Insight

AI in Leadership, Leadership Skills
Dr. Agus Setiawan

PhD Holder and result-oriented Director with 25 years experience with involvement in all levels of Business Strategy, Sales and Marketing, Managing Project and Product Development. Aside of managing a company, he is also the best corporate trainer and public speaker in seminar and conference.

Catalyzing Change: Mastering Leadership in the Age of AI

As we’re entering the "AI era", the results are significant and wide-ranging. It brings changes in the fundamental structure of our people, not only on technology or process strategies. The question "What roles will humans play when machines can think" then arises. "What will it mean to work and contribute value when AI-driven processes are standard?"

Several studies have shown how significant the impact of AI in work environments, specifically in how processes and team collaboration are undertaken. In 2018, McKinsey’s survey about the global future of worl shows as many as 30% of tasks in about 60% of jobs hold the potential for automation. In addition, McKinsey added that 40% of their respondents say their organizations will increase their investment in AI overall because of advances in gen AI (2023). As of in finance section, a study by Gartner shows that 39% of organizations currently use AI in the finance function (2023).

Leaders who master the integration of AI into their leadership approach recognize the need for a transformative mindset. Instead of viewing AI as a threat to traditional leadership roles, they embrace it as a catalyst for positive change. This mindset shift involves understanding that AI is not a replacement for leadership skill but a powerful tool that amplifies leadership capabilities. Leaders who catalyze change in the Age of AI cultivate a culture of innovation and adaptability, fostering an environment where AI is seen as an enabler of new possibilities.

AI leadership involves strategically aligning AI initiatives with organizational goals. Leaders must have a clear vision of how AI can enhance and complement existing processes. Whether it's optimizing operational efficiency, improving customer experiences, or driving innovation, aligning AI strategies with overarching business objectives is essential. Effective leaders leverage AI as a strategic partner, integrating it seamlessly into the organizational fabric to achieve a competitive edge.

These 3 essential points should be the highlight for leaders to steer the business in AI-driven world:

  1. Empowers Data-Driven Insights Culture

    Leadership in the Age of AI extends beyond individual capabilities to the creation of collaborative ecosystems. Successful leaders understand the importance of fostering collaboration between human and AI entities. This involves creating interdisciplinary teams where human expertise is augmented by AI capabilities. The ability orchestrate insights gained from AI-driven data analytics and supervised by data specialists’ enables real-time informed decision-making by providing leaders with data-driven insights, which minimize dependency on specialized data teams.

  2. Promote Objective Choice

    As AI becomes more pervasive, ethical considerations take center stage in digital leadership. Leaders must navigate the ethical implications of AI implementation, addressing issues such as bias, privacy, and transparency. AI offers neutral conclusion through well-informed data, which will able support leaders in producing objective perspective of human prejudices and thus promoting balanced and grounded choice.

  3. Optimize Predictive Capabilities

    AI offers neutral conclusion through well-informed data, which will able support leaders in producing objective perspective of human prejudices and thus promoting balanced and grounded choice. This could benefited leaders and stakeholders in navigating strikethrough problem solving and decision making to predict business uncertainty.

AI technologies evolve rapidly, and leaders must stay abreast of the latest developments to harness their full potential. As leaders, we should overcome challenges in AI leadership and approach these evolving environment with an open mind and common sense. It's critical that we continuously develop and improve our own viewpoints so that, even as we strive to fully utilize AI's potential, we are aware of its results and prioritize values and contributions to humankind.



Reference:
Gartner. 2023. Gartner Survey Shows 39% of Organizations Currently Use AI in the Finance Function. Retrieved from https://www.gartner.com/en/newsroom/press-releases/2023-12-04-gartner-survey-shows-39-percent-of-organizations-currently-use-ai-in-the-finance-function
McKinsey. 2018. The Promise and Challenge of the Age of Artificial Intelligence. Retrieved from https://www.mckinsey.com/~/media/McKinsey/Featured%20Insights/Artificial%20Intelligence/The%20promise%20and%20challe nge%20of%20the%20age%20of%20artificial%20intelligence/MGI-The-promise-and-challenge-of-the-age-of-artificial-intelligence-in-brief-Oct-2018.ashx#:~:text=Nearly%20half%20of%20respondents%20in,30%20percent%20are%20piloting%20AI.
McKinsey. 2023. The state of AI in 2023: Generative AI’s breakout year. https://www.mckinsey.com/capabilities/quantumblack/our-insights/the-state-of-ai-in-2023-generative-ais-breakout-year
Peifer, Y., Jeske, T., & Hille, S. (2022). Artificial intelligence and its impact on leaders and leadership. Procedia Computer Science, 200, 1024-1030.
Uddin, A. S. M. (2023). The Era of AI: upholding ethical leadership. Open Journal of Leadership, 12(04), 400-417. Watson, G. J., Desouza, K. C., Ribiere, V. M., & Lindič, J. (2021). Will AI ever sit at the C-suite table? The future of senior leadership. Business Horizons, 64(4), 465-474.

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