 Leadership in the Age of Artificial Intelligence (AI)Shoba Krishnan SBS Swiss Business School Research Conference (SBS-RC) from SBS Swiss Business School Abstract: Artificial intelligence is becoming an integral part of company strategy. AI’s capabilities are always evolving, with the focus shifting from what it can accomplish to what it cannot. Furthermore, senior management is substantially transforming in every aspect, from how they coach and inspire teams, to how they integrate AI and human power to achieve firm goals, to the ways they drive transformation and challenge. The promise and excitement around AI’s expansive role run high due to its limitless potential. One thing is clear: organizations must be prepared for the paradigm shift; AI is no longer optional. The challenge now is whether leaders are ready to rise, deliver the vision, and adapt to seize the opportunities. To gauge readiness, UAE’s leading smelting manufacturing businesses polled over 450 C-Level executives nationwide, analyzing their perspectives on AI’s acceptability and adaptability within themselves and their organizations. Additionally, 12 to 15 interviews were conducted with global leaders, revealing that most leaders see AI as an opportunity rather than a threat, though they find the path from development to success ambiguous. Material opportunities identified by leaders include increased efficiency, more effective decision-making, improved risk management, and the creation of innovative products and services. However, leaders are wary of potential threats, with “manpower redundancy” and “data protection” being primary concerns. The implications of these technologies on workforce dynamics have sparked extensive debate. By 2030, approximately 375 million workers (14% of the global workforce) may need to transition to new occupations or acquire skills in automation and AI. This shift challenges executives to adapt to a changing workforce and develop new management strategies for a technologically driven workplace. A cross-functional MIT Sloan team demonstrated performance gains of up to 40% in skilled workers using generative AI, which can produce high-quality writing, graphics, and other content. This monumental shift could add trillions to the global economy, revolutionizing work, study, and societal interaction. According to a Boston Consulting Group report, 61% of executives in the Middle East anticipate these technologies will boost productivity by over 10% by 2024. Despite regional training efforts surpassing global norms, challenges remain in fully equipping personnel and addressing future AI regulations. This article offers insight into how leaders in the Middle East view AI’s impact on organizations, employment, and their roles, and how prepared they feel to lead through this revolutionary disruption. We investigate the factors and determinants of leadership and organizational readiness, highlighting the need for leaders to navigate the inevitable technological revolution. Keywords: Artificial Intelligence; Generative AI (search for similar items in EconPapers) Published in book of proceedings of SBS Swiss Business School Research Conference 2024, pages 43-51 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bfv:sbsrec:003 Access Statistics for this paper More papers in SBS Swiss Business School Research Conference (SBS-RC) from SBS Swiss Business School Contact information at EDIRC. |
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