benefit your organization?
2. Automation, Data-driven decisions and Time-waste reduction
In the immediate, when looking at practical examples and tangible benefits of AI in Management, we should mention:
Automating business processes: reduce human errors, guarantee a standard way of working across multiple teams and specially for management, grants the continuity of the organization’s strategy avoiding deviations.
Driven decision making: more precise and cost-effective decisions can be taken thanks to the vast amount of Data that AI (through Machine Learning) can process and also recommend or suggest decisions that would now only require human curation.
Time-Waste: Companies making use of AI have understood that reducing time-waste from their organization is crucial and hence the added value that chatbots and virtual assistants can bring. Engaging with customers and employees is providing magnificent results, both for the customer/employee as they obtain their response on the spot, by being guided to the right source of information. And for the organization, freeing time of those that would have given those answers in the past, enabling them to focus on more urgent matters of the organization.
3. Machines are unlikely to replace humans
For the foreseeable future, artificial intelligence and machine learning will help us do our jobs better by complementing and augmenting human capabilities. Cognitive systems can perform specific tasks and get smarter over time via feedback loops. But entire jobs remain beyond their scope. Thanks to digitization processes, productivity can grow with the help of data analytics, artificial intelligence, robotics and automation. Human creativity still surpasses computer power.
4. Bias decisions: Human weakness turned into a Strength
Our emotions led to the development of moral and ethical principles that transcend calculating, utilitarian thinking. We can only hope that managerial wisdom will be able to address current challenges and create a more “conscious”- and purpose-driven future, something machines cannot do by themselves.
5. Focus on People Skills
With AI taking over more administrative and analytical tasks, Managers will have the opportunity to focus on developing social skills that will allow them to excel in a world where AI can’t strive. Social Networking, Coaching, Mentoring and Collaboration will gain more relevance with the advance of AI
The criteria for success (KPI’s) will include collaboration capabilities, information sharing, experimentation, learning and decision-making effectiveness, and the ability to reach beyond the organization for insights.
Closing
While the arrival of new technologies like AI isn’t imminent, they are coming soon. Executives should focus on preparing their workforce for the changes to come. Those who realize this will be better prepared to embrace the changes these technologies will bring.
Can you foresee any other impact of AI in Management?
