Artificial intelligence (AI) is probably a familiar term to most people by now. According to PwC's 2024 AI Business Forecast Report, 73% of U.S. companies have already implemented AI in at least some business areas, with generative AI leading the way. The report also predicts that AI will contribute up to $15.1 trillion to the global economy by 2030. This exceeds the current output of India and China. Combined.
While there are many use cases for AI, many organizational leaders have yet to be directly impacted. However, the gap is rapidly closing. The depth, breadth, and potential impact of AI is creating challenges for leaders in nearly every aspect of their roles.
In the face of such upheaval, it is important to emphasize that a leader's essential responsibility is to support their employees and their organization. That's not to say that change (some of it painful) isn't warranted, but leaders need to stay firmly in the driver's seat to determine how AI can best improve human expertise and well-being. must be seated.
Understand the potential of AI
AI technology is rapidly evolving. It seems like every day brings news about an amazing new feature, application, or prediction about how it will change the world. This deluge of opinionated information can be overwhelming, so the first thing leaders need to do is set aside their preconceptions and seek understanding.
Leaders who are directly involved in operations, and those who are not, are likely to appreciate the efficiency gains and cost savings promised by AI, avoiding deep knowledge of how the “sausage” is made. It may be.
But as AI capabilities continue to expand, leaders need to know where, why, and how AI is being used inside and outside their organizations. They also need to think multidimensionally, not only about the potential downsides of AI integration, but also about how it will be managed going forward.
Easier said than done? absolutely! In every iteration, AI crosses organizational boundaries and requires a holistic, expansive, and agile strategy to successfully navigate it. However, there is one overriding principle that underlies all successful strategies. That means humans, not technology, need to take the lead.
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Three pillars of AI strategy
Regardless of the size or structure of your organization, three pillars are essential to making AI analytics, strategy, and integration more manageable. they are:
How leaders choose to approach each will also begin to reflect the philosophy and values their organizations choose to embrace in their AI pursuits.
1. Task
Leaders first need to have a clear understanding of how AI is already being used across the organization. How will the decision to deploy AI be made? What processes will be handled and potentially enabled by AI?
To get a broader perspective, it's also helpful to research how other organizations and industries are implementing AI. For example, automakers are using AI to prevent machine breakdowns, improve quality control, and alleviate labor shortages. Meanwhile, some banks are leveraging AI-powered virtual assistants to expand their outreach efforts, leveraging financial experts for higher-value interactions.
When considering AI-related tasks in your organization, it's important to keep Moravec's paradox in mind. What is easy for humans may be difficult for AI, and what is difficult for humans may be easy for AI. As such, there may be a balance between tasks that are best performed by or with the assistance of AI and tasks that are best performed by humans.
The challenge is how to apply fresh eyes and new perspectives to redesign collaboration across roles, teams, workflows, geolocations, and borders to improve efficiency, employee satisfaction, or operational dynamics. It's about envisioning what can be improved.
2. Talent
As organizations grapple with organizing their workforces around the twin goals of leveraging AI to improve productivity and innovation, while building an AI-proficient workforce for the future, workforce planning It will become increasingly difficult. A skills-first mindset will become increasingly important. In other words, move away from job titles and toward a complete understanding of the competencies required for a particular job.
Here are just some of the questions you need to address.
- Which jobs are likely to be most affected in the short and long term?
- How will people in disrupted jobs be supported in adopting AI and upskilling?
- What impact might lost institutional knowledge have if people evacuate or choose to evacuate?
- How can AI-powered jobs expand the potential talent pool (e.g., by opening up the field to candidates who may not have been previously considered qualified)?
- What are the risks of acting hastily to reduce headcount (e.g., the need for unique 'people' skills becomes more apparent, requiring restructuring)?
Leaders must make every effort to imagine the real-world impact and consequences of the talent-related options presented. Careful and thoughtful implementation will be a useful tenet.
3. Trust
As more changes occur, employees will increasingly wonder when AI will come for them. Building and maintaining trust throughout the organization is paramount, and that responsibility falls on all leaders at all levels.
But leaders face their own dilemmas. Some aspects of their roles may also be disrupted by AI, and they often feel like they are operating in the dark and are expected to take on different or unexpected responsibilities. It may happen.
Not only do leaders strive to build and maintain a culture of trust with their teams, but maintaining a culture of trust during times of uncertainty can seem difficult. You must also seek the same level of trust among your colleagues. Although the populations are different, the core principles of trust are the same.
- credibility. Act in a way that is consistent with your values and beliefs.
- transparency. Share information to help employees understand what, why, and when changes will occur.
- listening. Provide a non-judgmental opportunity for employees to ask questions or express concerns.
- empathy. Always be attuned to the emotions of others and seek to understand their perspectives and emotions.
It’s also important for employees to know that their organization is building its AI strategy on human-centered principles.
final thoughts
Many AI-related questions will weigh on leaders in the coming years, none of which should be taken lightly.
McKinsey research predicts that between now and 2030, generative AI could enable the automation of up to 70% of business activities in nearly every profession. In the meantime, it seems clear that work-related tasks will be taken over by AI. That may mean a plethora of AI-enhanced jobs, but it may also mean people losing their jobs.
Leaders will be at the center of this disruption, and their role will not be compromised. Some of the expected features are directly related to leveraging AI capabilities. For some, adaptability, creativity, and interpersonal skills are challenged. Amid complexity and uncertainty, leaders can achieve positive results by remembering this core principle. In other words, it is your humanity that gives you strength as a leader.