As artificial intelligence develops into practical applications, more businesses turn to AI to hone, perfect, and grow their operations. The role filled by AI is a critical one, which is to gather data and draw intelligence from all manner of sources to create conclusions leaders can rely on. The chief benefit of artificial intelligence in business is assurance. Now that AI has created more significant opportunities for more efficient decision-making, it’s essential to consider how leadership may be affected. In this article, Dan Calugar discusses how business leadership might change as AI develops its decision-making capabilities.
The Human Element
The apparent worry that comes with artificial intelligence is its potential for replacing executive officers, making high-level decisions in place of a person. In this way, AI poses no threat to the leadership of a company. A good leader requires qualities an AI cannot yet provide, such as empathy, charisma, and an inspiring presence to keep teams cohesive and motivated.
A leader requires a singular vision to lead their business forward. Until AI develops conceptualization, it can only grow to help foster the ideas of others. However, that doesn’t stop AI from providing insight as a management tool.
Middle management employees have found that many of their roles can be streamlined by artificial intelligence. Task automation, timekeeping, forecasting, KPI analysis, and even hiring for open positions can all be handled by current AI systems.
Systems that assist in hiring, for instance, scan resumes and cover letters for relevant keywords and analyze pre-screening video interviews for the tone of voice and facial expressions to predict behavior. By filtering down to the most relevant candidates for a position, hiring managers can select the right person for the job at speed.
Mainly, this results in greater efficiency and productivity at the individual level, making it easier to avoid time-wasting, context switching, and redundant tasks. This may not replace middle managers entirely, and it probably never will. Still, it smoothens operations considerably, freeing up time and energy for managers to leverage that crucial human element.
Informing Decisions at the Top
While AI is reducing time spent on data management, it provides relevant and crucial data points for upper management. While AI won’t outright replace officers in upper management, it will make that data more accessible, providing more efficient business intelligence for quicker and easier decision-making. Put differently, as AI develops, it will serve only to sharpen and enhance decision-making at the top.
Artificial intelligence systems such as Customer Relationship Management (CMS) for better customer retention, targeted product suggestions, and marketing simulations for anticipating customer behavior are all systems that help inform high-level decisions. Further, systems like opinion mining provide insight into the public opinion of an organization, removing guesswork and biases when leaders want to know why customers feel the way they do about their business.
With tools such as these available, leaders can expect to make important decisions about their business more swiftly, more efficiently, and with more reliable results. In this way, decision-making and leadership will only improve.
About Dan Calugar
Dan Calugar is a proven investor with a background in business, law, and computer science. Before acquiring degrees in business and law, Dan pursued his keen interest in computer science. While working as a pension lawyer, Dan Calugar developed a passion for finance. Combining his knowledge, he leveraged his technical skills to build computer programs that would analyze vast amounts of data and explore trading strategies to identify more worthwhile investments, bringing him to success as an investor. When he is not working, Dan travels with his life partner and family and supports the Angel Flight Organization.