The Age of AI: A Time for Leaders to Shine

Nearly 40 years ago, the Massachusetts Institute of Technology (MIT) published a path-breaking initiative titled “Management in the Nineties,” in which it suggested that the evolution of technology through phases of localized exploitation and internal integration would suddenly encounter a revolution in the form of business process reengineering, business network redesign, and finally, business scope redefinition.

Today, well into the 21st century, all leaders and managers take the recursive relationship between IT and business strategy for granted. Only a corporate dinosaur would still lack awareness about digital technologies.

If one were to mount a similar research initiative today, the focus would surely be on data, analytics, artificial intelligence (AI), machine learning (ML), and the impact these technologies have on business processes. Managerial responses would have to be calibrated based on the level of maturity the firm has attained in data capture, ingestion, storage, and dissemination, and the comfort it has in making managerial decisions based on predictive and prescriptive analytics. Within the plethora of ideas that pervade the mindspace of C-suite and board executives, there is no doubt that leaders of the future will have to cope with, manage, and lead with the use of automation and AI as strategic tools for capturing opportunity share and dominating their industries.

Game-Changing Technology

What makes mastery of AI imperative in this changing business environment? After the proliferation of newer versions of ChatGPT and the impact AI has had on customer preferences across industry segments, most progressive firms have come to realize that leaders and managers who understand AI have nothing to fear from AI itself. Rather, it is the naysayers who keep their heads firmly buried in the sand who stand to lose out and get swept away in the tide of new capabilities.

However, a recent warning bell rang out, highlighting the need for caution. On July 19, airlines and business establishments around the world came to a grinding halt for a few hours when a simple upgrade triggered a complex set of compiler failures, bringing down a near-ubiquitous software like Microsoft Windows. One can blame the testers, but with automation and AI increasingly taking over testing and verification, who will we blame when future failures are caused by AI?

Leadership in the Age of AI

In such a world, what should leaders do to embrace AI and provide thought and action leadership to their teams across functions and geographies? Research for a forthcoming book on leadership in the era of automation and AI shows that leaders who are comfortable discussing their moments of epiphany and plans are also taking robust action in three areas:

Enhancing Their Own Understanding: Leaders must develop new insights on where AI would best augment the capabilities of their organizations.
Encouraging Experimentation: Adequate experimentation in the use of AI across every process within the organization is crucial.
Driving a Data-Driven Culture: Leaders must ensure that the entire organization is driven by data, with actionable insights presented in a timely manner, allowing management teams to move beyond retrospective analysis to proactive, future-oriented behavior.

Embracing AI as a Strategic Tool

This is a time for leaders to show their true mettle. AI should be viewed as one more tool in the arsenal of strategic weapons, deployed thoughtfully at the right places and at the right time to bring managers closer to their teams, customers, and all stakeholders in the business. Leaders must set new goals for their organizations or even their state or country and deploy AI wisely to realize the true potential that lies ahead.

The author is the chairman of 5F World & Honeywell Automation India and a board member of the Hinduja and SBI groups. All views expressed are personal.