Leadership in the era of AI
I was in the USA during second half of April and met many in the entrepreneurship, technology, and banking ecosystem. Almost everyone was talking about the expanded role of artificial intelligence (AI) in their day-to-day life. Some were talking of human jobs likely to be taken over by AI and some were of the opinion that even to run AI well, the industry would need well-trained human beings.
We all possibly know by this time, in the dynamic landscape of business, leaders are confronted with multifaceted challenges spanning market growth, customer engagement, operational efficiency, talent optimisation, innovation, and supply chain management. As the realm of AI continues to evolve, leaders must navigate these complexities with strategic foresight and adaptability. In the era of AI, leadership necessitates a paradigm shift towards leveraging technology to address these challenges proactively and drive sustainable growth.
Leaders must acknowledge AI's significance and grasp its potential impact on their business. They should perceive AI adoption through multiple dimensions: Business, ensuring alignment with strategic objectives and enhancing efficiency; Intelligence, understanding AI's various levels of autonomy and its implications for decision-making; Data, prioritising data quality and governance to derive meaningful insights; and Technology, evaluating the tools and platforms necessary for successful AI integration.
They should have a basic understanding of AI applications and development paths. Embracing a growth mindset for ongoing learning is key. Everyone on the executive team and board needs to understand what AI can do and how it fits into the business, by bringing in different viewpoints and questioning assumptions about where and why we use AI.
For leaders, articulating a clear vision for integrating automation and AI into the company's strategy is pivotal. They must first identify core challenges aligned with their competencies, selecting the right technologies to address them effectively. It's essential to resist the temptation to pursue emerging AI applications without a solid scaling plan or alignment with strategic goals while determining the scope and pace of implementation. Leaders must decide whether to lead in AI adoption or follow industry trends. Additionally, attracting the right talent is crucial for successful execution. The envisioned strategy may involve leveraging AI to enhance efficiency, automate tasks, foster innovation, and improve customer experiences.
Establishing the right decision-making authority and governance structures is crucial for embedding technology, particularly AI, across business units. The aim is to apply AI broadly within the organisation beyond solving technical issues. This requires considering data strategically, identifying value-creation areas, assessing existing data assets, and acquiring necessary data. Access to data from all key business functions is essential for AI to deliver targeted benefits. Leaders should emphasise the importance of data-driven decision-making, encouraging functional leaders to embrace this approach.
Leaders face the complex challenge of overseeing the integration of human and machine intelligence while ensuring responsible AI practices. Concerns arise from algorithms perpetuating biases and stereotypes, prompting the need for processes to detect and address biases in data and machine learning models. Ethical considerations, including risk mitigation and workforce well-being, should be embedded into AI algorithms and datasets from the outset. Involving the board of directors is crucial for addressing compliance risks and maintaining the company's reputation. Responsible AI practices, characterised by transparency and explainability in decision-making, foster trust. Leaders must implement clear policies on data privacy, decision rights, and AI system transparency to uphold accountability and build trust within the organisation and broader society.
By harnessing the power of AI, forward-thinking leaders can navigate the complexities of today's business landscape and propel their organisations toward unprecedented success by revolutionising traditional business models.
However, question may arise -- what our leaders in Bangladesh would do, where even leaders in IT industry mostly come from non-IT background and not accustomed to good governance or people management practices. The answer would be -- sooner we adopt those good practices, better for us.
The writer is an economic analyst.
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